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Warning: Be on Guard! Realtor's Ethical Landmines exists: Don't step on them!

By
Real Estate Broker/Owner with HHMC Hollywood Homes by MC

Realtor's Ethical Landmines: Are we there yet?  Part I

First thing first: Have we forgotten? The Golden Rule: "Whatsoever ye would that others should do to you, do ye even so to them,"

Second: A Need to Know:  We need to know the Perils, and Pitfalls that can lead to the following:

1. Violations

 2. Questionable and unlawful practices which can invite disciplinary actions by the DRE, possible civil and criminal liability and Ethical hearing.

 Are we there yet?

Third: A Thought Provoking Question.

Is it possible to walk in these landmines and not know it or just plain be in denial?

As a Realtor, it seems as if we are experiencing an ethical (or lack of) crisis.  I believe it may start with "Missing Manners" then move into ethical misconduct, which sometimes can end in ethical violations: Then, sometimes move into illegal and criminal violations.

As a result, I believe we should be on high alert and highly informed. Thus this is the purpose of my blog.  A little lengthy I know, but hopeful it will be helpful, but more important push us "To do better."

Let me explain the landmine remark: Usually a landmine is not known until you passed over it:  It is not easily recognized, unaware of, concealed or an unexpected obstacle can surface.  Clearly, in order to "Do the right thing" it must start with being well trained and in compliance with NAR Code of Ethics: see:

http://www.realtor.org/mempolweb.nsf/pages/code.  But, it does not stop there.

In addition, we must be committed to educating ourselves in other Ethical material and courses.  Then, at the same time, we must be more aggressive into practicing daily ethics in our lives-yes, even personal and professional. Why? Because there are consequences involved in which, in the end, we can only blame ourselves.

 Let's look at some other reports and information encouraging us "To do better!"  For example:

DRE Commissioner Jeff  Davi has issued a warning to us about legal and ethical minefields and the growing fraud in Short Sales. We need to take heed: (see California Department of Real Estate: Real Estate Bulletin, Fall 2010: www.dre.ca.gov).

  1. DRE: Real Estate Bulletin: Fall 2010: Pg. 4: Disciplinary action: March 2010-May 2010: Full text of the section is available on the DRE website: www.dre.ca.gov under Real Estate Law and/or Regulations.
  2. California: DRE California, Real Estate Bulletin (California Department of Real Estate, www.dre.ca.gov Fall 2010: Statewide DRE Disciplinary actions involving not just Realtors, but Financial, Lending, Mortgage, and Investment companies:

(a) Los Angeles        151

(b) Fresno                 18

©    Oakland             36

(d) San Diego            21

(e) Sacramento          28

4. Beaty Reynolds writes: (beatyre@msn.com) is a freelance real estate writer and author: Common courtesies are another casualty of the times.

"Agents report that professional courtesies are as rare as no-doc loans:" By Beaty Reynolds reports:

"Is there room for manners in tough times, when foreclosed and REO properties are the norm?  The line between etiquette and ethics, of course is a fine one.  And when one agent's thoughtlessness impinges on another's livelihood, the line is even blurrier."  Although this article zeros in on agents sacrificing their credibility in the process, lack of common courtesies, and lack of follow through:

California Real Estate, November/December 2010, (pg.22):  Missing Manners: A Powerful Article but we need to go deeper: (www.car.org

My Bottom line assessment: I believe it is an ethical challenge involved here; manners are just a small part.  We need to do better!  We can do better! Note: see Part 2 & 3

What's your take on this important topic? What do you think we can do "To do better?" Let me hear from you. Thanks, MC

Email: hollywoodhomesmc@aol.com, M. C. Griffin Campbell, DRE# Broker License #: 01819507;

Short Sales and Foreclosure Resource (SFR) Certification

Seniors Real Estate Specialist (SRES)

www.hollywoodhomesbymcampbell.com

 

 

 

 

 

 

 

 

  

  

  

  

  

  

 

 

Comments (4)

Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

We certainly hear that short sales have the most liability, at least according to our bi-annual legal updates.  This would be a good post to feature in the Ethics and the Realtor Group.

Jan 11, 2011 02:54 PM
Anonymous
MC Campbell

Karen, thanks for your feedback!  Working together we can do better!  Thanks again.

MC

Jan 11, 2011 03:20 PM
#2
John Pusa
Glendale, CA

MC Griffin - Majority of Realtors are ethical and follow the law. However, some Realtors have habit of engage in ethical violations and misconduct. Thanks for the blog.

Jan 11, 2011 04:02 PM
MC Griffin Campbell
HHMC Hollywood Homes by MC - Los Angeles, CA

John,

You're right-"Majority of Realtors are ethical and follow the law."  However, I believe it is our duty-"The Majority" to help, improve and maintain standard.  It is our social responsiblity.  I believe Realtors should 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.  Working together we can do better! 

Thanks John for your feedback.

Jan 12, 2011 11:53 AM