Real estate agents (and not the seller of a property) are often sued when a statement about a property turns out to be false. This includes where the agent is simply passing on what the seller told them. Why? Because the law, circumstances and insurance make it easier to sue the agent rather than the seller. Reasons agents are sued (rather than the seller) may include:
- Often sellers do not have much money after repaying their mortgage;
- The seller does not have insurance to cover such liability – while almost all agents have this insurance; and
- The law makes it easier to recover the money from agents than from the sellers.