"All Real Estate Markets are Local"
If our clients are best served by dealing with local Real Estate agents who know their market and the local issues affecting it, why would we want to open ourselves up to the Law Suites that will follow from acting as agents with the fiduciary responsibility of having local knowledge of a Real Estate market 100's of miles away?
We should stop this madness, unless CAR believes REALTORS contribute nothing to the Real Estate Transaction and we are just glorified taxi drivers who are over paid or maybe we are nothing but a antiquated "Good Old Boys Club".
All I see is REALTORS are giving up the last primary benefit they have to help their clients. REALTORS gave up their local ownership of the Real Estate market history to the public by selling to "RE INFOLINK" and now they are going to give up the last primary benefit they provided to their clients, local knowledge and expertise.
What will stop Internet companies from providing Statewide listing information from calREDD and then writing a sales contract on their Sellers property and not even being local, requiring the Listing Agent do all the work with the increased liability of not knowing what the Buyers have been told. Attorneys are going to have a field day!!!
This was the CAR response and my response back:
Laura Williamson Senior Counsel California Association of REALTORS®
525 S. Virgil Avenue Los Angeles , CA 90020
Dear Laura,
Thank you for your prompt response, unfortunately your position was:
Until that time, I can offer a few clarifications that you may find reassuring. Our research shows that although buyers regularly use the internet to research homes, when it comes time to make an offer they use a local REALTOR. We don't expect that the statewide MLS will change this practice.
My answer: When we gave RE Infolink our data base of Real Estate history, they didn’t say they were going to allow anybody who wanted to have access to it get it. Unfortunately, in the practical application of this new policy, I see the same thing happening with Internet companies offers kickbacks if one allows them to be the selling agent.
I am listening to my fellow agents who are doing all the work on their escrows now, and they are sure something is amiss, although they can’t prove the kickbacks the buyers are getting. So, the Listing Agent does all the work and then gets sued with the Selling Agent for the Selling Agents not meeting their fiduciary duty to the buyer who wasn’t properly informed about some well known local issue or...
What am I missing!!!
Your position was: In addition, we support the right of brokers to decide how best to market their listings. As such, the calREDD listing information will not be disseminated to third party marketing websites unless permitted by the broker of the listing.
My response was: Unfortunately, the REALTORS are so desperate for an offer for their Sellers, they will ask their Sellers what they want to do and do they care about the process we go through or our legal liability– NO, so they will approve this or sue a REALTOR for not offering this choice.
You are an attorney so you know I’m right – the Brokers won’t have the right to decide how best to market their listing after the first law suite is filed!!!
Your Position was: Lastly, calREDD will not eliminate the requirement for competency (under the law or the Code of Ethics) in a particular transaction. calREDD is being created to provide members with greater access to real property information, but it will not and is not intended to replace the need and value of local knowledge.
My response was: I have had friends who volunteered for the “Ethics Committee” of our local AOR and they have all complained about how ineffective the process was and all have quit. The idea a local AOR is going to be able to afford to investigate or even have an impact on Brokers 400 miles away is ridiculous.
What good is greater access to property provided by calREDD, located in a market REALTORS have no local knowledge of, except to create opportunities for improper transactions which will even lower the REALTOR’s professional status in the public's eyes.
Daniel O. Boor
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