I am writing this blog because I came across something today that shocked me. I was reviewing a Master Listing Agreement with a massive nation wide company, who will go unnamed.
In one of it’s paragraphs it read….
“Listing Broker additionally agrees to indemnify and hold harmless the indemnitees for and from all claims brought by, through or under owner and EXPRESSLY INCLUDING WITHOUT LIMITATION THOSE CLAIMS PRETAINING TO OR ARISING FROM NEGLIGENT OR WILLFUL ACTS OF OMISSIONS OF (unnamed company).”
In short, they are saying, the Listing Broker agrees to indemnify or secure them from hurt, loss or damage when they commit negligence or willful acts of omissions.
Just so we are clear, the vast majority of insurance companies do not cover negligence or willful acts of omissions so, in other words, you, the listing agent, your broker are responsible for paying legal fees, judgments or whatever else they incur if they are ever sued, even if they are clearly in the wrong!
What scares me the most, the Project Manager I was speaking with informed me, it’s just they way it is and since they have agents signing up left and right, it most likely isn’t going to be amended because, everyone is agreeing to this.
READ YOUR AGREEMENTS AND HAVE THEM REVIEWED BY AN ATTORNEY. In my opinion, this is a horrible way to do business. I don’t know how you can get around it but, I am not doing business with anyone who has this type of agreements, it is just dangerous!
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