Irrespective of the agency terms and the individual terms agreed with a landlord, an agent is open to negligence claims for acts of omission and negligent actions. Increasingly, the courts have little sympathy with an agent who has acted unprofessionally or unskilfully or with little knowledge and training. Where a significant claim has been found against an agent, that agent may find it very hard or at least very expensive to maintain ongoing professional indemnity insurance.

Negligence

A person who is an employer-in-law is responsible for anything the employee does in the ordinary course of the employment unless the employer can show that all reasonable steps were taken to prevent the employee from doing it. In the same way, a landlord is responsible for the agent's acts in a property letting/management situation.

However, whilst the landlord must indemnify the agent in respect of acts carried out by the agent on behalf of the client, the landlord may have a negligence claim against the agent and be able to recover losses and damages if the agent has acted beyond the terms of business or contrary to the law or best practice.

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