What interesting questions you pose!
The biggest issues Realtors encounter is what might be broadly defined as "truth in advertising" and "equal opportunity housing".
Space does not permit, however I'll give you a few choice examples:
"Totally remodeled" Really? to whose standards?
"New" appliances - never been used?
"Hardwood floors" - wood floors, or hardwood floors
"Walking distance to school" what if the buyer is confined to a wheel chair?
The list goes on We live in a very litigous society, so a well-trained Realtor can protect the seller from many errors that might result in legal entanglements.
If the Realtor writes "beautiful kitchen" instead of "totally remodeled kitchen", the buyer is not likely to sue the seller if the kitchen is not "beautiful enough"...if the kitchen is not totally remodeled, then they might have a case.
Common E&O Exclusions per E&O insurance facts:
Claims resulting in dishonest or criminal acts by insured
Claims associated with polluted property
Claims against you if you cause bodily harm or death to another person (Too bad. I can't tell you how many times I've wanted to strangle a client. I kid, I kid. Kinda.)
Claims arising from damage you cause to someone's property
Luckily, I've never been sued. KNOCK. ON. WOOD.
Most E&O policies have a list of exclusions for coverage. Mold and other environmental issues are big ones for exclusion, and obviously, fraudulent / criminal acts, discrimination, mishandling of funds, stuff like that we are totally on our own.
Itâ€™s common practice here to have a blurb in MLS remarks that all information is believed to be accurate, but must be verified by the buyer.
When I originally asked the question it was because agents kept using it as a "sales tool" for not going FSBO.