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Real Estate Ethics in Nutshell

By
Real Estate Agent with eXp Realty 2021016812

Here is almost everything you need to know about real estate ethics:  Follow the Golden Rule.  Do unto others as you would want them to do unto you.

Yesterday I sat in an NAR ethics class.  I was somewhat surprised by how many agents did poorly on the quiz questions.  There was one question that I may have been one of the few out of over one hundred agents to get it right.

The question was if an agent calls on a listing and asks the expiration date, if the listing agent refuses to give that information can they contact the seller directly?  The answer is under the C.O.E., yes.  I knew that from discussions here on Active Rain. 

When dealing with ethics, you take the COE, the state law, the local COE and use the strictest one.  In this case there is an even higher authority.  I would never do it period.  I follow the golden rule.

As real estate professionals we should know the COE and the laws like the back of our hands.  When we come to a situation where we are not sure, consult your broker and always follow the Golden Rule.  If you are not sure it is most likely not OK.

In the end there are two agents on every transaction.  When you list a home for sale you are depending on other agents to help sell it.  When you have buyers you need to cooperate with other agents to find and get them in the home of their dreams.  So even if what you are doing meets the letter of the law or the COE, it may not meet the Golden Rule and it may hurt your reputation among other agents in the area and your clients.

Posted by

 

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Randy L. Prothero, REALTOR®

Broker-in-Charge, ABR, AHWD, CRB, CRS, e-PRO, GRI, MRP, SFR

eXp Realty

Team Leader - "The Prothero Group"

Randy Prothero is well established as an expert in working with military / VA clients and first time home buyers.  His home seller's (listing) campaign is one of the most aggressive marketing programs in the area.  His luxury home listings sell faster and for more money.

Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) Performs mediations and ombudsman services for the Board of Realtors.  To improve overall professionalism in his area Randy also offers classes for real estate agents. 

www.HawaiiRandy.comOahu (Honolulu County) Property Search  Hawaii Military Relocations

Comments(75)

Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

Gary W. - You can't go wrong.

Brendan M. - That is a decision you have to make.  I would never do it.  There is a lot of other business I can go after.  I do not need to crowd the other agents in my market.  If I damage my relationship with them, it will hurt my clients.  I depend on my reputation and relationships with the other top agents in my areas to help sell my listings.

Brendan M. - So far I have not had one agent call and ask me for the expiration date.  If they did, I would give it to them.  I would also have no respect for that agent.

Jun 30, 2008 04:29 AM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

Allison S. - Thank you for the kind words.

Emily L. - The question is how do you want other people to feel about you?  That is really the point.  You conduct yourself how you want to be remembered.

William F. - I have run into a few.  They make interesting and educational blog posts for sure.  Fortunately they are the minority.

Jun 30, 2008 04:32 AM
Jeremy Blanton
Myrtle Beach Homes Blog - Myrtle Beach, SC
Myrtle Beach REALTOR®- myrtlebeachhomesblog.com

Randy, I am with you...I am not calling, Period!

Jun 30, 2008 09:26 AM
Phil Victor
Top Tier Properties - Richmond, VA
Richmond, Virginia Homes, Real Estate & Property Management

Randy, great post!  Following the Golden Rule is of the utmost importance when working with a client, another agent or the public-at-large.  Unfortunately, too many agents tend follow a different principle, "Gold Rules".  Of course, this rule may pull in a quick buck, but it is damaging to long-term business, relationships with other agents and to the public's perception of our industry.

Jun 30, 2008 10:30 AM
Anonymous
Anonymous

Here in Indianapolis more COE violations are reported on agents with over 15 years experience or more. The more experience agents cannot remember the rules.

Jun 30, 2008 10:31 AM
#60
Richard Byron Smith, NMLS #184479
Mortgage Loan Officer, Fairway Independent Mortgage Corporation NMLS #2289 - Chattanooga, TN
Mortgage Loan Officer

I am not sure that the Golden Rule can be used to adjudicate disputes. There needs to be an ethics code that addresses specifics.

Recently I wrote a post asking mortgage originators to identify tangible measures that a customer could use to evaluate the ethics of an originator. I  did not get the tangible answers that I had hoped for.

My suspicion is that the COE for agents is grounded on disputes and actual situations that arose. Ethics is a hard thing to administer when opposite sides are in conflict.

