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Disclosing Working Relationships in Colorado, or NOT!

By Dan Hopper

Real Estate Broker/Owner with Dan Hopper - Gold Way RE

January 15, 2012 05:45 AM

Denver, CO - Wow, what a strange day for me while working a showing on an office listing, yesterday.

I happen to be in the office when a call came in from a prospective buyer, wanting to view a property in the prestigious community of Legacy Ridge. After, interviewing the buyer with my normal questions and inquiries, i.e: are you currently working with a broker, have you been to a lender for pre-approval, and so forth, I decided to meet with them later in the afternoon.

I met with one of the buyers, who showed up 10 minutes late, and once I greeted her, I asked her to review a disclosure document that explains the "working relationships" we have in Colorado. Of course, she was very curious as to what this was all about.

I proceeded to explain the purpose of the disclosure document and she proceeded to argue with me that she was not signing anything or commit to anything. Then the other buyer, her boyfriend showed up, and after introductions, I asked him to review it the document and I proceeded to explain the purpose of this, again.

I explained to both of the buyers this is ONLY a disclosure doc, NOT a contract, which it states in the form, and that they are getting way ahead of any kind of commitment or obligation to anyone.

I was absolutely surprised and the reluctance to review and acknowledge that I have presented this document and explained the working relationships. Both argued with me that they did not want to be obligated to anyone. Then was reminded by both of them, that they have looked at numerous properties and have NEVER been asked to review this document or had this explained to them by any other broker.

Needless to say, I found this unacceptable and told them so, and said that I am being up front and honest with them about the importance of knowing how the real estate broker works and represents you. I mean, it is only required that ALL real estate brokers present THIS document before showing homes, by the Colorado real estate commission.

So, after about 10 minutes of the explaining WHY I do this, and told them they could view the property but I wanted them to sign the document or write across it that they refuse to sign. At least I fulfilled my obligation of presenting it before viewing any property with me.

Of course, they refused and walked out of the property!

This action just drives me nuts. First off, why OTHER real estate brokers ARE NOT fulfilling their obligations with informing the general public about working relationships as required by our real estate commission. I call it LAZINESS, and the fear of NOT explaining it correctly!!

Secondly, I do use this process to determine if the information I have received over the phone was INDEED correct or not. What I mean from this, is... are they in fact working with someone OR have intents to work with another broker they have in mind?

I believe that the reluctance to sign a DISCLOSURE doc, satisfies my mind that they indeed have someone else, and just did not bother to be up front with me.

Now, to work this process into my phone conversation, first!! Do you think other real estate brokers will do their disclosure obligations up front, too??

Thanks for reading this, Dan Hopper.

View My homes for sale at www.danhopper.com.

Dan Hopper specializes in loan modification assistance and short sales in Denver, Colorado. Denver Loan Modification Help, Denver Short Sales. Denver Realtor. Westminster, CO Loan Modification Help, Westminster, CO Short Sales, and Westminster Realtor.

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The views expressed here are Dan Hopper's personal views and do not reflect the views of RE/MAX Alliance.

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Paula Bradfield

Bradfield Ramsey Group - Salida, CO

Your Salida Colorado area Realtor Team

Dan, I have recently moved up here from New Mexico, into an office which is very strict about the disclosure. And, I bombed 2 times in a row, similar story. After asking a dozen good agents, I have started doing it differently. Since they do NOT have to sign the document, I just hand it to them, letting them know in advance it is state law to be protected and they should expect this from any agent.. If they don't get it they should ask for it. I then mention at the end of the floor call showing that they can sign it if they want... I do get SOME signatures but almost never. I then bring the form back, file it with our disclosures and we are good.

You are correct, they say they have NEVER seen this before. Hmmmmmm

Jan 15, 2012 05:54 AM

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Real Estate Faster - Los Angeles, CA

That must have been a frustrating situation! At least you fulfilled your obligation by informing them of the "working relationships".

