When a tenant suffers damages, they may seek compensation from various parties, including landlords and property managers. But can a realtor be held liable for a tenant’s damages? The answer depends on the realtor’s role and responsibilities in the transaction.
Understanding a Realtor’s Role
A realtor’s primary duty is to facilitate real estate transactions, whether leasing, buying, or selling properties. They typically act as intermediaries between landlords and tenants, helping to market properties, screen tenants, and draft lease agreements. However, they are generally not responsible for the ongoing management of a rental property unless explicitly hired to do so.
When Can a Realtor Be Liable?
While realtors are not usually liable for tenant damages, there are situations where they could face legal exposure:
- Misrepresentation or Fraud – If a realtor knowingly provides false information about the property’s condition, amenities, or lease terms, they could be held responsible for tenant losses resulting from that misinformation.
- Negligence in Property Disclosure – If a realtor fails to disclose known hazards, such as mold, structural damage, or safety violations, they may be liable if the tenant suffers harm as a result.
- Unauthorized Promises – A realtor should never make guarantees about repairs, maintenance, or lease terms unless authorized by the landlord. If a tenant acts based on false promises, the realtor could be held accountable.
- Acting as a Property Manager – If a realtor takes on property management duties—such as collecting rent, coordinating repairs, or handling disputes—they assume additional legal responsibilities and potential liability.
How Realtors Can Protect Themselves
To minimize risk, realtors should:
- Clearly define their role in lease agreements and avoid involvement in property management unless formally contracted.
- Disclose known property defects and encourage tenants to conduct due diligence.
- Avoid making promises on behalf of landlords unless authorized in writing.
- Maintain proper documentation of all interactions and disclosures.
While realtors are generally not liable for tenant damages, they must exercise caution in their dealings to avoid legal exposure. Transparency, clear communication, and well-documented transactions can help protect realtors from unintended liability.