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REAL ESTATE BROKERS/COMPLIANCE REBUTTAL
Hello…. I just spoke with the managing broker where I am licenses as a realtor…..they are giving me some pushback about being the Realtor AND the loan officer on the same transaction….stating that although its ALLOWED that our E&O may not cover us donig this transaction…..is anyone else having this issue with THEIR real estate broker?
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3 Replies
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They are full of shit. Over 30% of our loan officers are dually licensed realtor and loan officers and have absolutely no issues. I will have some senior dually licensed realtor and loan officers chime in on this thread.
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Jean, I have never heard of that and I can guarantee you that is not the case. I will refer you to several of our dually licensed realtor and loan officers over the weekend or next week. Call or text me when you are available at 262-627-1965. My email address is gcho@gustancho.com.
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Real Estate Brokers/Compliance Rebuttal
Hello,
It seems you are struggling with your managing broker when you wear two hats, as in a Realtor and a loan officer in the same transaction. This scenario raises questions concerning compliance and the loan’s errors and omissions (E&O) insurance.
Key Points to Consider
Regulatory Compliance:
Most jurisdictions permit the dual licensing of practitioners in real estate and mortgage but usually require clients to be informed fully. You should be careful that you are not in breach of state regulations governing dual agency.
E&O Insurance Concerns:
Your broker’s worry about E&O coverage is understandable. It is very important to check your E&O policy for endorsement on transactions where you are in multiple positions. It could also be that such transactions are excluded in some policies, which could give rise to E&O coverage liabilities.
Brokerage Policy:
Individual brokerage policies appear to preclude them from considering the dual agency option. You should check your brokerage’s policy and the applicable state law governing your case’s particulars.
Transparency with Clients:
If you do move forward, ensure that you provide all parties to the transaction with the necessary information. Diffusion regarding clear communication can help lessen possible adverse implications and take care of expectations.
Seeking Guidance: Look at your E and O insurance carrier for guidance on risk and coverage possibilities. Besides, consulting a lawyer focusing on real estate law is a good option. Community Feedback If there are others in the community experiencing the same problems, sharing what they went through would be quite useful. It would be reasonable to ask this question in real estate forums or groups so that members who have been in that circumstance and found a solution can help. It can be challenging to juggle the responsibilities of being a Realtor and a loan officer where regulations and insurance are concerned. Constant interaction with your broker and clients and understanding your E & O policy will be important. Contact your business colleagues for assistance if further uncertainties or support is needed.