An agent making the claim they are the "Best Atlanta Real Estate Agent" is one thing, and an agent making the claim, "...Foreclosure Expert" are two very different types of claims. Everyone in the real estate industry... reads the claims of agents and brokers claiming they are "Short Sales Expert!" "Foreclosure Specialists...ad nauseum..." and we take take them with a grain of salt! So many agents are doing this these days. A lot of agents using terms like "Consultant, Adviser, Relocation Expert, Buyer Advocate and Distressed Property Specialist!" So far so good? The problem with this is that they have never sold a home or advised one client. To a client that is relying on them for assistance and guidance in the most expensive transaction in their life...what if that advice is totally wrong? I'm not a lawyer , but you have to believe in resentments, and righting a wrong. Once unsubstantiated claims are made in print...they go a little beyond creative marketing and may offer proof of fraud for an unhappy client. In some states even a "Pen" with printed information on it is considered advertising! I read an article along time ago that said in downturns, lawsuits increase against agents. Be careful what you claim!
If an agent is making claims, they better be able to back them up. The term 'consultant' has a ring of authority in it, but what if the sound is hollow? In some states, terms like financial adviser or consultant may have to be licensed. But what if an agent was never consulted for anything....yet makes these claims? An angry client can research your background, they can save your business cards, and print dated pages from your website where those claims are made. If they file a lawsuit after they find you've never done anything as claimed in your ads...they may want justice. FYI...If you are sued for fraud, it is my understanding that fraud is not covered by E&O, and if your E&O does not cover it... you are on your own. Your own personal assets, bank accounts, properties, and finances may be at risk.
The rush to make money in real estate is blinding many to cross the line where it is not their advertising that is in question, but their manipulation of an unknowing victim. Even if you win your case if sued, the cost of a long protracted legal fight can crush you financially, wear you down mentally and rob you of years of your life.
In Georgia the state has pretty much taken the position, that we cannot practice law. Real estate agents, are not in a position legally to advise anyone on whether they should do a short sale and how to do it. That is reserved for the practice of law because of all that is involved.
An Example: Even though we are licensed under the laws of a state to sell real estate. I may speacialize in residential real estate. I could legally sell commercial real estate, but since I have so little understanding of the the workings of commercial real estate..I will not sell it. I would place my clients and their interests at risk if I offer advice and guidance in an area I know nothing. I will refer my clients to someone that has experience in those areas and can best assist my clients.
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