Claims Against Real Estate Agents
There were a record number of claims against real estate agents in the UK in 2010, up 25% from 2008 and the highest level in 20 years. If a complaint is justified an agent could be required to pay up to 25,000 in fines, so it is advised that any potential buyer makes sure their estate agent has professional indemnity cover in place.
National bodies like the NAEA (National Association of Estate Agents) have made it a requirement for estate agents to have this coverage in place before they can become a member of the association. Professional indemnity insurance covers estate agents in the event that a claim is made against them, and ensures cover when any professional service provided by the agent results in a financial loss to their client. It primarily provides protection from accusations of poor advice and malpractice.