We left our hero, Mr S, having started his business as a property agent and growing fast.
All was going well until…..
Trouble walks into his office. The problem with this trouble (like many) was that it was disguised as opportunity.
In walks Mr Ishitzuup (Mr I). Mr I has a portfolio of properties he has recently bought and renovated and wanted Mr S to let and manage them.
“Fantastic” thought Mr S and readily agreed to help.
He manages to find tenants for all of the properties and enjoys a reasonable fee as a result. However, the following then happens:
1. a tenant gets badly injured by shutting a door and part of the ceiling falls on his head.
2. another tenant complains after his 2nd say at the property that there is a train line that runs close to the property that he was not made aware of.
3. a third tenant just stops paying the rent and closer inspection shows that he has had 2 CCJs which were not brought to light prior to the tenancy.
This is very bad news for Mr S. Mr S is the property manager for all of these properties. He suddenly has a claim against him from:
– tenant 1 alleging that he raised an issue of a faulty ceiling to the agent but that this was not acted upon.
– from tenant 2 alleging that the agent has breached the new CPRs by not disclosing enough information about the property prior to entering in the Assured Shorthold transaction.
– from Mr I (the third tenant’s landlord) alleging that the pre tenancy reference was negligent.
However all is not lost.
There is one piece of paper that can save him.
Does he have it?
Yes he does!!
What is it?
His Professional Indemnity policy!!
A Friday Fable must end well. This one does end well. All of the latent fire power of quality lawyers attached to a good professional indemnity policy is unleashed and the security of a quality blue chip insurer also stands by to pay the claim if it cannot be successfully defended.
These issues then turned from being stressful business breakers to just inconvenient.
Mr S and his business, learn, improve, continue to trade and live happily ever after!
Happy Friday.
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