In real estate practice, many disputes that escalate into complaints or lawsuits are not caused by major errors or misconduct. Instead, they arise from something far more basic: a breakdown in communication.
A client may not fully understand what is happening in a transaction, or may feel left in the dark during key stages. Even when everything is progressing correctly, silence can create uncertainty. That uncertainty often turns into frustration and in some cases, legal action.
Lawsuits Rarely Come From Too Much Communication
It is uncommon for clients to complain that they were kept “too informed.” In fact, frequent communication is one of the strongest protective habits an agent can develop.
Most litigation risk develops when a client later believes:
- They were not updated about important developments
- Their instructions were misunderstood or not followed
- Deadlines or conditions were not properly explained
- Problems were not disclosed in a timely way
Even if none of these perceptions are accurate, the absence of communication makes it difficult to correct misunderstandings early.
Regular Updates Build Trust and Clarity
A consistent communication practice does more than reduce legal exposure. It strengthens the entire professional relationship.
Clients generally feel more confident when they know:
- What stage the transaction is at
- What is expected next
- Whether any issues have arisen
- What actions (if any) are required from them
Importantly, updates do not need to always contain “major news”. A simple message confirming that everything is proceeding as expected can be just as valuable as a detailed report.
Silence Creates Risk Even in Smooth Transactions
Many agents assume that “no news is good news.” From a risk management perspective, this is one of the most dangerous assumptions in practice.
A transaction that appears routine to the agent may feel uncertain to the client. Without updates, clients may:
- Misinterpret delays
- Assume something has been missed
- Seek outside opinions
- Become anxious and reactive
Once trust begins to erode, even small issues can become magnified.
Practical Communication Habits That Reduce Liability
To reduce misunderstandings and strengthen documentation, consider building these habits into daily practice:
- Provide scheduled updates (e.g., weekly or at key milestones)
- Confirm instructions in writing after phone calls or meetings
- Notify clients when conditions are fulfilled or waived
- Explain next steps clearly at every stage
- Document any delays and the reason for them
These steps not only improve clarity, they also create a record that can be critical if questions arise later.
Communication Under TRESA: Professional Expectations
Under Ontario’s TRESA framework, registrants are expected to act with transparency, accountability, and clear communication in their dealings with clients. While TRESA does not prescribe specific communication frequency, its general duties reinforce the importance of keeping clients properly informed and avoiding misrepresentation or omission of material facts.
Frequent communication supports compliance with these expectations and reduces the likelihood of misunderstandings escalating into formal complaints.
Considerations
Most real estate disputes do not begin with a single dramatic mistake. They begin with uncertainty, unanswered questions, or assumptions that were never corrected.
Consistent communication is one of the simplest and most effective ways to prevent that chain from forming. Keeping clients informed, even when there is little to report, helps maintain trust, reduce anxiety, and significantly lower the risk of legal conflict.
Brian Madigan LL.B., Broker