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Q: “I heard there was a case recently that found an agent liable for negligence due to damage caused by an unlicensed contractor that the agent recommended. Is this true?”

A: Yes, this really did happen. However, it was in New Mexico. So, you may be wondering why it is worth mentioning. REALTORS® are considered the source of the source. Your opinion on vendors (and everything else real-estate related) is taken to heart by your client. That is part of your value.

In short, the facts of the case were that the buyers had a REALTOR® (in the capacity of an independent contractor) helping them purchase the home. An issue with the roof was found, the buyers could not find a roofer, and their agent volunteered to “take care of it.” The roofer the agent recommended was not licensed, they started a fire and damaged the house.

The court, among other things, found that even though the REALTOR® was working as an independent contractor for the buyers, they still owed a duty of reasonable care. In Virginia, even working in an independent contractor relationship, you still owe a duty of ordinary care.

What does this mean to you? It’s simple. If you are going to recommend anyone, regardless of any shield in liability or legal defense, you should take the time to make sure they are at least qualified and licensed.

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