Tami Patzer is the Right Choice for Southwest Florida Real Estate

Should you sell your home in this market? Think first!

Tami Patzer (World Properties International-InvestorsChoice Real Estate) — Mon, 05 Mar 2007 05:29:43 -0600

Should you sell your home in today's market? (A look at the law of supply and demand)

Last month I talked about all the myths surrounding today's real estate market in Southwest Florida. This month I want to talk about simple economics. We all remember studying the law of supply and demand in school, right?

Well, let's look back at 2004. Hurricane Charley hit us smack dab in the eye in the Punta Gorda/Port Charlotte area and Arcadia. Parts of the Cape Haze Peninsula and North Port got a bit of wind damage, but nothing like the devastation that Port Charlotte, Punta Gorda and Arcadia experienced.

Housing shortage

What happened after Hurricane Charley and all the other named storms of 2004 and 2005? A housing shortage. So right after Charley, we experienced a boom of people seeking housing. I remember people from Port Charlotte and Punta Gorda living in Englewood, North Port, and Venice and as far north of Sarasota and Tampa. Why? Simply because there were no homes for them to live in near their jobs and schools. Rentals skyrocketed from an average $600 to $700 a month to $1000 and more.

I remember in the early days when I had to take my son to school at 6 a.m., so students from Port Charlotte could attend school at L.A. Ainger in the afternoon. We honestly had a shortage of livable homes.

Recovery building

A few months done the road, we started to recover. For those of us lucky enough to live in Englewood or North Port, our lives went on in a fairly normal way. I still know people who have not found suitable housing who lived in the FEMA trailer parks. Still in 2007, people are still whirling from a storm that blew away the lives they knew and cherished.

Law of Supply and Demand

The law of supply and demand comes in as the recovery moved forward. Builders built many homes to replace the damaged and blighted ones. Many homes were built in the bustling city of North Port (one of the few incorporated cities in the area). People like North Port because it is centrally located near Interstate 75 and U.S. 41 right between Fort Myers and Sarasota. These homes were priced in the 200s to 300s for basic three bedroom, two bath homes with garages on an average size lot. Areas of North Port that had never seen a bull dozer suddenly became neighborhoods. In surrounding towns including Englewood, Venice and other outlying area including the Cape Haze peninsula, homes sprung up in the form of single family dwellings, duplexes, condos, and luxury homes and villas.

(I guess they ignored the fact that there are very few large companies for people to work at nearby. The reality is that most jobs in this area are not high paying executive positions!)

In other words, people were buying these homes rapidly. As people moved out of Florida, others flocked in to get in on the hot property market. Some arrived too late to benefit, while others took the money and ran. Investor flippers bought, fixed a little and sold. You know the rest of the story.

Sellers woke up too late

Sometime in late 2005 and 2006, some very sleepy people woke up and saw that their neighbor made a bunch of money on their home by selling it. It was too late. Time had caught up to the booming real estate market and too many sellers put their homes on the market at the same time. This is where the law of supply and demand comes in. When there is a large supply, things become less expensive to buy. When there is a shortage, things become more expensive. So if this is a buyers market, it means there is too much inventory in the marketplace. How do you turn the tide a little? Don't sell unless you must! (Remember, we have a tax base. Properties can't fail below a certain amount.)

Should you sell your home?

So, here is my question to potential sellers: Do you really need to sell your home right now?

Before you jump into the frenzy of fear that your home will only be worth pennies on the dollar if you wait, step back and look at history. Real estate is land. There is only so much land available on the planet. Real estate is just that, real. It will always be there and the value will go up and down. Waterfront property is limited, especially waterfront with access to the bay and gulf.

STOP! Ask yourself some questions.

•1) Why am I selling now?

•2) What is my motivation to sell today?

Turn the page please...more from Tami Patzer

•3) How long can I wait to get the price I think I need? Or want?

•4) Ask yourself if you really need to sell or if you just need to refinance due to interest rates or other tangible reasons.

•5) Am I selling out of fear of losing my home?

•6) Did I pay too much?

•7) Will I make any money?

•8) What is the worst thing that will happen to me if I don't sell my home this month or this year?

•9) What are my options?

•10) Am I worried that I missed the boat and will lose my equity?

As you can read, there are myriad questions you can ask yourself about your reasons to sell your home. Of course, there a many valid reasons to sell your home. Maybe you want to move; maybe you are older and want to move in with your children or to an independent living facility; maybe you just don't want to own any more. Again, depending upon each person, the list is endless and only you can determine your personal reasons.

As a Realtor, I want to help both sellers and buyers do what they want to do for themselves. I can help a seller prepare for the emotional roller coaster of selling and I can help a buyer determine how much they can afford in a new home and help them find it.

Too many choices lead to no action

Have you ever wondered why our buyers seem to be so far and few between right now? I was thinking about this the other day. I remembered when I was a child and my father took me into a fancy candy store. He said," You can have anything you want!" Well, of course, there were hundreds of bins of sugar candies, licorice, chocolates, and nuts...everything imaginable. Do you know that I walked out of the candy store empty-handed? Why? I couldn't make up my mind because I had too many choices. This is exactly what is happening today. Buyers want to buy, but they have too many choices. And with so many choices, they stop in their tracks because they, too, have fears. They fear that if they choose a certain home, a better deal, a better floor plan, a better something might be just around the corner tomorrow, so they don't buy anything at all. Think about it. An associate of mine had buyers look at 53 homes before they placed an offer! If I were thinking about selling my house in this market, I definitely would sit down and write a pro and con list about my reasons to sell now or wait. If one side of my list outweighs the other, I would use this tool to make a decision that is right for me personally.

This applies to buyers, too. Sit down and write out every single thing you can think of related to your dream home. Now is the perfect time to get that dream home because your choices are endless. With that said, if you are focused in designing your dream home on paper, a Realtor can then help you find only the homes that match your criteria. It's that simple. Write it down and see it manifest.

Is there anything to Mercury going retrograde?

Tami Patzer (World Properties International-InvestorsChoice Real Estate) — Mon, 05 Mar 2007 05:25:48 -0600

A friend of mine told me that Mercury was going retrograde on Feb. 14. She said it would create communications snafus...well, I went about my business. This retrograde issue is supposed to run from Feb. 14 to March 28. Well, I really didn't have any use for problems, so I let it go.