Jan 15, 2012 05:58 AM

Dan Hopper

Dan Hopper - Gold Way RE - Westminster, CO

Colorado Broker / Referral Services

Thanks Paula, for the comments and confirmation about "never seen this before"; and I ask them to sign the form just to see if they will follow my directions.. if not, why would I ever believe they will work with me down the road!

Deven, it does get frustrating from time to time. But, I prefer to do it right, up front!

Jan 15, 2012 06:05 AM

Kathy Sheehan

Bay Equity, LLC 770-634-4021 - Atlanta, GA

Senior Loan Officer

Dan, I also encounter this on the mortgage side when it comes to disclosures. I really don't worry too much about others, I just try to do the best I can and make sure I am following all of the rules.

Jan 16, 2012 06:49 AM

Karin Lundeen

Keller Williams Realty - Denver Southlands - Centennial, CO

Realtor Centennial Homes For Sale

Hi Dan, I think agents don't use it because they hope to build a relationship and they don't want to turn them off on their first meeting, in hopes of developing a relationship. However, I am with you that it is required and should be discussed at the first meeting. I do it, and try to get signatures but I don't worry too much about it if they won't sign. At least I know I am doing what is right! Sounds like you are too!

Jan 18, 2012 01:54 AM

Dan Hopper

Dan Hopper - Gold Way RE - Westminster, CO

Colorado Broker / Referral Services

Karin, you are correct.... they are afraid to scare off the potential client. This document STILL needs to be acknowledged by signature or refusal of signature. The real estate commission is going to ask for it when they audit.

Beyond that point.... I still like to get the potential buyer to sign it for my way of screening them. If someone refuses to sign, 90% of them are in fact working with another broker, and just did not want to tell you that in order to see the property at that moment.

Jan 18, 2012 02:47 AM

Roy Kelley

Retired - Gaithersburg, MD

Many agents do not handle disclosures very well and it is a skill that needs to be practiced. I want the agency disclosure signed before I unlock the door of the home they want to see.

Have an outstanding day and be sure to have your camera in hand to capture the special moments.

Dahlias at Brookside Gardens IMG_5734

Photograph by Roy Kelley

Roy and Dolores Kelley Photographs

Jan 18, 2012 10:01 PM

Dan Hopper

Dan Hopper - Gold Way RE - Westminster, CO

Colorado Broker / Referral Services

Thanks Roy, you are so correct. We need the commitments, before we work for them.

Jan 19, 2012 12:34 AM

Kathryn Acciari

Central One Federal Credit Union - Shrewsbury, MA

Mortgage Loan Originator

I don't understand why this is such a big deal. The disclosure exists to protect the consumer! Agents need to get past the fear that a potential client will walk when asked to sign a simple disclosure. Either the agent did not explain it well enough, or the potential client is a user. Unfortunately, there is no consistency among agents, and that "client" will find an agent to push around.

Jan 19, 2012 11:16 PM

Betina Foreman

WJK Realty - Austin, TX

Realtor, C.N.E., with WJK REALTY

Dear Dan,

We have similar forms in Texas that are required. I have had many people tell me "nobody else gave us this form when we looked at their home". To which I reply what "they" do is not my concern, I'm only concerned with doing what is right for my clients and my Broker and the state. So if you want an honest agent that makes sure all the i's are dotted and t's crossed then you will hire an agent that gives you all the required forms and explains them to you. I also have two copies of all forms, one for my file and one for them to keep. Usually this works. I wish you the best and know it will happen for you because you ARE doing the right things.

;)

Jan 21, 2012 04:40 AM

Joan Cox

House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO

Denver Real Estate - Selling One Home at a Time

Dan, if buyers are "lookers", rather than buyers, I wait until they express some interest, otherwise it is wasting our time. With sign calls, some of the calls are really neighbors wanting to get inside without the seller knowing, and no reason. It is quite frustrating!

Jan 22, 2012 02:09 AM

Dan Hopper

Dan Hopper - Gold Way RE - Westminster, CO

Colorado Broker / Referral Services

You are so correct, Joan. When you take the time to phone interview and them meet them at the property, and they THEN refuse to acknowledge your working relationship disclosure.... guess they do not get to view the property.

Jan 23, 2012 02:39 AM