REIV Information Officer Jim Lourandos

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One day in the working week of an REIV Information Officer. By Jim Lourandos

From time to time, I receive calls from our Members who seek advice on real estate matters which may have the potential to escalate to a dispute in court, or a claim being made on our Member’s professional indemnity insurance policy.

Your initial statutory obligation under the Estate Agents Professional Conduct Regulation 2018 requires your agency to establish an estate agency complaint handling and dispute resolution policy to address complaints or grievances received.

When drafting an email or responding to a communication received in writing, and you have a hunch that the matter at hand may end up in a dispute where a claim may ensue, consider your response carefully. In particular, statements or assertions which may be construed as an admission of liability, for example saying “I’m sorry”. Do not cut a deal by offering a discount or concession for the problem to go away.

It is common for professional indemnity insurance policies to contain provisions relating to the defence and settlement of claims, which provide that insured agree not to settle claims, make admissions, offer payments or assume contractual obligations without their insurer’s

Do not cut a deal by offering a discount or concession for the problem to go away.

prior consent. Therefore, an admission of liability may result in a breach of the claims conditions of a professional indemnity insurance policy.

You may consider an alternative approach: • “I’m sorry for the way you feel”, or • “We regret you feel this way”

It is important you read your insurance policy and comply with its provisions accordingly. If unsure, contact your insurer or your broker.

In the event that a claim is made against you, or you become aware of circumstances which may give rise to a claim, please notify your insurer and your broker immediately. Further, you should avoid: • Discussing the matter with, or providing documents to other parties • Making any admissions or concessions • Revealing that you have insurance which may respond to the claim or potential claim • Agreeing to respond by any particular timeframe (if a response is required)

For those of you who are insured under the Aon Real Estate Professional Indemnity Scheme, you can notify any claims or potential claims by: • Calling the Carter Newell Lawyers Real

Estate Hotline on 1800 624 264; • Emailing cpm@carternewell.com; or • Completing an online claim notification form at www.carternewell.com

If you become aware of circumstances which may give rise to a claim or a claim has been made against you, it is essential that you preserve your file. This includes: • Printing off all electronic diary notes and photos • Printing off all emails, file notes, correspondence • Drafting a chronology of events • Taking signed statements from key staff • Do not make any admissions of liability • Do not hand over any documents without seeking advice

With regards to the applicable excesses, the insured would need to be aware of whether the excess is ‘cost inclusive’ or ‘cost exclusive’. The definitions are below:

“Costs Exclusive Excess”: This means that you will not pay any excess towards the legal and defense costs, but will only pay the amount of the excess towards the settlement of any claim.

“Costs Inclusive Excess”: This means that the excess is applied immediately to the legal, defense costs, and settlement of any claim.

It is recommended that you check your policy with your broker or insurance provider.