Last Monday, I spent the entire day in the emergency room with my boyfriend of 20 years. I lost day, so on Tuesday I tried to catch up. On Wednesday afternoon, the right side of my car was sucked into a sink hole and the road workers who had removed the asphalt said "it's not our fault!" We missed a very important appointment. Thursday was another day of makeups. By Friday we had another 1/2 day doctor's appt. and I had to reschedule a listing appt. because of the missed appt. on Wednesday. By Saturday, I was exhausted and still behind. The appt. missed on Friday caused the people to decide I shouldn't be given a change to present my market analysis (I decided I probably wouldn't want to be their Realtor any way, if they can't understand things like sink holes and emergency room visits.)

Communications, missed appointments, weirds phone calls, and disappointments. Has anyone else experience this issue? Is there something to Mercury being in retrograde? Or perhaps I am justs grasping for anything to explain my week of misfortune?

Buyers expect more from Realtors today

Tami Patzer (World Properties International-InvestorsChoice Real Estate) — Mon, 12 Feb 2007 18:38:54 -0600

I was talking with an associate in my office today and we were discussing buyers. For some of us, these people are a precious commodity, so when we get one, we work with them. She told me that after showing this couple 53 homes they finally selected one and put an offer in on it! I thought, wow, 53 homes! She also told me that they were CASH buyers. What does this say to real estate professionals?

My experience lately has been that buyers are waiting in the wings while this real estate in Southwest Florida is balancing. When things cooled last year and interest rates for homes climbed a bit and the Federal Reserve increased the reserve rate 17 times in a year, potential buyers put on their thinking caps.

My take on this is that the buyer of today and perhaps tomorrow is:

1) Looking for value.

2) Expecting exceptional service from everyone connected with the real estate transaction.

3) Prepared to pay cash or put down a substantial sum of cash for a downpayment.

4) Buyers want the best home for the best deal. For example, I have had people arrive with $100,000 for a downpayment. (In in my area, this is substantial.) They want to look at homes that have many upgrades and have been slashed a great deal. I am working with buyers who have $100,000 for the down; they are looking at at $450,000 home; and they want to offer about $395,000. That means their mortgage would be $295,000, which would be much more affordable than if they had a smaller downpayment.

5) I do have some first-time buyers looking for 100 percent financing, but even these people realize that they need to up their credit scores to get the best rates in the long haul.

Basically, I think today's real estate agents will have to work a lot harder for the commission they earn. And, believe me I now how hard we all work for your paycheck, so the last thing I ever do is agree to take a smaller commission. It costs us more to sell a property today than it ever did, so the seller and buyers need to understand this.

6) Buyers want a fair deal, so if sellers understand that negotiations are in order everyone can win during the rebalancing act of 2007.

What sellers are telling me in Southwest Florida

Tami Patzer (World Properties International-InvestorsChoice Real Estate) — Sun, 11 Feb 2007 22:59:01 -0600

I have been going to listing interviews on a regular basis. Luckily I enjoy talking with people and I especially enjoy hearing their stories about how they feel when they interview prospective real estate agents. It is very interesting to note that today's sellers do not just pick a real estate agent out of a hat and say "OK, let's try this one." Today sellers are interviewing up to five or six people. I normally am one of the six and I am happy to say most of time they choose me...why, I think it's because I am REAL. I really care about their hopes, dreams, desires and goals. I listen to why they are selling or why they won't sell...here are some stories from real people in North Port, Port Charlotte, Punta Gorda and Englewood.

1) One of my customers who is selling her home because she wants to go live near her family told me how many of the real estate agents came into her home and told her everything that was wrong with it, but nothing about what was right about her home. She continued to tell me that some of the real estate agents couldn't tell what they would do to try to sell her home, but they offered her information about how slow the market was and how it would take a long time to sell the property.

2) Another fiesty lady and her husband told me how they chose to interview the top sales guy from last year...when he came to the house, he never looked her in the eye, or talked much at all, except to tell her that since her home only had a waterview it wasn't worth as much as a home directly on the water. He failed to notice that the couple had poured their hearts and souls into decorating the house inside and out. Yet another real estate agent only talked about square footage and flaws. Again, this couple didn't care about the facts, they are interested in knowing that their real estate agent appreciates the hours and hours of love and labor they put into rehabilitating the home after years of neglect by its former owners and the effects of Hurricane Charley.

3) Yet another real estate agent never got back to them after the initial interview...how can they list their property with that agent if they never hear from him or her again?

Some real estate professionals might not like my candor, but wouldn't you want to improve your communications skills if you knew how other people are perceiving you? Most real estate professionals are nice people, but if you are only in it for the money, you will fail miserably in the long run.

My advice to others is to listen to sellers and buyers and serve the higher good...it will be a win-win. And the money will follow.

Downpayment assistance deadline approaching Feb. 20

Tami Patzer (World Properties International-InvestorsChoice Real Estate) — Sun, 11 Feb 2007 22:12:24 -0600

For anyone interested in first time homeowner 0 percent loans in Sarasota County, the deadline is approaching. A family can get up to $35,000 to apply toward a first home. The money is limited, but if you qualify it's fairly easy to apply and get the help you need. Contact me at tamipatzer@tamipatzer.com and I will send you the complete application package for Sarasota or Charlotte county. (800) 756-0391

Word of Mouth Radio Show premieres Feb. 17

Tami Patzer (World Properties International-InvestorsChoice Real Estate) — Sun, 11 Feb 2007 22:05:23 -0600

Today's blog is written in a press release format, so you can share it with others in a succinct fashion! Thanks Tami Patzer.

Local Realtor and mortgage broker, Tami Patzer, World Properties International-InvestorsChoice Real Estate, Inc., is launching a radio and television show called "Word of Mouth." It will premiere from noon to 1 p.m. Saturday, Feb. 17, 2007.

"Every week we'll take an upbeat look at today's business, real estate, and financial conditions, combining creative thinking with powerful ideas all related to living in Southwest Florida," said Tami Patzer, about the one-hour program "Word of Mouth" set to premiere at several radio station including 1530 WENG and WFMY 1280AM as well as BLAB TV.

"Word of Mouth" guests will take a positive look at what's happening on our world today, said Patzer. "It's a program that will help everyone get facts so they can make wise decisions about their daily lives."

"There is no gloom and doom on Word of Mouth," she said. "It's a bright change of pace for people stuck in an old mindset based on fear. Word of Mouth will help people see all the possibilities for their own lives both professionally and personally.

For information about Word of Mouth, send Patzer an e-mail at tamipatzer@tamipatzer.com or visit http://www.tamipatzer.com/. Call (941) 875-6800.

Word of Mouth is broadcast on radio and via live streaming at www.1530WENG.com.

What should a renter do if the home they are renting in headed toward foreclosure?

