The 1966 U.S. Supreme Court ruled that police had to inform suspects of their "Maranda Rights" before interrogating them.  Those rights begin with "You have the right to remain silent. If you give up that right, anything you say can and will be used against you in a court of law. . . ."   As we look back on this ruling, it only seems fair in light of the Fifth Amendment which is designed to protect citizens against self-incrimination.

            Most states also have similar "Maranda" statutes, titled Agency Disclosure, that are designed to protect the public's best interests when talking to a real estate agent.  In South Carolina those statues require that every licensed agent must do two things before any substantive conversation with the general public takes place about buying or selling real estate:  1) The agent must first clearly identify himself as a licensed real estate agent, and 2) He must then provide a copy of and discuss the Agency Disclosure Brochure. 

            Now this is a very important issue for FSBOs.  As soon as they put a For Sale By Owner sign in their front yard, real estate agents will begin calling or dropping by.  All too often the FSBO isn't told by them about his "Maranda Rights" -- You have the right to remain silent. If you give up that right, anything you say can and will be used against you in negotiations to buy your home!  You see, confidentiality, or the lack thereof, is one of the core issues of Agency Disclosure.  That's why the public as a whole, but FSBOs in particular, must be informed upfront that as an unrepresented seller, what they tell a real estate agent about themselves, their home or their motives for selling isn't protected by confidentiality.  Knowledge gained from such conversations can, and most likely will, be used by an agent against the seller if he finds a buyer for the house.

            So, for whatever it's worth, here's my advice to FSBOs.  First, don't even sit down to talk about your home with an agent if they do not provide you a copy of and discuss with you the Agency Disclosure Brochure.  They are breaking the law!  Secondly, if they discuss the brochure but do not emphasize the issue of confidentiality, politely show them the door.  They don't have your best interests at heart.  Thirdly, be careful about answering questions like "How long has your home been on the market?  Have you had any offers yet?  Are you willing to negotiate the price?  Why are you selling?  When do you want to move? "  These questions are designed to reveal the level of your willingness to negotiate.  Fourthly, don't ever forget FSBOs have Maranda Rights too!

You have the right to remain silent. If you give up that right, anything you say can and will be used against you in negotiations to buy your home!

www.RBMoore.com        mailto:Ron.RBMoore.com