How Licensees Can Get Themselves into Trouble ~ Part 1 of 100
Practicing fast 'n loose real estate for a licensee is similar to running red lights; there will eventually be an expensive crash and the responsible party will be easily identified.
Licensees are often named in claims regarding permit issues. In Dan Melson's excellent article, Buying and Selling Properties with Unpermitted Additions, the classic case of the Multiple Listing Service showing 2,000 square feet, whereas, County records show 1,400 square feet. Sale after sale, the 2,000 square foot number will be past along by licensee after licensee, until one owner decides to remodel, legally with permits.
Shailesh Ghimire's post, Agent Gets Sued By Buyer After Home Loses Value, demonstrates how a licensee can get into trouble while obeying all the laws, and still be named in a lawsuit. Conversely, a licensee engaged in the longstanding illegal practice of "puffing," of a neighborhood or property ~ will lose a lot more than a lawsuit.
Pat Kapowich, "Negotiating Smooth Transactions Throughout The South Bay" SiliconValleyBroker.com