Brokering Commercial Mortgages and E&O
Our Commercial Real Estate clients have begun brokering mortgages for investors and clients. The transaction conceptually is no different than an investment sale which finds a buyer and seller for a piece of investment property except in this transaction the real estate broker finds a seller of a distressed mortgage and and investor willing to buy this mortgage.
Traditional Real Estate E&O insurance policies will exclude coverage for this type of transaction. From an insurance perspective the risk lies somewhere between a real estate agent, mortgage broker and investment advisor. If the real estate agent takes a piece of the action on the transaction it creates an even greter risk. All three of these risks are typically written on a separate and distinct E&O policies. The E&O risk of a claim for this type of transaction can come from the seller, buyer, tenant or other third party. It can also futher be complicated by bankruptcy and foreclosure issues.
Axis Insurance Serivces LLC is on the cutting edge of developing new and innovative E&O insurance policies for commercial real estate organizations. We have, in conjunction with one of our carriers, developed a product to help protect the real estate agent in these transactions. Please feel free to call our office to discuss any needs you may have
Axis Insurance Services LLC