TEXAS REALTORS NOT REQUIRED TO HAVE ERRORS AND OMISSIONS INSURANCE
The Texas Real Estate Commission licenses and allegedly oversees the actions of real estate agents and brokers. The truth is that the Texas Real Estate Commission exists to protect and preserve real estate agents and brokers - not the public. There are numerous examples of that intent but none better than the fact that the Texas Real Estate Commission does not require brokers and agents to have insurance. That's right. Texas real estate agents and brokers are not required by the Texas Real Estate Commission to carry any kind of insurance at all.
So while Texas real estate agents and brokers are not required to maintain insurance for their mistakes, the Texas Real Estate Commission does require home inspectors to carry insurance. So home inspectors HAVE to carry insurance and realtors DO NOT. What is the sense in that? Who does THAT protect?
Well, consider that the ENTIRE transaction is affected by the real estate agent. Yet the home inspector only deals with a visible inspection of the house. The home inspector does his job and if he makes a mistake, then there is insurance REQUIRED by the Texas Real Estate Commission. A real estate agent, however, can make a mistake involving communications with the other party; make a mistake on square footage; make a mistake on the flood zone; make a mistake on the repairs required and on and on and on. And no matter how many opportunities there are for simple mistakes that will forever affect the buyer and possibly the seller of that home, the Texas Real Estate Commission DOES NOT REQUIRE AGENTS AND BROKERS TO BUY LIABILITY INSURANCE.
The reason is simple. The lobbying interest of the real estate industry has worked hard to insulate their profession from liability to the public. Lawyers who represent only real estate agents sit on the broker/lawyer committee. There are no consumer interests represented unless you believe that public members selected by the realtors on the committees are impartial.