Tami Patzer (World Properties International-InvestorsChoice Real Estate) — Sun, 11 Feb 2007 21:53:06 -0600

I had a phone call early Saturday morning from a renter in distress. She had received a LIS PENDENS or public notice of an intended foreclosure process. She was "John Doe". While I am not an attorney I have talked to attorneys and studied the information provided by the State of Florida. I told her to answer the LIS PENDENS and certainly to continue to pay her rent or she would in fact have a good possibility of forfeiting her last month's rent and security deposit. Her first reaction was to stop paying her rent...not a good idea in Florida. The last thing she would want is to get a three-day notice and a court hearing for eviction. I explained to her that in Florida she had a good leg to stand on and to be sure to follow the court's directions. It is very interesting to me that the first thing people do when FEAR strikes is to STOP everything in their normal lives and focus on the worst case scenario rather than the possible solutions to their problems. This intrigues me so much that I am launching a radio show called "Word of Mouth" from noon to 1 p.m. on 1530WENG radio or 1530WENG.com with live streaming so anyone around the world can listen in to it. The first topic will be about Foreclosures and what to do in case you find yourself in a potential foreclosure situation.

This is original material by Tami Patzer. Please credit Tami Patzer, Realtor and licensed mortgage broker, if you reuse it. World Properties International-InvestorsChoice Real Estate, Inc. (800) 756-0391

New to Group

Tami Patzer (World Properties International-InvestorsChoice Real Estate) — Fri, 26 Jan 2007 07:15:27 -0600

I am new to group. Any advice for using it? Tami Patzer

Realtor Code of Ethics in English

Tami Patzer (World Properties International-InvestorsChoice Real Estate) — Fri, 26 Jan 2007 07:07:02 -0600

Code of Ethics and Standards of Practice
of the NATIONAL ASSOCIATION OF REALTORS®
Effective January 1, 2007

Where the word REALTORS® is used in this Code and Preamble, it shall

be deemed to include REALTOR-ASSOCIATE®s.

While the Code of Ethics establishes obligations that may be higher

than those mandated by law, in any instance where the Code of Ethics

and the law conflict, the obligations of the law must take precedence.

Preamble

Under all is the land. Upon its wise utilization and widely allocated

ownership depend the survival and growth of free institutions and of our

civilization. REALTORS® should recognize that the interests of the nation

and its citizens require the highest and best use of the land and the

widest distribution of land ownership. They require the creation of

adequate housing, the building of functioning cities, the development

of productive industries and farms, and the preservation of a healthful

environment.

Such interests impose obligations beyond those of ordinary commerce.

They impose grave social responsibility and a patriotic duty to which

REALTORS® should dedicate themselves, and for which they should be

diligent in preparing themselves. REALTORS®, therefore, are zealous to

maintain and improve the standards of their calling and share with their

fellow REALTORS® a common responsibility for its integrity and honor.

In recognition and appreciation of their obligations to clients,

customers, the public, and each other, REALTORS® continuously strive to

become and remain informed on issues affecting real estate and, as

knowledgeable professionals, they willingly share the fruit of their

experience and study with others. They identify and take steps, through

enforcement of this Code of Ethics and by assisting appropriate

regulatory bodies, to eliminate practices which may damage the public

or which might discredit or bring dishonor to the real estate profession.

REALTORS® having direct personal knowledge of conduct that may

violate the Code of Ethics involving misappropriation of client or

customer funds or property, willful discrimination, or fraud resulting in

substantial economic harm, bring such matters to the attention of the

appropriate Board or Association of REALTORS®. (Amended 1/00)

Realizing that cooperation with other real estate professionals promotes

the best interests of those who utilize their services, REALTORS® urge

exclusive representation of clients; do not attempt to gain any unfair

advantage over their competitors; and they refrain from making

unsolicited comments about other practitioners. In instances where their

opinion is sought, or where REALTORS® believe that comment is

necessary, their opinion is offered in an objective, professional manner,

uninfluenced by any personal motivation or potential advantage or gain.

The term REALTOR® has come to connote competency, fairness, and

high integrity resulting from adherence to a lofty ideal of moral

conduct in business relations. No inducement of profit and no

instruction from clients ever can justify departure from this ideal.

In the interpretation of this obligation, REALTORS® can take no safer

guide than that which has been handed down through the centuries,

embodied in the Golden Rule, "Whatsoever ye would that others

should do to you, do ye even so to them."

Accepting this standard as their own, REALTORS® pledge to observe its

spirit in all of their activities whether conducted personally, through

associates or others, or via technological means, and to conduct their

business in accordance with the tenets set forth below. (Amended 1/07)

Duties to Clients and Customers
Article 1

When representing a buyer, seller, landlord, tenant, or other client as an

agent, REALTORS® pledge themselves to protect and promote the

interests of their client. This obligation to the client is primary, but it

does not relieve REALTORS® of their obligation to treat all parties

honestly. When serving a buyer, seller, landlord, tenant or other party

in a non-agency capacity, REALTORS® remain obligated to treat all

parties honestly. (Amended 1/01)

• Standard of Practice 1-1

REALTORS®, when acting as principals in a real estate transaction,

remain obligated by the duties imposed by the Code of Ethics.

(Amended 1/93)

• Standard of Practice 1-2

The duties imposed by the Code of Ethics encompass all real estaterelated

activities and transactions whether conducted in person,

electronically, or through any other means.

The duties the Code of Ethics imposes are applicable whether

REALTORS® are acting as agents or in legally recognized non-agency

capacities except that any duty imposed exclusively on agents by law

or regulation shall not be imposed by this Code of Ethics on

REALTORS® acting in non-agency capacities.

As used in this Code of Ethics, "client" means the person(s) or

entity(ies) with whom a REALTOR® or a REALTOR®'s firm

has an agency or legally recognized non-agency relationship;

"customer" means a party to a real estate transaction who receives

information, services, or benefits but has no contractual relationship

with the REALTOR® or the REALTOR®'s firm; "prospect" means a

purchaser, seller, tenant, or landlord who is not subject to a

representation relationship with the REALTOR® or REALTOR®'s firm;

"agent" means a real estate licensee (including brokers and sales

associates) acting in an agency relationship as defined by state law or

regulation; and "broker" means a real estate licensee (including

brokers and sales associates) acting as an agent or in a legally

recognized non-agency capacity. (Adopted 1/95, Amended 1/07)

• Standard of Practice 1-3

REALTORS®, in attempting to secure a listing, shall not deliberately

mislead the owner as to market value.

