Attention listing agents: ‘Buyer beware’ won&...

Unlike a car salesman or a furniture retailer, Darryl Davis writes, agents operate under a license issued by the state. That license comes with fiduciary duties.

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There’s a dangerous myth circulating among some real estate professionals, and it’s time we address it head-on. That myth is the belief that the phrase “buyer beware” — or the practice of selling a property strictly “as is” — somehow shields agents from liability.

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Too many agents fall into the trap of thinking, “If I tell the buyer it’s their job to do due diligence, I’m covered.” Let me be crystal clear: that mindset is wrong, risky and could cost you dearly in court or with your state licensing board.

Why? Because buyer beware is a doctrine that applies to salespeople. And you are not just a salesperson. You are a licensed real estate professional. That distinction changes everything.

Why ‘buyer beware’ doesn’t apply to you

Unlike a car salesman or a furniture retailer, you don’t just facilitate a transaction; you operate under a license issued by your state. That license comes with fiduciary duties, higher expectations, and ongoing accountability through continuing education, E&O insurance, and oversight from your licensing department.

I’ve gone so far as to personally call several state licensing departments and ask a direct question: If an agent repeats information from a seller that turns out to be false, can the agent shift liability to the seller?

The answer I got, time and time again, was no. Even if you misrepresent something by accident — even if the homeowner was the one who gave you the information — you can still be held liable.

Why? Because in the eyes of the courts and licensing boards, you are the professional. You are expected to know more than the average consumer and, therefore, verify, not just pass along.

This is the critical difference between a real estate professional and a traditional salesperson. Other industries don’t require licensing. They don’t require continuing education. They don’t demand fiduciary loyalty. But we do. That’s why hiding behind “buyer beware” is not only ineffective, but potentially dangerous.

What the courts expect from you

The legal system doesn’t see you as a neutral bystander in a transaction. Instead, they see you as:

An advisor with specialized knowledge.
A fiduciary who owes loyalty and care to your clients.
A professional who should know better than to pass along unverified claims.

If a buyer later discovers that the lot size was overstated, the taxes were misquoted or the finished basement doesn’t have a valid Certificate of Occupancy, who do you think they’ll come after first? The seller, who’s just a homeowner? Or you, the licensed professional with insurance and a license on the line?

Spoiler alert: it’s you.

Practical steps to protect yourself and elevate your service

The good news is that you don’t have to live in fear of liability. By taking proactive steps, you not only reduce your risk but you also deliver a higher level of service that sets you apart from the average agent.

Here are some key practices to incorporate:

Verify property taxes. Always pull the most recent tax bill from the municipality. Don’t rely on what the seller “thinks” they pay.
Check lot size and boundaries. Look at the tax map, and if necessary, order a survey. Make sure fences, sheds and driveways are actually within the property lines.
Confirm permits and Certificates of Occupancy. That beautiful addition or finished basement may not be legal. Confirm that paperwork is in place before marketing it as a living space.
Double-check utility systems. Pools, fireplaces, septic systems, and wells all come with regulations. Make sure they are working, legal, and properly permitted.
Order reports in advance. Consider marketing with flood zone reports, zoning confirmations or radon tests already in hand. Buyers will appreciate the transparency.
Document everything. Keep records of what you’ve verified, what you’ve disclosed and how you’ve communicated it to both your client and potential buyers.

Taking these steps doesn’t just keep you out of trouble — it helps you stand out as the professional you are.

Elevating perception at the listing appointment

Now let’s go beyond risk management. One of the most powerful ways to differentiate yourself from discount brokers and part-time agents is to educate homeowners on this very distinction between you and traditional salespeople.

At your next listing appointment, explain it like this:

“Unlike salespeople in other industries, I am a licensed professional. My obligation isn’t just to make a sale — it’s to represent you with fiduciary care and to protect you from liability.”
“Other sales industries don’t require continuing education. I’m required to keep learning every year to stay compliant with state law and best practices.”
“I don’t just sell homes; I advise, I verify and I protect. That’s why you’re hiring me, and not just putting a sign in the yard yourself.”

This conversation does two things. First, it elevates you in the eyes of the homeowner — you’re not “just another agent,” you’re a professional advisor.

Second, it creates a clear separation between you and the discount broker who claims to deliver “full service” at a fraction of the fee. When homeowners understand that your service is based on fiduciary responsibility and professional standards, they see your fee as an investment in peace of mind.

Why this matters beyond your business

Here’s the bigger picture: this isn’t just about protecting yourself or winning listings. It’s about reshaping how the public perceives our entire industry.

For too long, real estate agents have been lumped in with salespeople. But we are not salespeople. We are:

Consultants who guide clients through one of the most complex transactions of their lives.
Advisors who help protect families’ financial futures.
Coaches who prepare buyers and sellers for what to expect and how to succeed.
Professionals held to higher standards — just like attorneys, doctors and accountants.

This is the message we need to get out to consumers everywhere. It’s time to elevate our industry in the public’s eyes. That’s a bigger conversation — and one I’ll be tackling in depth in another article — but it starts with you, in your daily interactions, refusing to hide behind “buyer beware” and instead stepping fully into your role as a fiduciary professional.

The bottom line

The phrase “buyer beware” is not your shield — it’s a trap. It may apply to salespeople, but it does not apply to you. You are a licensed real estate professional, and with that license comes higher responsibility, higher expectations, and yes, higher accountability.

Protect yourself. Elevate your service. Use this distinction not only to stay out of lawsuits, but to stand taller at every listing appointment and to help shift the perception of our entire industry.

Because when you embrace your role as a fiduciary, not a salesperson, everyone wins — the client, the consumer and the profession itself.

Darryl Davis is the CEO of Darryl Davis Seminars. Connect with him on Facebook or YouTube.

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