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rokerages face numerous risks to their businesses, including copyright infringement, disclosures, and breaches within buyer representation agreements. Attorneys at the 2025 REALTOR Broker Summit in Louisville, Ky., emphasized the importance of being aware of these risks and taking steps to mitigate them.

    When a buyer signs an exclusive agency representation agreement with one brokerage but ultimately closes with another agent, brokerages must decide whether to pursue legal remedies or accept the situation. Jace White, general counsel for the Oklahoma Association of REALTORS, advised brokers to have a plan in place for handling such scenarios and to discuss it with their agents beforehand.

    Other risks mentioned by attorneys at the summit include seller impersonation fraud, copyright infringement, and liability for contractor recommendations. Maria Flaks, senior director of legal affairs at Northern Virginia Association of REALTORS, warned that brokers may be liable when recommending contractors who are unlicensed or uninsured.

    To safeguard their businesses, brokerages should educate agents about potential risks and provide them with procedures to follow. This includes having transaction checklists, process flow charts, and a system for reviewing documents carefully. Thorough documentation is also essential, including texts and emails outside of the case file.

    Attorneys at the summit mentioned other questions coming into their legal hotlines, such as how to handle unrepresented buyers at open houses, dual agency, independent contractor agreements, and more. By being proactive about identifying risks and taking steps to mitigate them, brokerages can protect themselves and their agents from potential liabilities.