In June’s REIX support: Know the steps to follow in the face of legal action blog post, we provided a step-by-step approach for subscribers to follow if they find themselves facing any sort of legal action.
When to reach out to REIX?
The moment you have any inkling you have made an error in a transaction or if your client or another party in that transaction is threatening to take legal action.
Before something becomes a “claim” it starts as an “incident.” REIX deals with hundreds of incidents in a typical year, many of which only involve the REIX providing sound advice to our subscribers and walking them through their next steps to avoid it turning into a claim. This is a big part of the support REIX offers our subscribers.
Choosing not to report can be risky and costly
In some cases, it could be tempting not to report a potential claim, hoping it might go away or resolve itself. The risk of that?
Not reporting a claim to REIX is actually a breach of REIX’s policy condition, and choosing not to report a claim ASAP may result in REIX not being able to respond to the legal action in a timely manner, or may result in you being left to handle the matter yourself.
Delaying reporting may also result in potential costs for you, from legal costs of having to retain a lawyer, to paying for judgment yourself.
The bottom line: If you find yourself in a situation where you are expecting to hear from an unhappy client or their legal team, let REIX know in writing asap.