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Protect Yourself from Sellers Disclosure Lawsuits

by Leighton, Kelly on

Buyers filing lawsuits against homesellers after the sale can cost the sellers an average of $15,000 in legal fees.

Some of the most common reasons cited are roof leaks, construction defects, water damage and electrical faults. This type of lawsuit can cause a significant financial burden to many sellers.

One of the most common reasons sellers are vulnerable to lawsuits is because of errors on the Seller’s Property Disclosure form, which is the most referenced document in home sale-related litigation. If a buyer believes the seller deceived them, they can file a lawsuit and involve anyone in the sale including the seller, the listing agent, inspectors and their own agent. While agents, brokers and inspectors have coverage with their errors and omissions insurance, sellers are not protected under this insurance. This means sellers are responsible for hiring their own attorneys, as well as paying the consultation fees and all legal bills. These costs can escalate quickly.

Completing the Seller Disclosure Form as accurately and thoroughly as possible can help avoid a detrimental lawsuit. However, even if a seller discloses properly, a buyer still might file a suit against the seller and their agent.

PAR has partnered with Sellers Shield™ to offer a benefit to members which helps protects their sellers, and themselves, from the financial and emotional devastation of a home sale lawsuit.

Sellers Shield™ offers Home Sale Legal Protection™ to defend sellers if a lawsuit does occur. It immediately assigns the seller a qualified real estate attorney, supports the seller from start to finish and pays up to $20,000 in legal fees.

Learn more about how Sellers Shield™ helps agents be the best possible advocate for their sellers.

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Preferred PARtners Sellers Shield
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