Realtors and Professional Negligence in Canada: 3 Most Common Claims Made Against Them


There is a rising trend in the Canadian real estate business and it’s known as professional negligence.¬†Unfortunately, professional negligence benefits to no one and can often lead to lawsuits.

If you are a Canadian realtor, then we can’t stress enough the importance of being aware of the pitfalls of your profession. Each year, dozens of realtors in Canada let themselves become prey to professional negligence in one way in another. The results? Not so pretty.

Here are the 3 most common claims made against realtors in the country:

1. Misrepresenting the value of a property: Realtors want to sell houses, and they want to do it quickly. Yet some of them forget that lying about and misrepresenting the value of property is a grave offense in the professional world and is fair ground for their client(s) to sue them. Avoid being sued for misrepresenting the value of a property by staying true to the facts.

2. Not advising properly on a contract. As a real estate agent, there are certain things that you absolutely HAVE to disclose and problems that you have to let people know about before they become too big. Failure to do so before a client signs a contract can prove to be disastrous to you in terms of both finances and career.

3. Exaggerating the features of a property. Much like #1, this one can land you in great trouble. Exaggerating the features of a property does you no good and only leads to your client feeling betrayed when he or she moves into their new house. Each year in Canada, real estate agents must face the burden of defending themselves in court because of this. Don’t be among them by always remaining truthful and ensuring that you are properly covered under a real estate professional liability insurance policy.


Professional Liability Insurance/PLI

(Errors and Omissions Insurance)

  • Flawed professional advice and services that may have resulted in financial loss to the customer or client.
  • Protects professional individuals or companies from responsibility of the full cost of defending against a negligence claim and damages awarded in such a civil lawsuit.
    • Professional liability insurance covers the costs of judgments, settlements and legal defense.
    • Damages paid under a professional liability policy are typically financial rather than physical.