You never can tell when a discussion regarding professional standards for Realtors might pop up. I was watching a Chicago Blackhawks game at a local watering hole with some of my Br Rice alumni last night when the shirt I was wearing started a conversation regarding professional standards amongst Realtors. My brand new button-down, shirt with the Mainstreet Organization of Realtors anniversary logo caught the eye of "Bob" who asked me what was Mainstreet?
I explained to him that is was a local organization for Realtors and that I had just attended a professional standards workshop. By the look on Bob's face it wasn't to difficult to see that he had an issue with Realtors. Before I could say a word he responded with " that's pretty funny, professional standards for Realtors". I asked him why he felt it was funny and he went on to tell me the story of the home he purchased eighteen months prior and was in the middle of litigation.
Being freshly out of my annual workshop and wanting to prove my worth as a Realtor, I replied " too bad it didn't just happen." He asked why that was and I told him that he could have filed a complaint against his agent with Mainstreet if he felt the agent didn't act in a professional manner.
Now I'm not encouraging people to file complaints against their Realtor when transactions aren't exactly as smooth as they would have liked, because face it, the transaction are more difficult than ever. What I am encouraging is that Realtors and consumers alike to contact their local associations if they feel their Realtor didn't act in a professional and/or ethical manner. Bob told me that the public needed to be made aware of their options when these types of things happen.
So, here you go Bob. Licensed real estate agents can join an association that gives them access to the local multiple listing services ( database of properties for sale) amongst other services but we can talk about that more in-depth at a later time. When an agent joins an association he or she is actually joining three separate organizations, The National Association of Realtors, The Illinois Association of Realtors ( as in my case) and the local association. Remember my shirt? What all these associations have in common is that all of the members subscribe to The Code of Ethics and Standards of Practice of the NATIONAL ASSOCIATION OF REALTORS®
What is important to know about the code is that it parallels national and state licence laws. Now every state is different but it may be safe to say that if a member has violated the code he or she may have also violated the license laws in their respective states.
O.K. I think the buyers agent violated the code of ethics, now what? Call your local association and they should send you the forms and documents you need to file a complaint. The important thing to remember is that you have 180 days from the time you reasonably knew that you had a complaint.
Once you have filled out the forms and returned them to the local association they will be forwarded to the Grievance Committeeman where it will be decided if there is a reasonable complaint and if the complaint should move forward. The committee's job isn't to see who is right or wrong, just to see if the complaint has merit much like a grand jury.
When the complaintant's case goes forward it will be heard by a panel of the respondent's peers. During the hearing the complaintent will have the opportunity to present their case and likewise for the respondent. Each party will also have a chance to cross examine the other party along with giving a closing statement by each.
After the hearing, the panel will deliberate on what was just presented just as a jury would in a court case. The panel is made up of a chairman and four panel members which have no affiliation with either of the two parties. Unlike a court-case the chairman acts as the judge and the jury foreman.
If the panel finds that the respondent has violated the code of ethics, many things can happen depending on the severity of the violation. A letter of reprimand can be placed in an agents file for a less severe violation or a hefty fine with additional required education for a more serious violation. No case is ever the same and neither are the decisions or the actions that are applied.
There are probably some things I have left out but if you have any questions regarding professional standards please don't hesitate to call.
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38 Comments on What to do When Professional Standards Are Not Professional?
Jon- Depends on the board?
Bob - Thanks I'm on the board of directors and can't sit on professional standards and I miss it.
Pam- 180 days can go by pretty quick. Like I stated, I'm not encouraging people to file cases on every single thing but I am encouraging them to take action when need be.
Navona- They don't take time to learn.
Brian- You're right but they should.
Renee- We are the organization, let's spread the word.
Part of the problem with consumers and REALTORS is the disconnect between our rules, regs and reality and the perceptions of the public. They don't understand the difference between transaction broker, buyer's agent and why you WOULDN'T disclose information that seems logical to them. Until that disconnect is addressed by REALTOR organizations, we can expect more of the same.
I think it's great for the public to know that they can file a complaint if needed. Thanks for posting.
