Written by Victoria Munson
Reading Time: 3 min
Property access is always a hot topic on the Illinois REALTORS® Legal Hotline and this article takes a closer look at the issue of buyer’s agents and who can accompany home inspectors on a seller’s property. It will also answer questions about the need for errors and omissions insurance.
Q:
As a buyer’s agent, must I accompany the home inspector to the property?
As the buyer’s agent, you should reach out to the listing agent to determine what type of access the seller will allow and then schedule such access accordingly.
- Will the seller allow the home inspector to enter the home unaccompanied?
- Will the seller allow the buyer to attend the home inspection?
Obtain clear and specific directions from the listing agent as to who does (and does not) have access to the seller’s property. Keep in mind, the buyer’s agent owes duties to the buyer’s client, so the buyer’s agent should assess all the facts and take care to serve the buyer’s interests.
As the listing agent, what direction has the seller provided to you concerning access to their property? It will be beneficial to get clear guidance from the seller about their specific conditions for property access.
- Will they allow an inspector, or an appraiser, access without an agent present?
- Do they want the agent to be there with the inspector or appraiser the entire time?
- Are they OK with the agent simply unlocking the door for the inspector and coming back later?
- Also, what if the buyer and several of their family members want to accompany the inspector onto the property?
The seller may have some concerns, understandably so, about several people roaming around their home unattended. Also, consider that adding people to the inspection without the seller’s specific permission could prompt an unauthorized access claim under the Code of Ethics.
For additional information concerning the importance of obtaining proper access to properties, see our Unauthorized Access video.
Q:
Must I carry errors and omissions (E&O) insurance?
It is not required under the Real Estate License Act or the Code of Ethics to carry an errors and omissions insurance policy. However, we would strongly encourage our members to do so. Agents should review their office policy and their employment agreement or independent contractor agreement to see how it addresses E&O insurance. It may call for the agent to participate in the brokerage’s group insurance or it could allow the agent to obtain insurance individually. A common question is what happens if an agent has paid for a full year of E&O insurance, either to their brokerage or directly to the insurance carrier, and then halfway through the year the agent changes brokerages. Does the agent now get a refund of the premium that they have already paid? Agents, and brokerages, should consult with their insurance carrier to determine what occurs in those situations. This is always best done up front, as opposed to when the parties are in a situation where they are parting ways.
Q:
Where can I learn more about the pending NAR litigation and find resources and information to share with my clients?
Check out the NAR Litigation page on our website. Learn more about the Seller Class Action Litigation including resources and information, potential outcomes and what REALTORS® can do. These are members-only resources so you will need to login to view.
About the writer: Victoria Munson is the Illinois REALTORS® Legal Hotline Attorney.
