Mistakes to Avoid if You Are a Licensed Real Estate Broker 

Anyone who has acquired a real estate brokerage license knows the strict ethical and legal requirements that guide how you do business. However, even experienced real estate brokers make mistakes. 

A quick review of some of the most common mistakes licensed real estate brokers can help you ensure your business dealings are legally sound – especially if it’s been a while since you reviewed your brokerage training materials. 

1. Forgetting to Update Listings

One of the most common mistakes made by real estate brokers is a failure to maintain an updated listing status in the MLS. Active listings must be promptly updated to reflect changes like when a listing goes live, when an offer is pending, or when a property is under contract. 

Failure to update a listing within the required period is likely to be quickly noticed by the potential buyer or seller – and it’s also one of the most likely violations to be reported.

2. Violating Confidentiality

Strict rules regarding confidentiality bind real estate brokers. Never disclose information about a client without their express consent, and it’s safest to confirm the consent in writing, like through email. 

Confidentiality is most often violated in two ways – by relaying information about a client without realizing that such information is protected by confidentiality rules or through a data breach. 

Don’t share confidential information through email, make sure your files are protected, and regularly change your online passwords to reduce the risk of a data breach.

3. Failing to Give Prompt Notice 

Brokers are legally obligated to give notice on many points. Some of the most common include:

  • Damage was done to a property during a showing
  • Injuries sustained by a client during a showing
  • Property inspection deadlines

You can face legal consequences if you fail to give notice on required matters within the designated period. Stay informed about what situations require you to give notice, and be diligent about doing so correctly and promptly.

4. Breaching Contracts

A breach of contract can happen in countless ways, which is why it’s one of the most common mistakes real estate brokers make. A breach of contract often leads to legal action. 

Common examples of a breach of contract include: 

  • Guaranteeing a closing date
  • Guaranteeing a sale
  • Failing to market a property per the agreement
  • Failing to show a house to an interested buyer
  • Failing to disclose higher offers to a seller

Breach of contract can bring serious legal trouble and even result in the loss of your livelihood if your real estate brokerage license is revoked. If a contract breach occurs, a license defense attorney can help with brokerage license defense. 

A License Defense Attorney Can Help with Brokerage Mistakes

A real estate broker who violates the rules and ethical code of conduct can bring expensive legal consequences. If you’ve made a mistake, don’t sit back and hope it isn’t noticed. 

A consultation with a license defense attorney can help at any stage, from offering advice on moving forward to defending you in legal proceedings. 

Contact S J Harris Law to arrange a consultation with an experienced California license defense attorney today.  

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When dealing with these complex issues, you need legal representation that has a long track record of success in these types of cases. Scott Harris and the rest of our team at S J Harris Law will be ready to help you pursue any option available that allows you to keep your license and continue working, no matter what industry you are in.


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