Joe: There were a few good messages to take away from your point. The first was that our industry's reputation and relationship with the public is obviously not what it should be. And .. I said the industry's .. not just agents, as I'm a lender. Something that, if implemented, your group/organization's efforts should improve. So salute! You go! Secondly, if we within the industry don't address and confront the issues head-on and do something about it, nothing will get done. It's good to know that there ARE avenues being made and taken in this regard. Again, salute! And as far as the process being a long tedious one ... I think that's good. Otherwise, false allegations and actions could be taken in trivial cases or in retribution. I guess finding that mix between too hard to accomplish and not hard enough is a fine line ... but at least your organization is tackling it.
And lastly, I have a friend that is a Brother Rice alumni. Not sure of age on your part, but my friend is Richard Stringham of Stringham Insurance Agency in Mokena. Small world .. and I hope you both have the pleasure of knowing one another. I hear of Brother Rice's outstanding accomplishments all the time!
Good to meet another "local" in the industry ...
Gene
Joe,
Most of the time when a consumer complains to me about an agent, I later find that THEY were the problem. But sometimes, there are those out there who are "scary" to say the least. The Code of Ethics calls on us to police our industry. I am glad for your post!
kp
Hi Joe, Great post! Go Hawks!
Ryan, I'm sorry but I missed your post earlier. You can have your agents go to JoesGotABlog.com I have the pos there too.
Lisa- Like I told Renee #18 we are the organization, spread the word.
Whitney- Thank you
Gene- Good points and unfortunately I have never met Richard he's a little older than me.
Karen- Thank you, I hope it helps you.
Linda- Thank you but this weekend is football Go Bears
I'm a consumer. If I get mistreated by a slimy Realtor and I take the 3 hours to fill out the paperwork to complain, what happens to the slimy Realtor? Can he or she still proceed to take advantage of other consumers?
One way to improve the reputation of your profession is to thin the herd. If these slimy Realtors were kicked out of the industry, it would help everyone involved.
Lewis- As I stated it depends on the severity of the infraction. As far as "slimy" as concerned I don't beleive every case is work of a slimy Realtor. There are instances where the Realtor just didn't know an better andwill probably not make that mistake again. There can be stiff fines and education requirements for the slimy. If the slimy doesn't clean up their act they can lose their privledge as a Realtor. They can also lose their license if the infraction is severe enough.
Hi everyone,
This is "Bob".
As a consumer who happened to purchase a home at a time when nobody was buying (March 2009), and, being a first-time buyer, there were so many things I didn't know that I wish I had known now.
My "agent" was a dual agent. I had thought that going this route would help expedite the process between buyer and seller. I had also known the agent for 4 years prior to my purchase, so I had put a lot of trust in him and thought he'd take a more vested interest in helping a first-time buyer. Let's face it, it's not like clients were kicking down the door at that time to make a home purchase.
Needless to say, whether the seller "disclosed" information to the agent and it wasn't relayed to me, or, if my agent didn't ask the seller the questions I was asking, the point is, an honest answer (from either the seller or aganet) about the condition of an inground pool (which was unable to be inspected in the middle of the winter) and its functioning drain and plumbing, would have STOPPED me from purchasing the home. But, I was reassured by my agent munerous of times that nothing was wrong with the pool and that it was functioning the previous summer (which I've since learned is far from the truth).
Now, 20 months later, several thousands of dollars spent in litigation, and the loss of use of a backyard (which is about 50% of my lot size) since we purchased the home, I wish I was aware I could have registered a complaint.
Joe opened my eyes with the information he provided to me the other night. And, while I'm glad to know that many of you out there take pride in the service you provide and the job you do, the reality is, the "public" is never properly informed about what they can do when something goes wrong.
In my opinion (as a consumer) any agent that would tell me up-front about these associations that are out there and my ability to register a complaint if something went wrong, would tell me I'm dealing with an ethical and honest agent who is looking out for my best interests.
To those of you that provide that information to the public - kudos! I wish you all the best. For those that don't tell your clients this information, you may want to consider it.
