Legal Issues facing Real Estate Professionals

Just out from NAR...

The National Association of REALTORS® has conducted a survey of the current legal environment faced by real estate professionals. NAR undertakes this comprehensive research project, or "Scan," every two years. It analyzes current legal liability issues and identifies emerging legal and risk issues. The Scan is based on surveys of key people in the real-estate industry, as well as data obtained from case law and statutory research.

This report discusses developments in several major-topic areas, including the legal research and the survey results, emerging trends, and the need for training. The results of the legal research and the survey data are set forth in the tables in Appendix 1. Lists of the cases, statutes, and regulations, organized by issue, are provided in Appendices 2 and 3. The research technique is described in Appendix 4. This last Appendix describes the scope of the project, and how the legal-research and survey data were collected.

Agency issues are the top area of concern for real estate professionals, along with RESPA and Property Condition Disclosure. These issues, along with As-Is Clauses and Commission Disputes, seem to be particularly important in the current down market, where many licensees may be unsure of how to handle the unique challenges being presented. Other issues emerging from the current economy include wage-and-hour claims and potential liability for "mortgage rescue" scams.