Question

An out-of-state broker has a single listing in MS. The listing is desirable and expected to sell within a couple of months. Does the out-of-state broker need to carry errors and omissions insurance?

Answer 1

An out-of-state broker with a single listing in MS should carry errors and omissions insurance to protect themselves from potential liability.

Step-by-step explanation:

An out-of-state broker who has a single listing in MS and expects it to sell within a couple of months should carry errors and omissions insurance.

Errors and omissions insurance (also known as E&O insurance or professional liability insurance) provides coverage for claims made by clients or third parties for damages resulting from a broker's negligence or errors in their professional services. It protects the broker against financial loss if they are sued for mistakes or omissions that occur during the course of their real estate transactions.

In this case, even though the broker is out-of-state, they are actively engaged in a real estate transaction within the state of MS. Therefore, it is recommended that they carry errors and omissions insurance to protect themselves from potential liability.