• Standard of Practice 1-4

REALTORS®, when seeking to become a buyer/tenant representative,

shall not mislead buyers or tenants as to savings or other benefits

that might be realized through use of the REALTOR®'s services.

(Amended 1/93)

• Standard of Practice 1-5

REALTORS® may represent the seller/landlord and buyer/tenant in the

same transaction only after full disclosure to and with informed

consent of both parties. (Adopted 1/93)

• Standard of Practice 1-6

REALTORS® shall submit offers and counter-offers objectively and as

quickly as possible. (Adopted 1/93, Amended 1/95)

• Standard of Practice 1-7

When acting as listing brokers, REALTORS® shall continue to submit

to the seller/landlord all offers and counter-offers until closing or

execution of a lease unless the seller/landlord has waived this

obligation in writing. REALTORS® shall not be obligated to continue to

market the property after an offer has been accepted by the

seller/landlord. REALTORS® shall recommend that sellers/landlords

obtain the advice of legal counsel prior to acceptance of a subsequent

offer except where the acceptance is contingent on the termination of

the pre-existing purchase contract or lease. (Amended 1/93)

• Standard of Practice 1-8

REALTORS®, acting as agents or brokers of buyers/tenants, shall

submit to buyers/tenants all offers and counter-offers until

acceptance but have no obligation to continue to show properties to

their clients after an offer has been accepted unless otherwise agreed

in writing. REALTORS®, acting as agents or brokers of buyers/tenants,

shall recommend that buyers/tenants obtain the advice of legal

counsel if there is a question as to whether a pre-existing contract has

been terminated. (Adopted 1/93, Amended 1/99)

• Standard of Practice 1-9

The obligation of REALTORS® to preserve confidential information (as

defined by state law) provided by their clients in the course of any

agency relationship or non-agency relationship recognized by law

continues after termination of agency relationships or any nonagency

relationships recognized by law. REALTORS® shall not

knowingly, during or following the termination of professional

relationships with their clients:

1) reveal confidential information of clients; or

2) use confidential information of clients to the disadvantage of

clients; or

3) use confidential information of clients for the REALTOR®'s

advantage or the advantage of third parties unless:

a) clients consent after full disclosure; or

b) REALTORS® are required by court order; or

c) it is the intention of a client to commit a crime and the

information is necessary to prevent the crime; or

d) it is necessary to defend a REALTOR® or the REALTOR®'s

employees or associates against an accusation of wrongful

conduct.

Information concerning latent material defects is not considered

confidential information under this Code of Ethics. (Adopted 1/93,
Amended 1/01)

• Standard of Practice 1-10

REALTORS® shall, consistent with the terms and conditions of their

real estate licensure and their property management agreement,

competently manage the property of clients with due regard for the

rights, safety and health of tenants and others lawfully on the

premises. (Adopted 1/95, Amended 1/00)

• Standard of Practice 1-11

REALTORS® who are employed to maintain or manage a client's

property shall exercise due diligence and make reasonable efforts to

protect it against reasonably foreseeable contingencies and losses.

(Adopted 1/95)

• Standard of Practice 1-12

When entering into listing contracts, REALTORS® must advise

sellers/landlords of:

1) the REALTOR®'s company policies regarding cooperation and the

amount(s) of any compensation that will be offered to subagents,

buyer/tenant agents, and/or brokers acting in legally recognized

non-agency capacities;

2) the fact that buyer/tenant agents or brokers, even if compensated

by listing brokers, or by sellers/landlords may represent the

interests of buyers/tenants; and

3) any potential for listing brokers to act as disclosed

dual agents, e.g. buyer/tenant agents. (Adopted 1/93, Renumbered
1/98, Amended 1/03)

• Standard of Practice 1-13

When entering into buyer/tenant agreements, REALTORS® must advise

potential clients of:

1) the REALTOR®'s company policies regarding cooperation;

2) the amount of compensation to be paid by the client;

3) the potential for additional or offsetting compensation from other

brokers, from the seller or landlord, or from other parties;

4) any potential for the buyer/tenant representative to act as a

disclosed dual agent, e.g. listing broker, subagent, landlord's

agent, etc., and

5) the possibility that sellers or sellers' representatives may not treat

the existence, terms, or conditions of offers as confidential

unless confidentiality is required by law, regulation, or by any

confidentiality agreement between the parties. (Adopted 1/93,
Renumbered 1/98, Amended 1/06)

• Standard of Practice 1-14

Fees for preparing appraisals or other valuations shall not be contingent

upon the amount of the appraisal or valuation. (Adopted 1/02)

• Standard of Practice 1-15

REALTORS®, in response to inquiries from buyers or cooperating

brokers shall, with the sellers' approval, disclose the existence of

offers on the property. Where disclosure is authorized, REALTORS®

shall also disclose whether offers were obtained by the listing

licensee, another licensee in the listing firm, or by a cooperating

broker. (Adopted 1/03, Amended 1/06)

Article 2

REALTORS® shall avoid exaggeration, misrepresentation, or concealment

of pertinent facts relating to the property or the transaction. REALTORS®

shall not, however, be obligated to discover latent defects in the property,

to advise on matters outside the scope of their real estate license, or to

disclose facts which are confidential under the scope of agency or

non-agency relationships as defined by state law. (Amended 1/00)

• Standard of Practice 2-1

REALTORS® shall only be obligated to discover and disclose adverse

factors reasonably apparent to someone with expertise in those areas

required by their real estate licensing authority. Article 2 does not

impose upon the REALTOR® the obligation of expertise in other

professional or technical disciplines. (Amended 1/96)

• Standard of Practice 2-2

(Renumbered as Standard of Practice 1-12 1/98)

• Standard of Practice 2-3

(Renumbered as Standard of Practice 1-13 1/98)

• Standard of Practice 2-4

REALTORS® shall not be parties to the naming of a false consideration

in any document, unless it be the naming of an obviously nominal

consideration.

• Standard of Practice 2-5

Factors defined as "non-material" by law or regulation or which are

expressly referenced in law or regulation as not being subject to

disclosure are considered not "pertinent" for purposes of Article 2.

(Adopted 1/93)
Article 3

REALTORS® shall cooperate with other brokers except when cooperation

is not in the client's best interest. The obligation to cooperate does not

include the obligation to share commissions, fees, or to otherwise

compensate another broker. (Amended 1/95)

• Standard of Practice 3-1

REALTORS®, acting as exclusive agents or brokers of sellers/

landlords, establish the terms and conditions of offers to cooperate.

