A New Mexico court ruling offers an important reminder to brokers: Don’t make a vendor recommendation unless you’re sure the vendor is reliable, licensed and insured. In this case, after a broker-recommended contractor accidentally destroyed the sellers’ home, the court found the broker negligent in his duty of reasonable care. Read in REALTOR® Magazine.
https://www.nar.realtor/magazine/real-estate-news/law-and-ethics/always-vet-your-vendors
SCR Broker Liability Limitation:
11. BROKER LIABILITY LIMITATION: Buyer agrees Broker provided Buyer with benefits, services, assistance, and value in bringing about this Contract. In consideration and recognition of the risks, rewards, compensation and benefits arising from this transaction to Broker, Buyer agrees that he shall pay Broker’s attorney fees and that Broker, shall not be liable to Buyer, in an amount exceeding that Broker’s Compensation by reason of any act or omission, including negligence, misrepresentation, errors and omission, or breach of undertaking, except for intentional or willful acts. This limitation shall apply regardless of the cause of action or legal theory asserted against Broker, unless the claim is for an intentional or willful act. This limitation of liability shall apply to all claims, losses, costs, damages or claimed expenses of any nature from any cause(s), except intentional or willful acts, so that the total liability of Broker shall not exceed the amount set forth herein. Buyer will indemnify and hold harmless and pay attorneys’ fees for Broker from breach of contract, any negligent or intentional acts or omissions by any Parties, Inspectors, Professionals, Service Providers, Contractors, etc. including any introduced or recommended by Broker. Buyer agrees that there is valid and sufficient consideration for this limitation of liability and that Broker is the intended third-party beneficiary of this provision.
This information is only accurate as of 10/30/24. You must contact SCR for updates and changes to this information after 10/30/24 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.