Richard

Jun 30, 2008 11:21 AM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

Jeremy - I think that is a good practice.

Phil - I am amazed how many people think so short sighted.  You are so right.  Your reputation is so important in this business.

Indianapolis - That is a sad statement about your market.  I have not seen that here.  Those who are the violators will not last that long.  We live on an island and a bad reputation will kill you.

Jun 30, 2008 11:41 PM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

Brendan - I can not disagree with you more.  It is attitudes like yours that give our industry a bad reputation.  Are we selling used cars or the most expensive thing in our clients lives?  Contacting another agent's clients does not make you or our industry look good in that client's eyes.  It sure will not help your reputation with area agents.

That practice will also have negative effects on your clients.  When you list a home, will the other agents in the area go out of their way to help you sell it?

I am not worried about another agent stealing my clients.  I am concerned with bottom feeding practices that hurt our industry's reputation and waste a lot of people's time.

It is disappointing that a broker is expressing these opinions in a public forum. 

Jul 01, 2008 12:16 AM
Anonymous
Lois

I am proud to say that at our last ethics class the same question was asked and we all replied with the Golden Rule.  From what I hear our local board of Realtors has a reputation of being extremely cooperative with each other.  After all, the name of the game is to get the property SOLD.  So, one hand washes the other.

Jul 01, 2008 07:06 AM
#65
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

Lois - The way we do business is unique in the world of business.  First we compete for the listing, then we share information and try to help each other sell it.

Jul 01, 2008 02:10 PM
Anonymous
Leanna Watson Weichert Realtors-Watson & Associates

Hello, Iam knew to reading blogs but it sounds like some take what you said out of context.

i totaly agree with the golden rule concept.

 

Jul 07, 2008 08:15 AM
#67
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

Leanna - It is absolutely amazing.  When I write about ethics or professional behavior, I can guarantee to bring out a few who will opening tell the word they are unprofessional or unethical.

Jul 07, 2008 10:35 AM
Bob Cumiskey
A1 Connection Realty, Inc. - Sun City Center, FL
US Army Retired, Your Sun City Center, Florida ~ Realtor

Randy, Even as a child I couldn't lie.  I just knew if I stold something the cops would be waiting right outside the store for me.  So I don't do those things.  If something feels wrong (we all know that feeling in the pit of our stomach) to me, I just don't do it.  Great Post.

Jul 09, 2008 10:17 AM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

Bob - Apparently not everyone agrees with us.  I hope to not have to do business with them.

Jul 09, 2008 10:52 AM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

Erica - I like that one.  I will keep it in my memory banks.

Jul 10, 2008 04:16 AM
Greg Fox
Realty World Wichita - Wichita, KS
Techy Broker in Wichita Kansas

Great post (as usual for you!!) - Mahalo.  The only problem with the Golden Rule, some of the worst offenders are living by it.  They expect to get treated in the same way they treat people.

I find 2 things sad with all this:

1.  Our members are have to have COE training/testing every 4 years.  What a statement about our ethics

2.  My daughter missed 1 question on the state exam.  It was about what fine she would pay if she didn't renew her license in time.  Aren't their better questions to be asking new applicants?

Jul 12, 2008 07:49 AM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

Greg - I agree completely.  Our state exam focuses on who to pay, when to pay and when to renew your license too much.  They need to spend more energy on how to protect the public and how to sell a home.

Jul 12, 2008 03:39 PM
Anonymous
David

I have a pretty straight forward question.  Are emails between a realtor and client considered "confidential"? 

If I emailed my realtor some thoughts I had about a counteroffer, asked for her to contact me and advise me on concerns expressed in the email....and she in turn forwards that email to the other realtor without consulting me....  Is that breaking confidentiality?  

I would appreciate your feedback...

Jul 16, 2008 01:49 PM
#75
Shannon Jungmann
Allen Realtors - Lakewood, WA

Randy, Absolutely right on the golden rule. Its sad that so many realtors don't use the COE. I have my book and need to study. Seems like such a daunting task but I need to do it. Thanks for the reminder.

Jul 16, 2008 01:52 PM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

David - I would never do that without my clients authorization.

Shannon - If you use the Golden Rule you will find you have 95% of the COE more than covered.

Jul 16, 2008 02:08 PM