Thanks again Joe for your insight. You now have a client (and someone that would be happy to recommend you friends and family) for life.
Sincerely, "Bob"
Hi Joe,
I'm a little late to this party, however, when "slimy" was mentioned it hit a hot button with me as well! I think all of the comments on this post are right on. This may become a post in itself, and I don't mean to do that.
I have been a honest hardworking REALTOR for over 21 years, owned a franchise with my wife, been on a few professional standard committees in my time, and have always practiced that my clients needs come before any commission monies I may earn. I want to give an example of the other side of the story...
The prices, names, and some non pertinent information have been left out to protect the innocent (us). I also will not mention or talk negatively regarding any of the parties to this transaction as it has been over and done with for 5 plus years and I have moved on.
In 2005 at the height of our market here, we purchased a home at the beach...our dream home...at full price from listing agency A. We had been looking for quite awhile and this was perfect and priced near our budget so we penned our offer as our own buyers agents. It was on the market for 4 days, earnest money deposit of $5000, close in 45 days.
When our home inspector starts his inspection the seller will not let him in and states the house is not for sale. I call the listing agent to find out what is going on...sure enough the seller has called us "slimy agents" (my wife, listing agent, and myself) and threatens to sue all the companies, and agents involved for taking advantage of him for conspiring to sell his house for less than fair market value. Which he does, and also includes our board, the NC commission and anyone else he can involve.
This goes on for 18 months, we waste countless hours regarding this case, and really do not even want the house now. We obtain legal counsel (total cost over $10k) and now are forced to purchase this house through mediation for $56K more than our initial sales price from day one. Why go to mediation and pay more for it?? Because our attorney thought it was the best for us and it would satisfy the poor consumer who knows he will win his case against us. I of course do not want to settle, I do not want this house, I'm out money, time and there is a chance my wife and I could loose our franchise and our license.... could this happen? of course it could!! My legal counsel said it would be the worst day of my life...he was right!! Because a consumer has the right to make complaints. I do not have that right. I and my wife have gone on with our life we "resold" our dream house a few months later, broke even, and are much smarter and wiser to "slimy" consumers who complain.
Dick Beals
Hi Joe, Just recently resolved a transaction where the attorney involved decided not to process the paperwork for the sale. It took over a year but the state bar finally put enough pressure on him that he decided to leave the state. Best of 2011 to you !
Great info. I'm always interested to hear the perceptions of our fellow practitioners. The irony, of course is that the type of agent that is interested enough in his profession to be AR regularly is not likely to be one of the "slimey" persuasion. We amust continue to attempt perfection, even if it's not realistic. Let's look at it positively. Here in Utah, the number of complaints has stayed fairly steady for the last decade, although the number of members has doubled, then dropped by a third. I'd actually love to see more Realtor police themselves, rather than worry about the time or onconvenience. In this State, the penalties have some teeth, and we work closely with the Division to make sure the bad guys can't play in the pool anymore. Most of us that are serious won't risk the fine, the loss of license or both. Those that do deserve what they get. Thanks for the great info!
Well done Joe! You are dead on. You set the example of operating ethically and as you know you are often my first call in questionable situations, whereby there is a need for clarity. Keep up your good works!
Well said, Joe. By being transparent about the professional standards process, agents can raise their standing in the public's view.
This really makes you pay attention, and points out the need to make sure clients are informed upfront of our duties to them, the Code of Ethics,and the procedures for filing a complaint when something goes wrong. Handing them the written "Consumer Notice" (in PA) and saying "read this" is not enough. Also, the need to "own up" to our mistakes, acknowledge and fix them!
Joe,
Having worked for a Broker as a Technology Director, then for the Regional Office as a Technology Director I have since gotten my Reall Estate License. Being on the "support" end of franchises/Broker Owners and Agents I have been behind the scenes from the Regional Franchise Support end of consumers filing complaints against agents.
In some cases, the complaint(s) were warrented, some weren't, but here is my take where the entire profession suffers.
