14.20 Common Areas of Risk
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The Company policy is to be aware of the most common areas of risk and report any risk to the Broker or Manager as soon as one is identified.
The majority of risk management issues arise out of licensee conduct. Conduct that triggers a problem may be intentional, unintentional, or even negligent. The following list is given to point out the most common areas of risk relating to real estate brokerage. This list is not all-inclusive, but does reflect common problem areas.
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Contract preparation.
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Property condition.
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Property ownership.
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Failures to research, investigate, and disclose material facts.
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Conflicts of interest.
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Negligent advice.
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Trust fund handling.
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Kickbacks and RESPA violations.
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Referrals to vendors and third parties.
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Lack of appropriate supervision of affiliated licensees.
