A firm which has errors and omissions insurance has only a part of the risk management it needs if it has nothing else. The Small Business Administration, the FDIC, FNMA, DHUD and other organizations consider environmental audits necessary. Subsequent purchasers of environmentally impacted properties are not liable for the costs of clean up under the Superfund Amendments and Reauthorization Act of 1986. Residential properties may generate hazardous wastes.
Lead based paint disclosure is mandatory by federal law.
Generally, if a broker has information concerning the desirability of a property and fails to disclose, the buyer is put in a better legal position than the broker.