The first day of my Real Estate pre-licensing course, the instructor told us that we needed to print out the first 62 pages of the Indiana License Law and that we would need to know this for the state part of the exam. He then proceded to tell us to disregard the part of the law that stated the classroom requirements were not the "40 Hours" that the state license law requres, but in fact, 56 classroom hours in order to pass the state exam.
So there is an Indiana State Statute that states that I, as a Real Estate License candidate, need to have 40 classroom hours, when in reality it is 56? And even though the statute says 30, I'm not allowed to sit for the exam without my certificate/diploma that proves I've taken 56 hours?
This raised my curiousity further, and I started to "research" just who are the people that sit on the Real Estate Commission. The person for my district of the Real Estate Commission happens to be a former Broker that I in part, worked for. This same Broker, who hung one of his "partners" out to dry, which ended in the termination of the franchise I originally worked for, retained his original franchise.
In my role at the Regional Office, I then learn that this same "Broker" had not been paying his fees to the Regional Office, which is part of the Franchise agreement. As the Reginoal Office is preparing legal paper work to enforce and collect what they are owed according to Franchise Law, this same Broker and the other co-owner/Broker of this Franchise file bankruptcy!?
And then, in order to "save face" for everyone, namely the agents under this Broker, the Regional Office works with another Broker to 'purchase/merge' the two Franchises together.
And this Broker/Owner who filed bankruptcy sits on the Real Estate Commission? And consumers are supposed to feel safe and protected, knowing there is a commission that they can file a complaint with. And members of the commission conduct business in this manner?
Lets call it what it is. There is Real Estate, there are excellent Real Estate Agents. There is the Politics behind Real Estate, and those that know what they can get by with. In the end, the excellent Agents conduct themselves in a professional manner and follow the guidelines and standards like they are supposed to. Unfortunately there are some that don't and even more unfortunate, these agents know what it takes for a consumer to file a complaint.
When it comes to consumers making a choice to keep a roof over their head and their credit ratings in tact, the task of filing the pile of paper work to even file a complaint more often than not will be low on the priority list.
Oh, and the Regional Office is also supposed to have a "Principal Broker" just like any other Real Estate Office, but they do not and have not for the better part of the last three years. What they "use" as their Principal Broker is, a former employee who has a PB license. They also use the former employee's MLS account to gain access to MLS data, which violates Commission rules as well as MLS rules.
As a first time buyer, the consumer is relying on people who are supposed to "know". From the top down, there are huge flaws in the system, at least in Indiana. But I don't see anyone too interested in "righting the ship" so to speak.
I say follow the money. The State gets its money, the Commission gets it money, the Franchisor's get their money, the Brokers get their money and the agents get their commission splits. And if a few consumers get the shaft along the way well, most of us follow the rules so, that's good, yes?
Hmmm... Keeps me wondering!
I read this yesterday and again now today. Dick Beals' comment is just horrifying. He is right!
It does not matter who does what or if we screw up or NOT. The consumer can complain, cry foul and tie us up in court for years and thousands of dollars.
"Bob" - Thank you for the inspiration for this post and the plug on Facebook.
Dick- I'm sorry for your situation I hope for everybody'd sake that wass a unique case.
Bill- Kudos to your state bar. Have a great 2011
Chris- sounds like Utah is a great place to work.
Nina- Thank you as always.
John- Transparency is key
Jan- I somtimes think a baseball bat is in order.
Don- You're preaching to the choir, I live in Illinois. My Ex- Governor now lives in your state.
Erica They won't Don't be affraid to communicate because when we don't we lose.
Joe: Hope you have an opportunity at some point to meet your fellow "Brother" Rice alumni ... as it sounds like you and Richard have much in common. Richard is extremely community minded ... and your profile certainly indicates the same about your interests and activities. I see that you are an avid golfer. In that .. you and I are "brothers" ... as I too love the game and play as much as Illinois weather (and some travel) allow. Hopefully this spring is not far away and we'll be back on the links again soon. You have a standing invitation for 18 holes as soon as the weather breaks ...
Gene