I just attended a class on risk management for real estate agents. The class was taught by an attorney that has litigated hundreds of cases on behalf of buyers, sellers, and of course agents. The presenter offered some positive advice on how to avoid complaints and ultimately litigation when handling real estate transactions.
This isn’t the first class of this type that I have attended, yet regardless of how many I attend, there is always the one or two agents in the class that seem to have the wrong idea of what their role should be in the real estate transaction.
In one case an attendee argued that his role was simply to act as a facilitator. To make sure all the paperwork was completed in accordance with the Department of Real Estate’s standards. His viewpoint was that the buyer or seller was solely responsible for the decisions they make regarding the sale of a home. This gentleman clearly saw his need to earn commissions as superior to the needs of the clients.
Of course, we know that the role of the agent goes much further than that of a facilitator. The instructor cautioned the student, but I am not sure he convinced him to change his thinking.
The Arizona Administrative Code (ACC) that is administered by the Department of Real Estate (AZDRE) section R4-28-1101, Professional Conduct, goes into great lengths to explain the role of an agent and their duties to the client(s). One of the first and simplest statements in the code is written as follows, “A licensee owes a fiduciary duty to the client and shall protect and promote the client’s interest.” The word fiduciary is the keyword in that sentence.
When you look up the term fiduciary in the legal dictionary you will find a definition similar to this one:
An individual in whom another has placed the utmost trust and confidence to manage and protect property or money. The relationship wherein one person has an obligation to act for another's benefit.
Quite clearly, the role of an agent goes well beyond the role of a facilitator or salesperson. As an agent, your duty is to protect the client's interest above your own, Even if that means that sale must not go through and you will not earn a commission for all your hard work.
In any industry, you will find some people who are only in business to make money without regard for the client or customer. We see evidence every day on the evening news. As an agent that takes their role seriously, I can only hope that through better education and better policing by the brokerages that we improve on our professional conduct and ultimately weed out those that are only in it for the money.
Real Estate is a service industry. If you aren’t providing the best service what are you offering?
Joe Domino is a Realtor® serving the Phoenix & Scottsdale metro area. You can find more great information by visiting his website at www.Scottsdale-AZHomes.com.
Comments(3)