Our Real Estate Professional Liability Defense team represents real estate professionals and related service providers in high-stakes civil litigation across a wide range of claims. We have extensive experience defending real estate brokers, agents, and REALTORS® against malpractice and breach of duty allegations stemming from residential and commercial transactions. Our attorneys understand the complexities of real estate law and the nuances of professional standards, allowing us to craft targeted defenses that protect our clients’ reputations and livelihoods.
Beyond traditional real estate professionals, our practice extends to the defense of those who play critical roles in facilitating transactions. We represent title agents, abstractors, surveyors, mortgage brokers, appraisers, and title insurance companies when their work is challenged in court. These professionals often face claims involving alleged negligence, misrepresentation, disclosure errors, and contract disputes—areas where our team has a strong record of achieving favorable results.
Our approach is proactive and strategic. We work closely with our clients and their insurers from the earliest stages of a claim, often helping to resolve matters through negotiation or early motion practice. When litigation is unavoidable, we bring deep courtroom experience and an unwavering commitment to defending our clients through trial and appeal, if necessary.
We know that for professionals involved in real estate, litigation can be both financially and professionally disruptive. That’s why we prioritize efficient case management, cost-effective strategies, and clear communication throughout the life of a case. Our goal is always to protect our clients’ interests while minimizing the impact on their business operations and professional standing.
With a team that blends deep legal knowledge and real-world insight into the real estate industry, we are trusted counsel to professionals facing complex and often emotionally charged disputes. Whether the matter involves a multimillion-dollar commercial deal or a single-family home transaction, our attorneys bring the same level of dedication and attention to detail.
We are proud to be a reliable defense partner for real estate professionals and the businesses that support them. When your work is under scrutiny, you need a legal team that understands the stakes—and how to win.
Results
One Month – 4 Outstanding Results! Aaron Moore Obtained Four Successful Results on Behalf of Clients in the Span of One Month
Defense verdict on behalf of a real estate broker and agent. The plaintiffs, homebuyers, claimed that the sellers’ broker and agent were liable to them for the value of fixtures that were taken by the sellers when they vacated the property, which were alleged to have been included in the sale. At a bench trial, the judge determined that neither the broker nor the agent could be held liable to the plaintiffs because the representations regarding what was included in the sale were made by the sellers. Supreme Court affirmance of dismissal of a complex legal malpractice lawsuit. Aaron and Carol Vanderwoude obtained a Delaware Supreme Court affirmance of the trial court’s dismissal of a complex legal malpractice claim. The plaintiffs, seven affiliated companies and their owners in the business of developing property, had been sued by their bank for defaulting on multiple lines of credit. The bank filed multiple lawsuits against the property developers, claiming approximately $7 million in damages, plus attorneys’ fees, which were recoverable pursuant to the terms of the promissory notes. The property developers retained our client to defend the lawsuits, asserting that the amounts claimed to be owed to the bank were significantly overstated. Our client vigorously defended the bank’s underlying lawsuits. Ultimately, the property developers settled the bank’s lawsuits for the entire amount owed, plus interest and the bank’s legal fees. The developers argued that its attorneys should have advised them to settle the bank’s claims after the lawsuits were commenced and that, if they had done so, they would not have had to pay the bank’s legal fees, our client’s legal fees, or expert witness fees, or the additional interest on the loan. The property developers also claimed that not settling with the bank earlier caused them lost business opportunities valued at nearly $1 million. The plaintiffs’ legal malpractice claims were dismissed because their expert witness, a Maryland attorney with no business litigation experience, was not qualified to serve as an expert and because their damages claims were speculative. Motion to dismiss in complex matter involving claims of fraud, misappropriation of trade secrets, tortious interference with contractual relations, and piercing the corporate veil. The plaintiff, an investment fund, had purchased a business that was controlled and primarily owned by our client. The business ultimately went bankrupt, and the plaintiff claimed that the purchase was premised upon misrepresentation by our client. The plaintiff maintained that jurisdiction in Delaware was proper pursuant to the Asset Purchase Agreement. The District Court was persuaded by arguments reflecting that it lacked personal jurisdiction over our client, a citizen of Canada, even though he signed the Asset Purchase Agreement which included language conferring jurisdiction over claims arising from the sale in Delaware. The court agreed that our client did not sign the agreement in his individual capacity, and the plaintiff’s piercing the corporate veil allegations were insufficient to confer personal jurisdiction. Dismissal of an unjust enrichment claim. Obtained dismissal of an unjust enrichment claim brought by a condominium unit owner against the attorneys who represented her condominium association. The unit owner claimed that the law firm was liable to her for unjust enrichment in connection with legal fees it received from the association for legal services provided in efforts to collect on past due assessments owed by the unit owner. Pursuant to the association’s governing documents, the charges were passed on to the unit owner. The court agreed that the fees that were paid to our client by the condominium association were properly earned.
