In any real estate transaction, real estate agents are exposed to varying degrees of risk. Problems arising from transactions may not occur until after months, even years, have passed. For example, a buyer may bring up a complaint about the condition of the home he purchased two years ago. Or a seller may question raise questions about the listing details of their home you sold last year.

When a problem does arise in a transaction, an agent will often be asked to produce justification on why he did what he did or did not do. When an agent is diligent in keeping notes of any event or communication or observation during the transaction period, the level of risk becomes more manageable.

An agent’s notes created at the time of the event are usually regarded as reliable evidence of what actually happened during that time. The following would be a good practice of keeping records of

• Keep a telephone log of all business calls, and summarize what was discussed or action points decided.

• Keep an electronic file of all email communications.

• Keep a transaction file containing all documents sent, including disclosures, and all notes and observations.

• Keep a record of showing activities and feedback. Do this even for potential buyers.

• Record the recipients of documents sent out. Keep receipt confirmations when available.

It is never a waste of time to record and document any activity that has transpired with clients, fellow agents, or service providers involved in the transaction. It is the first line of defense in any allegations made against the real estate agent.