Real Estate Blog - Allowed And Allowable

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Allowed And Allowable

Allowed and allowable!

Unquestionable and proveable!

Accepted and acceptable!

Common and rare!

Good and great!

Educated and knowledgeable!

Many among us will realize that "allowed and allowable" are terms most commonly applied to tax law. Allowed is based on statute, the law as written. Allowable is based on case law, the record of the courts decisions interpreting the law.

If the statutes say some thing is legal, that's unquestionable, that's accepted, that's common, that's good, it doesn't meant that any thing else is illegal!

It's hard to argue with the inexperienced that there is any thing wrong with sticking to the "allowed," "the letter of the law!" I'm an ultra conservative, but I believe in the whole body of the law, the statues and the relevant case law! My clients, my students, deserve the benefits of the whole body of the law!

The point in question, where is the line between practicing real estate and practicing law? I'm not a lawyer, when I went to law school it was to visit our daughter, not to study. I'm not a CPA, I've had one class in accounting. I do have a lot of experience and training in REAL ESTATE! I have always been my client's fiduciary, my client's advocate and as such I provide my advice, my opinion and my knowledge to my clients. That this advice deals in real estate law, contract law, and tax law is unquestionable. But, it's always been incidental to my real estate or mortgage practice. When I teach, write or council it's to train real estate practitioners.

I don't supply answers directly, I ask the questions! I do provide projections, analyses, contracts both standardized and created as necessary, that's real estate! I protect my license and my client in that order, to the full extent of my training and ability. My services are legally allowable, proveable, acceptable, rare, great, and knowledgeable! Which of your clients deserves less!

You're not here to replace the attorney or CPA your job is to conduct and orchestrate the transaction! Now take your wand and lead!

Bill

William J Archambault Jr

The Real Estate Investment Institute

Please see: Michael Clarkson's though provoking article: Realtors®/Brokers - NEWS FLASH !!!! YOU ARE NOT ATTORNEYS!!!!! And Jon Zolsky's response: I Refuse To Shut Up. I Refuse To Be A Robot When some one of Michael's high compatance misunderstands the question of where the line is we have a problem! I highly respect Michael and recommend you subscribe to both his and Jon's bloggs, I do!

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Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org 832-259-7078 or 702-516-1569

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From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr ©The Real Estate Investment Institute ©REII

Posted by William J Archambault Jr on 08/07/2009 10:31 AM

Comments (4)

lawsuit, real estate, standard of practice, under contract, real estate opinion, reii, william j archambault jr, the real estate investment

Originally posted at: The Real Estate Sage at The Real Estate Investment Institute - REII: Allowed And Allowable

Post is included in group: The Ninety-ninth Percentile
Post is included in group: Silent Majority
Post is included in group: Realtors®
Post is included in group: Diary of a Realtor
Post is included in group: America's Best Agents

4 Comments on Allowed And Allowable

AUG

Bill: There are many Realtors who are so afraid of "stepping over the line" that they don't perform as expected. I just had a favorite Realtor tell me that, if her buyer doesn't ask for a Seller's Disclosure, she doesn't offer it. I believe that's falling short of the mark. My role is not to interpret the disclosure but to provide whatever information about a property that's available. Six months, a year, after taking title, a buyer can discover things (during remodeling for instance) that they might have learned before the closing had they had all the information. I always try to envision the scenario, should I find myself standing before a judge.

Jackie Davis

ERA American Realty

Inverness, FL.

Jackie,

I'm opposed to people working beyond their competence! The COC says get help when your beyond your experience.

I wonder what some of today's REALTORS are being paid for? How can you not advise your clients? A REALTOR is not an attorney, or at least not many, they are not a house inspector, not plumber, not a building contractor, not an electrician, not a pool contractor, not a roofer, not a decorator, not an appliance repairman, not a surveyor, and hopefully not a lender!

With most listing accessible on line, lawyers and para-legals replacing the corner gas stations of yeastier year, and so many who don't want the clients in their car I would like to know what these buyer's agents do? The only thing some seem to do is unlock the door.

How do you not advise your clients on the scores of reverent issues regarding buying property?

Would you keep quite if you found a 60 amp electrical box with fuses? I found one with all the fuses blown yet the lights on, I looked all 4 circuits had pennies behind the fuses. I've advised on encroachments, on potential title problems, land contracts, and deeds subject to. Have you never questioned a listing with only one name but obviously married sellers? Do you point out sagging roofs or missing shingles? How about landscaping that slopes towards the house?

All of these areas come under some one else's licencee, but you're the only one there, you're the one with a fiduciary duty to the client.

Yes! You have to be extremely careful what and how you say things, but you can have even more liability by saying nothing.

"I just had a favorite Realtor tell me that, if her buyer doesn't ask for a Seller's Disclosure, she doesn't offer it. I believe that's falling short of the mark."

I hope she doesn't work for or with you! In some states this could be criminal! In all states with holding such information is going to create liability.

"My role is not to interpret the disclosure" if you don't interpret it for your client then their attorney may! Their attorney may well explain the difference between a hair line crack in the garage floor and a cracked foundation is equal to every thing you own in addition to the limits of your E & O policy!

When you feel the need to refer your client to another licensed professional, I suggest you do so in writing and have a copy signed by all of your involved clients!

When the economy forces some of these people to new careers are they going to refuse to ask "Do you want fries with that?" because we all know Doctors and nutritionist would recommend against the fries!

We need all the component people we can get, our clients deserve no less!

Bill

Bill,

Obviously this is not a black and white issue. You suggested that educaton can be a remedy. Still just taking courses, and passing tests is not much without that ability to see things in perspective. The position that I would not give out information that I know, and which could affect your decision should you have known it, is shocking.

But nor unusual. Take a scenario when the agent is showing your listing, and you are present (seller wants you to be present, or some other reason), and the other agent is saying something which they do not understand, and you have to stand their with a smiling face. Happened to me a few times.

Jon,

To me eduction and experience go together!

I've been there with the other agents, I will not embarrass them in front of their client, but you can bet their broker will get an ear full! I've never been know for keeping my opinions to my self!

You're to becommended for your position in this depate!!!!!

Well done!

Bill

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