Unless expressly indicated in offers to cooperate, cooperating

brokers may not assume that the offer of cooperation includes an

offer of compensation. Terms of compensation, if any, shall be

ascertained by cooperating brokers before beginning efforts to

accept the offer of cooperation. (Amended 1/99)

• Standard of Practice 3-2

REALTORS® shall, with respect to offers of compensation to another

REALTOR®, timely communicate any change of compensation for

cooperative services to the other REALTOR® prior to the time such

REALTOR® produces an offer to purchase/lease the property.

(Amended 1/94)

• Standard of Practice 3-3

Standard of Practice 3-2 does not preclude the listing broker and

cooperating broker from entering into an agreement to change

cooperative compensation. (Adopted 1/94)

• Standard of Practice 3-4

REALTORS®, acting as listing brokers, have an affirmative obligation to

disclose the existence of dual or variable rate commission

arrangements (i.e., listings where one amount of commission is

payable if the listing broker's firm is the procuring cause of sale/lease

and a different amount of commission is payable if the sale/lease

results through the efforts of the seller/landlord or a cooperating

broker). The listing broker shall, as soon as practical, disclose the

existence of such arrangements to potential cooperating brokers and

shall, in response to inquiries from cooperating brokers, disclose the

differential that would result in a cooperative transaction or in a

sale/lease that results through the efforts of the seller/landlord. If the

cooperating broker is a buyer/tenant representative, the buyer/tenant

representative must disclose such information to their client before

the client makes an offer to purchase or lease. (Amended 1/02)

• Standard of Practice 3-5

It is the obligation of subagents to promptly disclose all pertinent

facts to the principal's agent prior to as well as after a purchase or

lease agreement is executed. (Amended 1/93)

• Standard of Practice 3-6

REALTORS® shall disclose the existence of accepted offers, including

offers with unresolved contingencies, to any broker seeking

cooperation. (Adopted 5/86, Amended 1/04)

• Standard of Practice 3-7

When seeking information from another REALTOR® concerning

property under a management or listing agreement, REALTORS® shall

disclose their REALTOR® status and whether their interest is personal

or on behalf of a client and, if on behalf of a client, their

representational status. (Amended 1/95)

• Standard of Practice 3-8

REALTORS® shall not misrepresent the availability of access to show

or inspect a listed property. (Amended 11/87)

Article 4

REALTORS® shall not acquire an interest in or buy or present offers from

themselves, any member of their immediate families, their firms or any

member thereof, or any entities in which they have any ownership

interest, any real property without making their true position known to

the owner or the owner's agent or broker. In selling property they own,

or in which they have any interest, REALTORS® shall reveal their

ownership or interest in writing to the purchaser or the purchaser's

representative. (Amended 1/00)

• Standard of Practice 4-1

For the protection of all parties, the disclosures required by Article 4

shall be in writing and provided by REALTORS® prior to the signing of

any contract. (Adopted 2/86)

Article 5

REALTORS® shall not undertake to provide professional services

concerning a property or its value where they have a present or

contemplated interest unless such interest is specifically disclosed to

all affected parties.

Article 6

REALTORS® shall not accept any commission, rebate, or profit

on expenditures made for their client, without the client's knowledge

and consent.

When recommending real estate products or services (e.g.,

homeowner's insurance, warranty programs, mortgage financing, title

insurance, etc.), REALTORS® shall disclose to the client or customer to

whom the recommendation is made any financial benefits or fees, other

than real estate referral fees, the REALTOR® or REALTOR®'s firm may

receive as a direct result of such recommendation. (Amended 1/99)

• Standard of Practice 6-1

REALTORS® shall not recommend or suggest to a client or a

customer the use of services of another organization or business

entity in which they have a direct interest without disclosing

such interest at the time of the recommendation or suggestion.

(Amended 5/88)
Article 7

In a transaction, REALTORS® shall not accept compensation from more

than one party, even if permitted by law, without disclosure to all

parties and the informed consent of the REALTOR®'s client or clients.

(Amended 1/93)
Article 8

REALTORS® shall keep in a special account in an appropriate financial

institution, separated from their own funds, monies coming into their

possession in trust for other persons, such as escrows, trust funds,

clients' monies, and other like items.

Article 9

REALTORS®, for the protection of all parties, shall assure whenever

possible that all agreements related to real estate transactions including,

but not limited to, listing and representation agreements, purchase

contracts, and leases are in writing in clear and understandable language

expressing the specific terms, conditions, obligations and commitments

of the parties. A copy of each agreement shall be furnished to each party

to such agreements upon their signing or initialing. (Amended 1/04)

• Standard of Practice 9-1

For the protection of all parties, REALTORS® shall use reasonable care

to ensure that documents pertaining to the purchase, sale, or lease of

real estate are kept current through the use of written extensions or

amendments. (Amended 1/93)

• Standard of Practice 9-2

When assisting or enabling a client or customer in establishing a

contractual relationship (e.g., listing and representation agreements,

purchase agreements, leases, etc.) electronically, REALTORS® shall

make reasonable efforts to explain the nature and disclose the

specific terms of the contractual relationship being established prior

to it being agreed to by a contracting party. (Adopted 1/07)

Duties to the Public
Article 10

REALTORS® shall not deny equal professional services to any person for

reasons of race, color, religion, sex, handicap, familial status, or

national origin. REALTORS® shall not be parties to any plan or

agreement to discriminate against a person or persons on the basis of

race, color, religion, sex, handicap, familial status, or national origin.

(Amended 1/90)

REALTORS®, in their real estate employment practices, shall not

discriminate against any person or persons on the basis of race,

color, religion, sex, handicap, familial status, or national origin.

(Amended 1/00)

• Standard of Practice 10-1

When involved in the sale or lease of a residence, REALTORS®

shall not volunteer information regarding the racial, religious

or ethnic composition of any neighborhood nor shall they engage in any

activity which may result in panic selling, however, REALTORS® may

provide other demographic information. (Adopted 1/94, Amended 1/06)
• Standard of Practice 10-2

When not involved in the sale or lease of a residence, REALTORS® may

provide demographic information related to a property, transaction

or professional assignment to a party if such demographic

information is (a) deemed by the REALTOR® to be needed to assist

with or complete, in a manner consistent with Article 10, a real estate

transaction or professional assignment and (b) is obtained or derived

from a recognized, reliable, independent, and impartial source. The

source of such information and any additions, deletions,

modifications, interpretations, or other changes shall be disclosed in

reasonable detail. (Adopted 1/05, Renumbered 1/06)

• Standard of Practice 10-3

REALTORS® shall not print, display or circulate any statement or

advertisement with respect to selling or renting of a property that

indicates any preference, limitations or discrimination based on race,

color, religion, sex, handicap, familial status, or national origin.

