BROKER RISK MANAGEMENT
WEEKLY PRACTICE TIP
Seller Obligation to Protect Personal Property
Q: I am a listing agent and have a very upset seller. I held an open house last Sunday that was very busy. I normally accompany all visitors to keep an eye on them, but one group split up for a minute or two. After the open house, the seller called me and said that some jewelry had been taken from her dresser and a laptop computer is missing from the bedroom as well. Seller is now claiming that I am responsible and wants me to pay more than $3,000 for the cost of the missing jewelry and computer. We filed a police report, and I described the parties whom I am certain took the items. But, I don’t feel that I should have to pay. Can I be sued by the seller?
A: If you were sued, the venue would be Small Claims Court in this case (a claim less than $7,500) and facing an unpredictable outcome. Also, the seller can file a claim with his/her homeowner’s policy, but many homeowners do not want to do that.
The biggest loss in these cases is the trust of the seller – and it often causes such hard feelings that the listing is cancelled, and/or the agent pays some money to make the seller feel better.
But, the best approach is to not have it happen in the first place. Here are some preventative tips:
PRACTICE TIPS:
1. Every time you take a listing, make it a habit to have a discussion with the seller that they MUST secure all personal possessions which are valuable and/or could be easily pilfered. This includes jewelry, electronics, prescription drugs, guns and precious knick-knacks, antiques, etc.
2. When having this discussion, have the seller sign one of the following two documents while pointing out the necessity of taking precautions:
A: CAR Seller Advisory (ZipForms form SA) – making a note of paragraph 4.C; or,
B. The attached “Acknowledgement of Seller’s Duty to Protect Their Property”
3. Advise sellers to discuss their homeowner’s insurance with their insurance agent to make sure that personal property and jewelry are covered.
4. Before every open house, do a survey to see if there are valuables left about. Secure them in a safe place until after the open house and remind the seller to be careful with their possessions.
5. Attempt to accompany all prospective buyers through the property. If it promises to be an extremely busy open house, consider having a second agent or host/hostess to accompany visitors. Some agents even allow only one group at a time, and insist that the group stay together.
6. Be cautious during brokers’ open houses, too. Not all agents are honest.
7. If the home will have a lock box, remind sellers that agents and prospective buyers could arrive at any time, so they must be careful not to leave valuables out in the open at any time.
8. If the property has tenants, also remind the tenants that they should take steps to secure their personal belongings when their rental unit is being shown.
DO NOT FORWARD TO CLIENTS. This Weekly Practice Tip is for the exclusive use of clients of Broker Risk Management and their agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices.
© Copyright Broker Risk Management 2010 08/27/10
[BROKER NAME]
Acknowledgment of Sellers’ Duty to Protect Their Property
While your property is marketed for lease or sale, potential buyers, other brokers, inspectors, and other people will have access to your property. You should make sure that your property is safe for such visits. To that end, you should take precautions to protect your property so that it will not be damaged, lost or stolen.
It is recommended that jewelry and other valuables be placed in a safe deposit box while the property is being marketed for lease or sale. If you choose to keep any of your valuables in your property, we recommend that they be kept under lock and key so that no one but you has access to them.
It is recommended that you consult your insurance company to be sure that your insurance coverage is adequate during the listing and escrow period for any losses which may occur including, but not limited to, personal injury, property damage and theft. Your policy may not provide coverage if the property is vacant.
Your real estate company will do everything possible to make the lease or sale of your property as convenient as possible for you; however, we are not responsible for your property or your insurance coverage. That is why we are requesting that you take the necessary steps to protect yourself.
Acknowledgment of Receipt:
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Seller Date
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Seller Date