Successful defense of real estate agent investigated by the PA Bureau of Professional and Occupational Affairs (BPOA).
The real estate agent represented a buyer in the purchase of a home in Adams County. Prior to closing, the buyer had the property’s septic system inspected, and the system passed the inspection. Several months after closing, the real estate agent’s client decided to sell the property. When the new prospective buyers had the septic system inspected, the system failed the inspection, and they would not agree to close until the client fixed the system. The client then learned after the fact that the original sellers had experienced many issues with the septic system, that the system had failed several prior inspections because the ground would not perc, and that the sellers failed to disclose this information when they sold the property to the client. The client filed a complaint against the real estate agent with the BPOA under the Real Estate Licensing and Registration Act, alleging the agent engaged in misrepresentation and unprofessional conduct, and claimed that the agent allegedly had knowledge of the prior history with the septic system but failed to disclose it to her. We were able to demonstrate to the BPOA investigator that the real estate agent had no knowledge of the prior history with the septic system, that neither the sellers nor their agent ever disclosed information about the system, and that if she was aware, she would have advised the client not to close on the purchase until the septic system was repaired. The BPOA declined to prosecute and closed its investigation.
Thought Leadership
Legal Updates for Real Estate E&O Liability
New Ohio Law Targets Real Estate Wholesaling Practices
May 7, 2026
Effective March 2, 2026, the Ohio Department of Commerce Division of Real Estate and Professional Licensing (REPL) now requires real estate wholesalers to clearly disclose their intention and business model when contracting with a property owner and seller. This was part of Ohio Senate Bill 155, which passed unanimously in the Ohio Senate in June 2025, and was signed into law by Governor Mike DeWine on December 1, 2025. Real estate wholesalers serve as intermediaries in property transactions. They enter into a purchase agreement with a seller with no intent to buy the property themselves. Instead, they assign the contract to another buyer or investor at a higher price or charge a fee, typically 5% to 10% of the sale price, to earn a profit. The REPL, in partnership with the Ohio Department of Aging (ODA), and Ohio District 5 Area Agency on Aging in Richland issued a Consumer Alert in March 2025, on wholesalers, citing a rise in unsolicited real estate offers targeting older Ohio homeowners, often offering complex financial arrangements that include hidden risks, leaving older homeowners financially vulnerable. Under this new legislation, real estate wholesalers in Ohio are required to disclose their status to sellers or property owners and clarify that they do not represent the seller in the transaction. The law mandates that this disclosure be made through a clear and conspicuous written statement informing the seller that the individual is acting as a wholesaler. This disclosure must also be separate from the purchase contract or agreement between the parties and must be printed in bold type with a font size of at least 12 points. In the event a wholesaler fails to provide proper notice to the seller, the seller may cancel the purchase contract at any time before the close of escrow without penalty, giving the wholesaler 30 days to return any earnest money or deposits to the seller. Wholesalers who do not clearly disclose their role or properly inform the seller may also face disciplinary action from the Ohio Superintendent of Real Estate. This can include penalties such as suspension or revocation of their real estate license, as well as potential civil liability, monetary damages, and responsibility for attorneys’ fees.
