Any time the information we provide is inaccurate it is grounds for an error suit. An example of an error would be if I misquote the square footage of the home or the school zoning. Omissions is when material information is not divulged and itâ€™s a little trickier than an error because we, as agents, are to disclose defect information, but if a seller does not divulge the information to me, Iâ€™m not a general contractor / home inspector, so what defects should I reasonably be able to discover myself? I had a buyer one time that found out after moving in that there was trouble with the sewer drain. After the neighbors told him that it had been an on-going problem for years, he sued. Everyone.
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.