(Adopted 1/94, Renumbered 1/05 and 1/06)
• Standard of Practice 10-4

As used in Article 10 "real estate employment practices" relates to

employees and independent contractors providing real estate-related

services and the administrative and clerical staff directly supporting

those individuals. (Adopted 1/00, Renumbered 1/05 and 1/06)

Article 11

The services which REALTORS® provide to their clients and customers

shall conform to the standards of practice and competence which are

reasonably expected in the specific real estate disciplines in which they

engage; specifically, residential real estate brokerage, real property

management, commercial and industrial real estate brokerage, real

estate appraisal, real estate counseling, real estate syndication, real

estate auction, and international real estate.

REALTORS® shall not undertake to provide specialized professional

services concerning a type of property or service that is outside their

field of competence unless they engage the assistance of one who is

competent on such types of property or service, or unless the facts are

fully disclosed to the client. Any persons engaged to provide such

assistance shall be so identified to the client and their contribution to

the assignment should be set forth. (Amended 1/95)

• Standard of Practice 11-1

When REALTORS® prepare opinions of real property value or price, other

than in pursuit of a listing or to assist a potential purchaser in

formulating a purchase offer, such opinions shall include the following:

1) identification of the subject property

2) date prepared

3) defined value or price

4) limiting conditions, including statements of purpose(s) and

intended user(s)

5) any present or contemplated interest, including the possibility of

representing the seller/landlord or buyers/tenants

6) basis for the opinion, including applicable market data

7) if the opinion is not an appraisal, a statement to that effect

(Amended 1/01)

• Standard of Practice 11-2

The obligations of the Code of Ethics in respect of real estate

disciplines other than appraisal shall be interpreted and applied in

accordance with the standards of competence and practice which

clients and the public reasonably require to protect their rights and

interests considering the complexity of the transaction, the

availability of expert assistance, and, where the REALTOR® is an agent

or subagent, the obligations of a fiduciary. (Adopted 1/95)

• Standard of Practice 11-3

When REALTORS® provide consultive services to clients which

involve advice or counsel for a fee (not a commission), such advice

shall be rendered in an objective manner and the fee shall not be

contingent on the substance of the advice or counsel given. If

brokerage or transaction services are to be provided in addition to

consultive services, a separate compensation may be paid with prior

agreement between the client and REALTOR®. (Adopted 1/96)

• Standard of Practice 11-4

The competency required by Article 11 relates to services contracted

for between REALTORS® and their clients or customers; the duties

expressly imposed by the Code of Ethics; and the duties imposed by

law or regulation. (Adopted 1/02)

Article 12

REALTORS® shall be careful at all times to present a true picture in their

advertising and representations to the public. REALTORS® shall also

ensure that their professional status (e.g., broker, appraiser, property

manager, etc.) or status as REALTORS® is clearly identifiable in any such

advertising. (Amended 1/93)

• Standard of Practice 12-1

REALTORS® may use the term "free" and similar terms in their

advertising and in other representations provided that all terms

governing availability of the offered product or service are clearly

disclosed at the same time. (Amended 1/97)

• Standard of Practice 12-2

REALTORS® may represent their services as "free" or without cost even

if they expect to receive compensation from a source other than their

client provided that the potential for the REALTOR® to obtain a benefit

from a third party is clearly disclosed at the same time. (Amended 1/97)

• Standard of Practice 12-3

The offering of premiums, prizes, merchandise discounts or other

inducements to list, sell, purchase, or lease is not, in itself, unethical

even if receipt of the benefit is contingent on listing, selling,

purchasing, or leasing through the REALTOR® making the offer.

However, REALTORS® must exercise care and candor in any such

advertising or other public or private representations so that any

party interested in receiving or otherwise benefiting from the

REALTOR®'s offer will have clear, thorough, advance understanding

of all the terms and conditions of the offer. The offering of any

inducements to do business is subject to the limitations and

restrictions of state law and the ethical obligations established by any

applicable Standard of Practice. (Amended 1/95)

• Standard of Practice 12-4

REALTORS® shall not offer for sale/lease or advertise property without

authority. When acting as listing brokers or as subagents, REALTORS®

shall not quote a price different from that agreed upon with the

seller/landlord. (Amended 1/93)

• Standard of Practice 12-5

REALTORS® shall not advertise nor permit any person employed by or

affiliated with them to advertise listed property in any medium (e.g.,

electronically, print, radio, television, etc.) without disclosing the

name of that REALTOR®'s firm in a reasonable and readily apparent

manner. (Adopted 11/86, Amended 1/07)

• Standard of Practice 12-6

REALTORS®, when advertising unlisted real property for sale/lease in

which they have an ownership interest, shall disclose their status as

both owners/landlords and as REALTORS® or real estate licensees.

(Amended 1/93)

• Standard of Practice 12-7

Only REALTORS® who participated in the transaction as the listing

broker or cooperating broker (selling broker) may claim to have "sold"

the property. Prior to closing, a cooperating broker may post a "sold"

sign only with the consent of the listing broker. (Amended 1/96)

• Standard of Practice 12-8

The obligation to present a true picture in representations to the

public includes information presented, provided, or displayed on

REALTORS®' websites. REALTORS® shall use reasonable efforts to

ensure that information on their websites is current. When it

becomes apparent that information on a REALTOR®'s website is no

longer current or accurate, REALTORS® shall promptly take corrective

action. (Adopted 1/07)

• Standard of Practice 12-9

REALTOR® firm websites shall disclose the firm's name and state(s) of

licensure in a reasonable and readily apparent manner.

Websites of REALTORS® and non-member licensees affiliated with a

REALTOR® firm shall disclose the firm's name and that REALTOR®'s or

non-member licensee's state(s) of licensure in a reasonable and

readily apparent manner. (Adopted 1/07)

• Standard of Practice 12-10

REALTORS®' obligation to present a true picture in their advertising

and representations to the public includes the URLs and domain

names they use, and prohibits REALTORS® from:

1) engaging in deceptive or unauthorized framing of real estate

brokerage websites;

2) manipulating (e.g., presenting content developed by others)

listing content in any way that produces a deceptive or misleading

result; or

3) deceptively using metatags, keywords or other devices/methods

to direct, drive, or divert Internet traffic, or to otherwise mislead

consumers. (Adopted 1/07)

• Standard of Practice 12-11

REALTORS® intending to share or sell consumer information gathered

via the Internet shall disclose that possibility in a reasonable and

readily apparent manner. (Adopted 1/07)

Article 13

REALTORS® shall not engage in activities that constitute the

unauthorized practice of law and shall recommend that legal counsel

be obtained when the interest of any party to the transaction

requires it.

