Real Estate Brokers

When Tenant and Buyer Screening Reports Get It Wrong: What Real Estate Brokers and Agents Need to Know

You help people find homes. Whether you’re representing buyers, renters, or sellers, your role is built on guiding transactions to a successful close. But what happens when your client is denied not because of their finances, rental history, or qualifications – but because of an error in their credit report or tenant screening file?

It happens more than you think. A potential buyer shows up as deceased. A reliable renter is flagged for an eviction they never had. A credit score drops 100 points due to a debt that doesn’t belong to them. And suddenly, a clean deal collapses.

These aren’t rare exceptions. They’re increasingly common – and they’re costing you closings, commissions, and client trust.

The Problem: Inaccurate Data in the Housing Process

Many decisions in housing today rely on automated background data: credit reports, tenant screening reports, and public record checks. These tools are used to flag financial risk, but they frequently misfire – especially when it comes to criminal records and rental history.

Common issues include:

• Mixed credit files: Another person’s debt or derogatory history appears on your client’s credit report;
• Outdated or sealed eviction records: Older court filings that have been resolved or expunged may still appear on tenant screening reports;
• False “deceased” notations: A client is incorrectly listed as deceased by a bureau or screening agency, freezing their access to housing or financing;
• Criminal record errors: Charges dismissed over 7 years ago, sealed, or never even committed by your client show up due to name mix-ups, poor database hygiene, or outdated public records;
• Wrong rental history: Missed payments, broken leases, or eviction filings wrongly assigned to your client, or applied without context.

These issues don’t just delay the process – they stop it cold. And most clients don’t know where to start when it happens.

How These Errors Impact Your Business

As a real estate broker or agent, you're not just selling property – you’re selling access. And when a deal falls apart due to a preventable error, everyone loses.

1. Lost Deals and Commission

   You work hard to find the right home, prep the paperwork, and support your client. When a transaction falls apart due to a screening error, it’s often too late to save it. That means lost income – and wasted time on both sides.

2. Damaged Reputation

   Clients trust you to help them navigate the process. If they’re denied housing without a clear explanation, and you can’t help – or worse, walk away – it reflects poorly on your professionalism, even if the mistake wasn’t yours.

3. Tenant and Buyer Disqualification

   When applicants are screened out because of inaccurate credit or rental history, they’re pushed out of the market. That slows down leasing cycles, shrinks your applicant pool, and delays closings.

4. Legal Liability (for landlords and property managers)

   Under the Fair Credit Reporting Act (FCRA), landlords and property managers who rely on tenant screening reports must provide a copy of the report and allow the applicant to dispute inaccuracies before taking adverse action. If you're involved in managing this process – or working on behalf of a landlord – you could be indirectly exposed to liability when those rules are skipped.

You’re Not Responsible for Fixing It – But You Can Help

You're not a credit counselor or legal expert. You're not expected to fix your client’s file. But you're in a unique position to:

• Recognize when something looks wrong
• Inform the client of their rights
• Refer them to someone who can help resolve it

These small steps can protect the deal, preserve your relationship, and differentiate you from agents who walk away when things get complicated.
 

How to Spot the Red Flags

If a credit or tenant screening report doesn’t align with your client’s history, here are the signs to look for:

• A buyer or renter is unexpectedly rejected or flagged for a background issue they know nothing about;
• A tenant screening report shows evictions or lease breaks that your client says never happened;
• The report includes criminal charges in jurisdictions your client has never lived in;
• A client is listed as deceased, blocking any credit or rental approval;
• Information is duplicated, misattributed, or tied to an address that isn’t theirs.

In these cases, the problem isn’t your client – it’s the data vendors your systems rely on. And they do make mistakes.

The Referral Solution: Legal Help for Screening, Rental, and Criminal Record Errors

When your client hits a wall due to a faulty report, you need a reliable path to get them help – fast.

At Consumer Attorneys PLLC, we work directly with buyers and renters to challenge inaccurate:

• Credit reports (Experian, Equifax, TransUnion);
• Tenant screening reports (CoreLogic, TransUnion SmartMove, AppFolio, LexisNexis, etc.);
• Criminal background entries that are outdated, sealed, or misassigned;
• Eviction or rental history errors;
• False deceased notations.

These issues are resolved through disputes under the Fair Credit Reporting Act (FCRA) – and when necessary, legal action to hold data providers accountable. There’s no cost to your client, as fees are recovered from the responsible party if violations are found.

Helping Clients Helps You

Referring a client to legal support doesn’t just save a deal. It helps you:

• ✅ Protect the transaction;
• ✅ Add real value in tough situations;
• ✅ Earn trust from renters and buyers;
• ✅ Attract referrals from people you helped when others didn’t.

A bad report shouldn’t stop a good client from finding housing. Your advocacy might be the only reason they get another shot.

Referral Guide for Real Estate Professionals

When a rental or sale hits an unexpected roadblock:

1. Pause and Ask: “Would you be willing to request a copy of the report that led to this decision?”.
2. Explain the Possibility of an Error: Let them know these reports are sometimes inaccurate, and they have rights under federal law.
3. Refer to Legal Help: Get a referral link below and guide your client to us for professional help.

You’re not fixing the problem. You’re pointing them to someone who can.

Final Thought: The Housing Market Runs on Data – But Data Isn’t Always Right

Every application, every showing, every offer rests on systems built to evaluate risk. But when those systems are wrong, people get hurt – and deals fall apart.

By recognizing when the process is broken and guiding your client toward a fix, you’re doing more than protecting your commission. You’re advocating for fairness – and helping good people move forward.