Smart Moves for Today's Legal Risks
In a market that is constantly evolving, risk management is not just a legal obligation but a business advantage. REALTORS and brokers alike face a growing list of legal concerns, many of which are accelerating with technology and shifting consumer behaviors.
Recent insights from NAR spotlight several areas where broker vigilance is key:
Crypto Scams Are Getting Smarter
Scammers are now posing as all-cash buyers using cryptocurrency language to lure agents into fraudulent deals. These tactics often include fake proof-of-funds, urgency around quick closings, and increasingly sophisticated fake IDs. Brokerages must train their agents to slow down and verify buyers through trusted financial institutions, especially when deals seem too good to be true.
MLS Policy Changes That Could Affect You
Two new listing practices, Office Exclusives and Delayed Marketing, are gaining traction. While they are designed to offer flexibility to sellers, brokers must ensure these listings still meet fair housing and transparency standards. Misuse or poor documentation could lead to both ethics complaints and legal consequences.
Other Risk Zones to Watch
Antitrust concerns in how listings and commissions are communicated
Wire fraud through spoofed email addresses or fake closing instructions
Copyright violations using AI-generated content without rights clearance
Texting and robocall issues related to TCPA compliance
Fair housing blind spots, especially with marketing language and social media
Independent contractor classification under legal scrutiny in several states
What You Can Do
Regularly train agents on fraud prevention and compliance
Review brokerage policies around MLS listing types
Double-check your legal templates and contracts with current law
Lean into professional indemnity insurance and cybersecurity measures
The bottom line is that legal risk is not just a fine or a lawsuit. It is your reputation and your client’s trust on the line. Stay current, stay cautious, and stay protected.