Article 14

If charged with unethical practice or asked to present evidence or to

cooperate in any other way, in any professional standards proceeding

or investigation, REALTORS® shall place all pertinent facts before the

proper tribunals of the Member Board or affiliated institute, society, or

council in which membership is held and shall take no action to disrupt

or obstruct such processes. (Amended 1/99)

• Standard of Practice 14-1

REALTORS® shall not be subject to disciplinary proceedings in more

than one Board of REALTORS® or affiliated institute, society or

council in which they hold membership with respect to alleged

violations of the Code of Ethics relating to the same transaction or

event. (Amended 1/95)

• Standard of Practice 14-2

REALTORS® shall not make any unauthorized disclosure or

dissemination of the allegations, findings, or decision developed in

connection with an ethics hearing or appeal or in connection with an

arbitration hearing or procedural review. (Amended 1/92)

• Standard of Practice 14-3

REALTORS® shall not obstruct the Board's investigative or

professional standards proceedings by instituting or threatening to

institute actions for libel, slander or defamation against any party to

a professional standards proceeding or their witnesses based on the

filing of an arbitration request, an ethics complaint, or testimony

given before any tribunal. (Adopted 11/87, Amended 1/99)

• Standard of Practice 14-4

REALTORS® shall not intentionally impede the Board's investigative

or disciplinary proceedings by filing multiple ethics complaints

based on the same event or transaction. (Adopted 11/88)

Duties to REALTORS®
Article 15

REALTORS® shall not knowingly or recklessly make false or misleading

statements about competitors, their businesses, or their business

practices. (Amended 1/92)

• Standard of Practice 15-1

REALTORS® shall not knowingly or recklessly file false or unfounded

ethics complaints. (Adopted 1/00)

• Standard of Practice 15-2

The obligation to refrain from making false or misleading statements

about competitors' businesses and competitors' business practices

includes the duty to not knowingly or recklessly repeat, retransmit,

or republish false or misleading statements made by others. This

duty applies whether false or misleading statements are repeated in

person, in writing, by technological means (e.g., the Internet), or by

any other means. (Adopted 1/07)

Article 16

REALTORS® shall not engage in any practice or take any action

inconsistent with exclusive representation or exclusive brokerage

relationship agreements that other REALTORS® have with clients.

(Amended 1/04)

• Standard of Practice 16-1

Article 16 is not intended to prohibit aggressive or innovative

business practices which are otherwise ethical and does not prohibit

disagreements with other REALTORS® involving commission, fees,

compensation or other forms of payment or expenses. (Adopted 1/93,
Amended 1/95)

• Standard of Practice 16-2

Article 16 does not preclude REALTORS® from making general

announcements to prospects describing their services and the terms

of their availability even though some recipients may have entered

into agency agreements or other exclusive relationships with another

REALTOR®. A general telephone canvass, general mailing or

distribution addressed to all prospects in a given geographical area or

in a given profession, business, club, or organization, or other

classification or group is deemed "general" for purposes of this

standard. (Amended 1/04)

Article 16 is intended to recognize as unethical two basic types of

solicitations:

First, telephone or personal solicitations of property owners who

have been identified by a real estate sign, multiple listing

compilation, or other information service as having exclusively

listed their property with another REALTOR®; and

Second, mail or other forms of written solicitations of prospects

whose properties are exclusively listed with another REALTOR® when

such solicitations are not part of a general mailing but are directed

specifically to property owners identified through compilations of

current listings, "for sale" or "for rent" signs, or other sources of

information required by Article 3 and Multiple Listing Service rules

to be made available to other REALTORS® under offers of subagency

or cooperation. (Amended 1/04)

• Standard of Practice 16-3

Article 16 does not preclude REALTORS® from contacting the client of

another broker for the purpose of offering to provide, or entering into

a contract to provide, a different type of real estate service unrelated

to the type of service currently being provided (e.g., property

management as opposed to brokerage) or from offering the same

type of service for property not subject to other brokers' exclusive

agreements. However, information received through a Multiple

Listing Service or any other offer of cooperation may not be used to

target clients of other REALTORS® to whom such offers to provide

services may be made. (Amended 1/04)

• Standard of Practice 16-4

REALTORS® shall not solicit a listing which is currently listed

exclusively with another broker. However, if the listing broker, when

asked by the REALTOR®, refuses to disclose the expiration date and

nature of such listing; i.e., an exclusive right to sell, an exclusive

agency, open listing, or other form of contractual agreement between

the listing broker and the client, the REALTOR® may contact the owner

to secure such information and may discuss the terms upon which

the REALTOR® might take a future listing or, alternatively, may take a

listing to become effective upon expiration of any existing exclusive

listing. (Amended 1/94)

• Standard of Practice 16-5

REALTORS® shall not solicit buyer/tenant agreements from buyers/

tenants who are subject to exclusive buyer/tenant agreements.

However, if asked by a REALTOR®, the broker refuses to disclose the

expiration date of the exclusive buyer/tenant agreement, the

REALTOR® may contact the buyer/tenant to secure such information

and may discuss the terms upon which the REALTOR® might enter into

a future buyer/tenant agreement or, alternatively, may enter into a

buyer/tenant agreement to become effective upon the expiration of

any existing exclusive buyer/tenant agreement. (Adopted 1/94,
Amended 1/98)

• Standard of Practice 16-6

When REALTORS® are contacted by the client of another REALTOR®

regarding the creation of an exclusive relationship to provide the

same type of service, and REALTORS® have not directly or indirectly

initiated such discussions, they may discuss the terms upon which

they might enter into a future agreement or, alternatively, may enter

into an agreement which becomes effective upon expiration of any

existing exclusive agreement. (Amended 1/98)

• Standard of Practice 16-7

The fact that a prospect has retained a REALTOR® as an exclusive

representative or exclusive broker in one or more past transactions

does not preclude other REALTORS® from seeking such prospect's

future business. (Amended 1/04)

• Standard of Practice 16-8

The fact that an exclusive agreement has been entered into with a

REALTOR® shall not preclude or inhibit any other REALTOR® from

entering into a similar agreement after the expiration of the prior

agreement. (Amended 1/98)

• Standard of Practice 16-9

REALTORS®, prior to entering into a representation agreement, have an

affirmative obligation to make reasonable efforts to determine

whether the prospect is subject to a current, valid exclusive agreement

to provide the same type of real estate service. (Amended 1/04)

