What action should agents take to protect themselves from liability for misrepresentation?

Agents should document all communications and facts accurately to protect themselves from liability for misrepresentation. This practice not only provides a clear record of interactions and agreements but also serves as evidence that the agent acted in good faith. Accurate documentation minimizes ambiguity, which can be crucial in legal disputes, demonstrating that the agent provided truthful and clear information to all parties involved. This proactive approach reduces the risk of claims against the agent for misrepresentation, as it shows a commitment to transparency and due diligence.

The other options contrast with this best practice. Relying on word-of-mouth can lead to misunderstandings and unverified information, which increases the risk of misrepresentation. Working independently without documentation lacks a formal record to back up the agent's statements or actions and fails to create a safety net for accountability. Prioritizing speed over accuracy can lead to rushed decisions and miscommunications, ultimately jeopardizing the agent's credibility and increasing the likelihood of liability issues. Therefore, maintaining accurate documentation is essential for agents to mitigate risks associated with misrepresentation.