Legal Updates for Real Estate E&O Liability
Limiting Agent Liability in Pennsylvania: Knowledge, Reliance, and the E&O Landscape
May 7, 2026
Errors & Omissions (E&O) claims against real estate professionals in Pennsylvania frequently arise from allegations of nondisclosure or misrepresentation. However, Pennsylvania law provides meaningful guardrails for defense counsel, particularly where plaintiffs attempt to impose duties on agents that exceed statutory and common law obligations. A key principle, often dispositive at summary judgment, is that a seller’s agent does not owe an independent duty to investigate or discover latent defects. Under Pennsylvania law, a real estate agent representing a seller is not required to inspect the property for defects or to disclose conditions of which the agent has no knowledge. This principle aligns with the statutory framework governing licensee conduct, including the Real Estate Licensing and Registration Act (RELRA), which imposes duties of honesty and good faith, but does not create an affirmative obligation to uncover unknown defects. As a result, liability exposure in E&O claims often turns on whether the agent had actual knowledge of the alleged defect and whether the buyer’s reliance was justifiable. The Gordon v. McManus decision illustrates these principles in practice and remains a useful tool for defense practitioners. No. 972 EDA 2013, 2014 WL 10917627, at 3 (Pa. Super. Ct. June 30, 2014). In Gordon, the plaintiffs asserted claims for fraudulent misrepresentation and fraudulent inducement against real estate agents, alleging that the agents were aware of a recurring water infiltration issue and failed to disclose it. The plaintiffs further contended that the agents negligently misrepresented the condition of the property when questioned directly about potential water issues. The factual record, however, undermined these claims. The defendant agents maintained that they had no knowledge of any water infiltration problem. Critically, the plaintiffs had been informed by a neighbor that the basement had flooded on multiple occasions prior to closing. They also conducted their own inspection of the property and observed conditions – including the presence of a sump pump – that could reasonably signal potential water concerns. Despite these indicators, the plaintiffs did not pursue additional investigation or specialized inspection. The Superior Court affirmed summary judgment in favor of the agents, emphasizing two key points that frequently arise in E&O defense. First, the absence of actual knowledge was fatal to the plaintiffs’ fraud claims. Without evidence that the agents knew of the defect, there could be no intentional misrepresentation or concealment. Second, and equally important, the court found that the plaintiffs’ reliance was not justifiable. Having been placed on notice of potential water issues, the plaintiffs failed to exercise reasonable diligence in investigating the condition. Pennsylvania courts have consistently held that where a buyer is aware of facts that would prompt further inquiry, reliance on generalized or informal assurances is insufficient to sustain a fraud claim. The Gordon court also disposed of the plaintiffs’ claim under the Pennsylvania Unfair Trade Practices and Consumer Protection Law, reinforcing that such statutory claims cannot survive where the underlying fraud theory fails. For defense counsel, this linkage provides an additional pathway to narrow or eliminate exposure early in litigation. From an E&O perspective, Gordon highlights several recurring themes. Plaintiffs frequently attempt to recast nondisclosure claims as affirmative misrepresentation, particularly where there are informal communications between agents and buyers. Yet, absent proof of knowledge, these claims often collapse under scrutiny. Moreover, the decision underscores the importance of the buyer’s own conduct. Evidence that a buyer received notice of a potential defect, whether through third parties, inspection findings, or observable conditions, can significantly weaken claims of justifiable reliance. Practically, this framework offers clear guidance for both litigators and real estate professionals. For defense attorneys, early case assessment should focus on developing the evidentiary record regarding the agent’s knowledge and the buyer’s pre-closing awareness. For agents and brokers, risk mitigation remains centered on disciplined communication practices and encouraging independent inspections without offering definitive assurances about property conditions. Ultimately, while E&O claims in Pennsylvania continue to test the boundaries of agent liability, decisions like Gordon reaffirm a consistent judicial approach: liability cannot be imposed where knowledge is absent and reliance is unreasonable. In an environment where plaintiffs increasingly rely on hindsight to construct claims, these principles remain a critical line of defense.
