Mandatory E and O Insurance

In a Montana Real Estate newsletter in July of 2000 there was an article on Montana considering Mandatory E and O insurance. Consumers should be away of this and ALARMED by this.

I have had E and O insurance from the beginning or my real estate Broker career. I did this by choice because I honestly thought it would be a good thing for my customers, my real estate consumer. I thought my E and O, Errors and Ommission insurance would protect you from something I did not know and that if I did know that it was fraud and you could "go after" me personally. In the begining of my real estate career I was told that E and O insurance would protect for Errors and Ommission but not fraud. It seems to me Now that E and O insurance really protects the Realtor from Fraud, and nobody really cares about what the left out by error or simply omitted on purpose.

I now know that the Intention of E and O insurance is to Protect me from the Real Estate consumer and their “frivolous lawsuits”. This insurance is to make darn sure that the Realtor can lie, commit silent fraud, forget to, or deliberately not disclose, make an “honest” mistake, not tell of latent defects in a home that they know exist, not tell you of easement issues, water access issues or other things the Realtor knows and simply leaves out.

I ask why would the State of Montana make E an O insurance Mandatory knowing that this type of insurance protects the Realtor and Not the Real Estate Consumer? I wondered if The State knew what E and O insurance was about, Really. And in finding this old newsletter I see that Yes Indeed the Montana Real Estate Commission, Board does know that this insurance protects the Realtor from the Consumer and still it is on the table to be a Mandatory insurance? Why?

This insurance enables the Realtor to FIGHT the real estate consumer and to defend lies for very little if any money out of their pocket. While the real estate consumer that most often has a legitimate claim against the Realtor cannot afford to fight or not fight as long as the Realtor can afford to fight.

Even in cases when the consumer has proven fraud against the Realtor and the real estate Seller, the Realtor will keep the case going with many different experts and drag out the question and answer game called “discover” for months to years until the consumer that is the victim simply give up and chooses peace over the money they deserve.

Do States that Require mandatory E and O insurance get some sort of kick back for recommended or making ONE particular insurance company the “Mandatory” choice. Also this is just one more thing that should violate E and O insurance. So why do some states MAKE Realtors protect themselves from the consumer.

Probably because with the Realtor having E and O insurance the Real Estate Consumer will most likely LOSE their “frivolous” lawsuit. And therefore NOT exposing the Realtors as Unethical or Somehow dishonest. Without the Cases or the Losses in the Courts, on the law books and in cases on the internet for all to see it then appears that Realtors are possibly Ethically across the board when in fact it is the E and O insurance that gives this illusion.

It is said that one disadvantage of Mandatory E and O insurance is that it is more government regulation in real estate. Well the way I see it, other than completing continuing education, there is No Real government regulation or even a concern for the public safety or consumer protection in real estate. In this the article suggested E and O would signify Over Regulation, but the way I see it there really is no regulation or watch dog, per say over the real estate companies activities.
Of course the “Realtor Board”, “the Association of Realtors” want mandatory E and O insurance in every state. The more agents that have the insurance the more consumers lose and the better the association of Realtors looks. Find out Wayyyyy more about How the Real Estate Industry is Seriously Hurting the Real Estate Consumer. Subscribe to my Confessions of a Realtor Blog at www.SavvyBroker.com