What should I know before starting a real estate brokerage?

here is certainly a legal aspect to starting a real estate brokerage that you should familiarize yourself with from the very start. There are many laws that can greatly influence the success and reputation of your brokerage firm and you don’t want to ruin your chances because you aren’t aware of the legality of this type of business.

Common litigation associated with real estate brokers include:

Misrepresentation of property

This can include negligent, innocent, and fraudulent cases. You have to be sure that you verify personally any information associated with the property. If the information is inaccurate, you are legally responsible for that information once you pass it on to a potential buyer.

Fair Housing violations

Be very careful about the people you choose to work with. Buyers that refuse to sell to individuals of a certain race or background can lead to a lawsuit for you. Take the time to vet your clientele to make sure that there is absolutely no discrimination throughout the process. You may want to invest in some additional training to help detect and avoid these situations for your business.

False advertisements

Make sure that any advertisements that you use in your brokerage complies with the law. Misrepresenting your business or the real estate that you work with, can lead to a hefty lawsuit in the future.

There are certainly more laws associated with this type of work that you should understand before you even think about starting your business. If you need some help maneuvering through the complexity of real estate law then visit us at LawTrades. We have many experienced real estate attorneys available to assist at a rate that works for you. Best of luck.