Looking back at 2024’s most expensive claims
As we prepare to turn our calendars ahead to a New Year, this is the time that we traditionally look back at the year that was and see what we can learn that will serve us well in the coming year.
This year’s top five most expensive claims of 2024 is our annual wrap-up of the year’s claims activities and offers related links to tips on how to avoid being one of the claims featured next year.
While we haven’t reached the end of 2024 yet, we’re expecting about 247 claims this year compared to 263 last year, a decrease of approximately 6% (see chart). Going forward into 2025, we expect there will be some claims against licensees who have not kept up with changes in the laws about tenant notices and changes in industry practices such as the inclusion of GST in the purchase price in standard form contracts. One key way to avoid being the subject of a claim is to stay current in the ever changing real estate landscape.
While the cases below are our top five most expensive claims for 2024, we encourage you to take some time to scan the Risk Report archives for a treasure trove of loss prevention advice on how to avoid claims in the first place.
Cost + claim type (inc. legal fees) |
Summary | Suggested reading material |
$487,000 Negligence |
A seller’s agent was alleged to have been negligent in failing to properly value the property. | Market changes = remorse (June 2020) |
$314,000 Negligence |
A buyer’s agent was alleged to have been negligent in incorrectly advising their client that they would only forfeit their deposit if they failed to complete the deal. | Deposits: considerations and consequences (Sept 2024) |
$246,000 Misrepresentation |
A commercial tenant alleged that the leasing agent misrepresented the costs related to the lease. | Recipe for misrepresentation (March 2022) Misrepresentation video (3 mins) (Dec 2023) |
$237,000 Negligence |
A seller’s agent was alleged to have given negligent advice about title. | Seriously, what’s your deal? (Dec 2022) |
$161,000 Negligence |
A buyer’s agent was alleged to have been negligent in failing to advise their client to get legal advice. | Don’t roll the dice on recommending advice (Dec 2023) |