Avoid the Pitfalls: Risk Essentials for Real Estate Agents
More than half of Australian real estate professionals say client expectations have intensified in the past two years.
The property market has always been volatile, but since the pandemic, pressures have grown across several fronts.
There’s been a rise in:
Missteps in any of these areas can leave professionals open to legal action, even if unintentional. Insurance helps protect against these risks, but isn’t the be-all-and-end-all—prevention is key.
Even seemingly minor mistakes—think outdated property image or exaggerated rental income estimate—can trigger a claim.
However, most of these risks are manageable with the right strategies in place.
Real estate businesses can reduce their exposure with these day-to-day practices:
Online platforms, such as PropertyMe, Console Cloud, and PropertyTree are used widely by real estate agents and landlords in Australia to create an accessible, single source of truth about each property. Using such platforms streamlines routine tasks like rent collection and maintenance tracking, saving time and reducing errors. They also improve tenant communication, offer real-time insights for better decisions, and boost financial tracking—leading to greater efficiency and tenant satisfaction.
As well, you might already be (or considering) using generative artificial intelligence to draft and/or finesse your marketing. The most accurate Gen-AI, Perplexity (according to TechRadar), says such platforms can help Australian real estate agents write better, truthful, and compliant marketing copy by:
Underquoting, failing to disclose building defects, or vague language in property ads can land agents in hot water.
The Australian Competition & Consumer Commission (ACCC) states that all real estate advertising must be factual and not misleading. Don’t engage in puffery or use vague claims such as ‘best street’ or ’huge development potential’ without documentation to back it up.
If you’re not sure if your marketing copy is in dodgy territory, check the ACCC’s advertising and selling guide. State-government-based resources such as from your Fair Trading or Consumer Affairs departments can also help. Plus, Property Management Virtual Assistant offers its update on how to spot and avoid misleading real estate advertising.
Being transparent is best practice and a compliance requirement.
Beyond proactivity, the right insurance coverage is still a key part of risk management.
Professional indemnity covers you for legal costs and compensation if a claim arises. Public liability protects against physical injuries—like a client tripping at an inspection—and cyber cover is increasingly vital with online scams targeting the real estate sector.
As your broker, we’ll review your policies, assess new risks, and make sure your cover grows with your business. Whether you’re managing rentals or leading a team, we’ll help keep your protection in step.
Let’s get ahead of any claim before it happens.
Article Supplied by OneAffiniti
Photo by Orthosie