• Standard of Practice 16-10

REALTORS®, acting as buyer or tenant representatives or brokers, shall

disclose that relationship to the seller/landlord's representative or

broker at first contact and shall provide written confirmation of that

disclosure to the seller/landlord's representative or broker not later

than execution of a purchase agreement or lease. (Amended 1/04)

• Standard of Practice 16-11

On unlisted property, REALTORS® acting as buyer/tenant

representatives or brokers shall disclose that relationship to the

seller/landlord at first contact for that buyer/tenant and shall provide

written confirmation of such disclosure to the seller/landlord not later

than execution of any purchase or lease agreement. (Amended 1/04)

REALTORS® shall make any request for anticipated compensation

from the seller/landlord at first contact. (Amended 1/98)

• Standard of Practice 16-12

REALTORS®, acting as representatives or brokers of sellers/landlords

or as subagents of listing brokers, shall disclose that relationship to

buyers/tenants as soon as practicable and shall provide written

confirmation of such disclosure to buyers/tenants not later than

execution of any purchase or lease agreement. (Amended 1/04)

• Standard of Practice 16-13

All dealings concerning property exclusively listed, or with

buyer/tenants who are subject to an exclusive agreement shall be

carried on with the client's representative or broker, and not with the

client, except with the consent of the client's representative or broker

or except where such dealings are initiated by the client.

Before providing substantive services (such as writing a purchase

offer or presenting a CMA) to prospects, REALTORS® shall ask

prospects whether they are a party to any exclusive representation

agreement. REALTORS® shall not knowingly provide substantive

services concerning a prospective transaction to prospects who are

parties to exclusive representation agreements, except with the

consent of the prospects' exclusive representatives or at the direction

of prospects. (Adopted 1/93, Amended 1/04)

• Standard of Practice 16-14

REALTORS® are free to enter into contractual relationships or to

negotiate with sellers/landlords, buyers/tenants or others who are not

subject to an exclusive agreement but shall not knowingly obligate

them to pay more than one commission except with their informed

consent. (Amended 1/98)

• Standard of Practice 16-15

In cooperative transactions REALTORS® shall compensate cooperating

REALTORS® (principal brokers) and shall not compensate nor

offer to compensate, directly or indirectly, any of the sales

licensees employed by or affiliated with other REALTORS®

without the prior express knowledge and consent of the cooperating

broker.

• Standard of Practice 16-16

REALTORS®, acting as subagents or buyer/tenant representatives or

brokers, shall not use the terms of an offer to purchase/lease to

attempt to modify the listing broker's offer of compensation to

subagents or buyer/tenant representatives or brokers nor make the

submission of an executed offer to purchase/lease contingent on the

listing broker's agreement to modify the offer of compensation.

(Amended 1/04)

• Standard of Practice 16-17

REALTORS®, acting as subagents or as buyer/tenant representatives or

brokers, shall not attempt to extend a listing broker's offer of

cooperation and/or compensation to other brokers without the

consent of the listing broker. (Amended 1/04)

• Standard of Practice 16-18

REALTORS® shall not use information obtained from listing brokers

through offers to cooperate made through multiple listing services or

through other offers of cooperation to refer listing brokers' clients to

other brokers or to create buyer/tenant relationships with listing

brokers' clients, unless such use is authorized by listing brokers.

(Amended 1/02)

• Standard of Practice 16-19

Signs giving notice of property for sale, rent, lease, or exchange shall

not be placed on property without consent of the seller/landlord.

(Amended 1/93)

• Standard of Practice 16-20

REALTORS®, prior to or after terminating their relationship with their

current firm, shall not induce clients of their current firm to cancel

exclusive contractual agreements between the client and that firm.

This does not preclude REALTORS® (principals) from establishing

agreements with their associated licensees governing assignability of

exclusive agreements. (Adopted 1/98)

Article 17

In the event of contractual disputes or specific non-contractual disputes

as defined in Standard of Practice 17-4 between REALTORS®

(principals) associated with different firms, arising out of their

relationship as REALTORS®, the REALTORS® shall submit the dispute to

arbitration in accordance with the regulations of their Board or Boards

rather than litigate the matter.

In the event clients of REALTORS® wish to arbitrate contractual disputes

arising out of real estate transactions, REALTORS® shall arbitrate those

disputes in accordance with the regulations of their Board, provided

the clients agree to be bound by the decision.

The obligation to participate in arbitration contemplated by this Article

includes the obligation of REALTORS® (principals) to cause their firms

to arbitrate and be bound by any award. (Amended 1/01)

• Standard of Practice 17-1

The filing of litigation and refusal to withdraw from it by

REALTORS® in an arbitrable matter constitutes a refusal to arbitrate.

(Adopted 2/86)

• Standard of Practice 17-2

Article 17 does not require REALTORS® to arbitrate in those

circumstances when all parties to the dispute advise the Board in

writing that they choose not to arbitrate before the Board.

(Amended 1/93)

• Standard of Practice 17-3

REALTORS®, when acting solely as principals in a real estate

transaction, are not obligated to arbitrate disputes with other

REALTORS® absent a specific written agreement to the contrary.

(Adopted 1/96)

• Standard of Practice 17-4

Specific non-contractual disputes that are subject to arbitration

pursuant to Article 17 are:

1) Where a listing broker has compensated a cooperating broker and

another cooperating broker subsequently claims to be the

procuring cause of the sale or lease. In such cases the

complainant may name the first cooperating broker as respondent

and arbitration may proceed without the listing broker being

named as a respondent. When arbitration occurs between two (or

more) cooperating brokers and where the listing broker is not a

party, the amount in dispute and the amount of any potential

resulting award is limited to the amount paid to the respondent by

the listing broker and any amount credited or paid to a party to

the transaction at the direction of the respondent. Alternatively, if

the complaint is brought against the listing broker, the listing

broker may name the first cooperating broker as a third-party

respondent. In either instance the decision of the hearing panel as

to procuring cause shall be conclusive with respect to all current

or subsequent claims of the parties for compensation arising out

of the underlying cooperative transaction. (Adopted 1/97,
Amended 1/07)

2) Where a buyer or tenant representative is compensated by the

seller or landlord, and not by the listing broker, and the listing

broker, as a result, reduces the commission owed by the seller or

landlord and, subsequent to such actions, another cooperating

broker claims to be the procuring cause of sale or lease. In such

Form No. 166-288 (12/06)

cases the complainant may name the first cooperating broker as

respondent and arbitration may proceed without the listing broker

being named as a respondent. When arbitration occurs between

two (or more) cooperating brokers and where the listing broker is

not a party, the amount in dispute and the amount of any potential