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According to the DRE regulations, the broker is directly responsible for any real estate transaction that his/her agent completes.
To cover possible expenses connected with this responsibility, REeBroker collects the Risk Management fee for each closed transaction.
This fee includes the costs of E&O insurance, legal advice and fees, settlements, judgments, claims, litigation, and other risk-management costs.
All REeBroker agents and associated brokers transactions (residential 1-4 units) are covered by the E&O insurance policy.
There is deductible on E&O insurance. However, the designated broker will take responsibility to pay this deductible.
Our agents and associated brokers are not responsible for paying the deductable on E&O insurance .
For a regular (residential 1-4 unit) real estate transaction up to $1.0 million, the Risk Management fee is $135 per closed transaction.
There is an additional $13.50 per every Hundred Thousand Dollar price increment over $1.0 million.
For commercial, income properties and unusual situations, where potential risk is higher, the Risk Management fee may be different and is adjusted according to that transaction.
When an agent SELLS his or her own property (when the agent’s, agent spouse’s, agent company’s or agent trust’s name is on title),
there is additional E&O insurance required. The Risk Management fee for selling agent-owned property is $335.
E&O Insurance Policy
E&O Insurance Declarations
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