NAR Video Shares Tips to Reduce Referral Liability
NAR’s latest Window to the Law video outlines best practices Realtors can follow to reduce legal risk when referring contractors or service providers.
ORLANDO, Fla. — When real estate professionals refer clients to a contractor, they may be opening themselves up to liability. The latest Window to the Law video by the National Association of Realtors® offers practical tips to help Realtors® minimize their risk.
In the video, NAR recommends Realtors follow some best practices when providing recommendations for home service providers, including:
- Asking the contractor to provide written confirmation of proper licensure and liability insurance coverage and sharing the information with your customer.
- Providing your customers with a list of trusted professionals so they can make the final decision.
- Complying with your state’s laws regarding duties owed to customers, including the duty of reasonable care, which broadly covers professionalism and ethical and lawful conduct.
“A transaction can move quickly, so it’s critical to provide competent, accurate and comprehensive information,” NAR said.
Watch the full video for detailed guidance on reducing liability when making referrals.
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