INSURANCE FOR BROKER

[Babs4]

Does anyone know if a broker needs to carry Errors and Omissions Insurance? Is it required by law? Thank you...

[Sylvia]

While I don't think any insurance is mandatory, it's foolhardy not to carry it. Anything that you didn't know about what ever property you represent that's wrong is grounds to be sued over.
Thankfully my company pays for my E & O insurance so I don't have to foot the bill but if I was in business for myself that would be my first priority.

[Babs4]

Sylvia, thank you for your response. The reason I ask is I sold a home (through a broker) two year promissory note. Pure you know what from the beginning. She was paid a commission, he bailed in July still owing me 20,000.00. In the two years since this began I took her to mediation, to small claims (the judge dismissed without prejudice because she PROMISED to get him a conventional mortgage!). The judge also told me to bring her back to court if not resolved. Never heard from her after the court date. She was audited by the State on Tuesday of this week. I was told by the Auditor the only deal that went south (she's done this previously) was mine. She is being slapped on the hand, made to promise not to do a deal like this again and she keeps her license. He told me to go after her Surety Bond, which if I'm reading correctly is almost like E & O. I now have an attorney, to go after her, her business and the gentleman involved. I guess I would like to hear from someone who may have been in this situation and can give me some feedback to their resolution. If you have some feedback I would like to hear back from you as well. Thank you....

[Sylvia]

A surety bond would probably be instead of E & O, it's probably a state allowed choice where you live. A surety bond can be held instead of regular liability insurance or with it.
I've never been in a position to have to put my E & O insurance at risk or subject to a lawsuit in the past 8 years I've been an agent. Happily, I doubt I'll ever been in that situation either.
Have you spoken to licensing board yet? I don't know if real estate agents have commissioners, but there has to be someone in charge of the licenses as there is for insurance. They can probably direct you better in the right direction. The last thing a commissioner wants is an agent giving the state a bad reputation.

[Babs4]

I'm working on it... She was audited last week I'm waiting for a report on that. I spoke with the insurance division and they are sending me a complaint form. I'm hoping to hear from my attorney today on my options. I keep plugging away and filing complaints with the State and everyone I can because I know there is someone out there that can help me. Thanks for the advice.. If anyone else has info to share please forward. Thanks!