Liability for Referrals to Other Professionals



Is there any liability imposed upon an agent for a referral?


There are always issues when it comes to referrals. This is actually a professional responsibility under the Act. Sometimes, you can appreciate that you are being asked specifically for a “professional” recommendation. Frequently, that really means 1 person, not two and not three. How is the third person compared to the first: inexperienced, inept and incompetent? Well, that was great!

You have to be able to endorse ALL three, if you are coming up with three. Also, you should rank them too.

The significant risk is that you are often being paid a referral fee. So, you better do a professional job and undertake some research. Or, simply back away and don’t offer any suggestions. That would be better than giving out poor advice.

This is actually the “business” of family physicians as they “refer” patients to specialists. Yes, they can be sued for that.

And, yes, real estate agents can be sued for negligence associated with an incorrect, improper referral.

Brian Madigan LL.B., Broker

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