As a REALTOR® my primary job is to protect my client's interest. It is not to practice law, give tax advice our give engineering opinions. I am licensed to sell homes; I am not a Lawyer, a CPA, a Contractor or an Engineer of any type. I can loose my license for practicing law and giving professional advice for something other than what I am licensed to do.
This is the hardest thing for many agents to remember. I constantly hear agents make comments like this home has settling issues or you can knock out that wall and move it there. I cringe when I hear agents make comments like that. I have even heard them giving tax advice or legal advice.
Last week I showed a home that appeared to have possible settling issues. Let me repeat the important part of that sentence: possible. I saw cracking in walls and ceilings and windows that were out of square. I also saw deck and stair cases pulling away from the walls. If you asked me to make a bet, I would law a few bucks down on settling. What did I tell my clients? There may be a possible settling issue. (I also pointed to what I was looking at). I then stated if they wish to purchase this home they should have it inspected by the appropriate professional to determine if it is a problem and if so what the needed remedies are.
Our job is to point out red flags and point them to the appropriate type of professional to get it properly addressed, not to give advice on the problem. If a client has a tax issue or a potential tax issue, I recommend they speak to their tax professional. If they need legal advice, you guessed it I recommend they speak to an appropriate attorney. The big one, if they ask if they can knock out walls or make extensions, I recommend they get in touch with a licensed contractor to determine the feasibility and costs.
I know it is tempting for agents to give legal and tax advice, especially when they think they know the answer. After all we all want to be loved by our clients and we want to be helpful. I can only say one thing. Don't Do It!
If you truly want to be helpful, point out the red flags, document it and recommend they seek professional advice.
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Randy L. Prothero, REALTOR®, ABR, AHWD, CRS, e-PRO, GRI, SFR
Century 21 Liberty Homes
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.
Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) and the Leeward Regional Chairman of the Honolulu Board of Realtors. To improve overall professionalism in his area Randy also offers classes for real estate agents.
www.HawaiiRandy.com * Oahu (Honolulu County) Property Search * Hawaii Military Relocations
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Excellent post, Randy. I think too many people are uncomfortable with silence.... or perhaps they think by not giving an answer their professional reputation will somehow become slightly tarnished. Bottom line... if it's not your area of expertise... close thy lips.