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Code of Ethics? Yeah, RIGHT!

By
Real Estate Agent with theJEMgroup.com (DRE #01373117)

Last week a friend of mine, Earl Sorrells, posted the NAR's Code of Ethics for all to see and made the comment "Real Estate agents don't necessarily live by this, but Realtors do." 

Maybe I'm jaded.   Maybe I'm the only one that's been screwed by a REALTOR.  Yeah, right.  I've been a REALTOR for 4 years and a service / contracting company owner for 15 years.  I've dealt with all kinds of people and I've got to say that I haven't run into a more back-stabbing, client-stealing, unethical, immoral group of "professionals" than I have in the real estate business.  In my experience, mortgage brokers are ahead of REALTORS in this regard, but not by much.

The NAR makes a big deal out of how REALTORS are so much better than your typical licensee because we have to live by the COE.  Okay, we signed the paper and paid our fee, so I guess that miracles away all the idiots out there that will do and say anything to make a sale, right?  Guess again!

 

Here's a story about one of these COE-abiding REALTORS ...

I don't work with buyers very much.  I don't have the patience.  If you know what you want and you want it now I'm happy to help.  Otherwise, talk to my wife ... she loves showing homes and smiling all day ... this is why I got her licensed.  I'll work with military relocations who need a home now or investors who work by the numbers.  The latter is my client in this situation.

I had a client call me off of my website who was interested in purchasing a particular property.  It just so happened that this property was a short sale situation and was listed with another agent in my office.  An agent that is your typical used-car-salesman type.  From the moment I met him I didn't trust him.  I'm a fairly good judge of character.

My prospective client liked what I told him about the property.  He came up the next day to see it.  On his way up he called me and asked who he should have the cashier's check made out to for the earnest money and asked me to write the contract up for a price we agreed was fair.  I like this guy already.

After seeing it, he liked what he saw ... he followed me back to my office and signed the offer.  I love clients like this ... I need 10 more. 

To make a long story even longer ... I submit the offer and was informed by Slimy that it was accepted by the seller and was off to the bank for approval which should come quickly since there was a prior offer submitted whose buyer had backed out so "the ball was already rolling."  He figures it'll go through within two weeks.  Right. I tell my client to expect a timeframe of 60 days at least before we hear anything from the bank.

Two weeks later I get a call from Slimy ... "The bank has accepted your offer and we need to send the deposit to escrow!"  Wow, that was quick ... I called my client and let him know.  He was shocked too.  I sent the money to escrow and proceeded to do what needed to be done.  Mistake.  I forgot about my instincts about Slimy.

A few days later I came to find out that the bank hasn't even assigned the file to a loss mitigator.  I also find out that the 2nd trustee hasn't even been talked to.  Per the contract the earnest money was not to be released without the bank's approval of the short sale.  I've been put in the position of appearing that I've lied to my client.  Slimy says he never told me it was approved.  I'm pissed.

I call my client and explain the situation and he, luckily, is okay with it and is willing to continue waiting.  Now why would Slimy go and stir the pot?  Everything was fine.  No one was in a hurry.  What good does it do to piss off a co-worker?  If he's doing stuff like this to me, what is he doing to agents in other offices?  What is he doing to his clients?  Why did I go against my gut and take his word in the first place?  If I can't trust someone in my own office, who can I trust?

 

I was raised to believe that a man's word is his bond.  I've done many deals in my contracting business with nothing more than a handshake.  There is nothing more important to me than having someone know that they can trust me to do what I say.  I never signed a Code of Ethics before becoming a REALTOR.  I've always lived by my own ... The Golden Rule!  I also expect anyone I deal with to do the same.

It's a sad world we live in when we can't trust what we're told.  A piece of paper doesn't mean a damn thing.  If someone isn't ethical to begin with, signing something that says that he is isn't worth the paper it's printed on.

As I said in my response to Earl's blog post ... It would be REALLY nice if all the REALTORS that signed to abide by the COE would actually do it.  Really read the COE.  This is all common sense stuff.  I don't need to pay any fees to any association to live by the principles set forth in the COE ... As an honest and upright human being I do it as a matter of principle.

What the NAR should do is make it harder to be a REALTOR than paying a fee and signing a contract many in our profession never intend on following.

The COE is a lovely piece of paper.  Everyone should know this stuff, and the public should hold their REALTOR's feet to the fire if they find the REALTOR to be doing things they shouldn't.

 

Fellow REALTORS, please read the COE and make a list of the things you need to stop doing immediately!

 

- James 

Posted by

 


James Malanowski, REALTOR, e-PRO - Bank-Owned / REO / Foreclosure Specialist in Palmdale, CAJames Malanowski is broker / owner (DRE #01373117) of J. Malanowski Real Estate Services in Palmdale, CA.  Specializing in the listing and sale of bank-owned / REO / foreclosure homes in the Palmdale, Lancaster, and Rosamond areas of the Antelope Valley (located in Northern Los Angeles County and Southern Kern County). 

James' brokerage also handles the listing and sale of other types of distressed property such as Short-sales, bankruptcy sales, probate / estate sales and divorce sales. They also provide end-to-end investor services including property management.

To reach James directly for more information please call (661) 285-5975 x101 or toll-free at (866) 217-9707 x101.  James can also be reached via e-mail at James@theJEMgroup.com

You can also view James' primary web site at theJEMgroup.com

Comments(11)

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Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

You aren't the first one to have a complaint about this character.

What does your Broker say?

Jun 18, 2007 10:40 PM
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Specialist - Agent
There are rotten apples in every barrel of every profession of life.  What does your broker say?  Has this agent been reported before?  
Jun 18, 2007 11:06 PM
James Quarello
JRV Home Inspection Services, LLC - Wallingford, CT
Connecticut Home Inspector

Interesting story, you wonder why home inspectors have a bad opinion of Realtors. And yes there are our share of Slimeys in our profession. Slimey, that's great! LOL

Jun 18, 2007 11:07 PM
Todd Murphy
Fitts Agency - Tuscaloosa, AL

I agree with Chris, there's always a few bad apples in the bunch.

Jun 18, 2007 11:51 PM
Laurie Mindnich
Centennial, CO
James and Ely- your frustration is shared by a Realtor that, on a nearly weekly basis, deals with "professionals" that are greedy, unprofessional, and belong in a car lot, not real estate.  Your point is well taken- don't put up with it.  Contact the real estate commission, because at the very least, you'll force this person into a dragged out hassle of responses for their actions, and possible punishment.  It's worth the effort.  Also, document every transaction- this is very helpful.
Jun 18, 2007 11:56 PM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
James, too bad that a few in every locality give all of us a bad name. Yep, I would talk to the broker on this one.
Jun 19, 2007 12:02 AM
Paul Moye
Benchmark Realty - Franklin, TN
Broker, GRI, SRES

You know this is easy to resolve. If what you state in your BLOG is true then file a COE complaint with the Association of REALTORS. People have ethics or theydon't and every year as a member of our local Association's Professional Standards Committee I see at least 1 member suspeneded, 2-3 sanctioned and another 4 fined and given additional CE.  For the most part the majority of these people will never make it in the business in the long term because they are guilty of far worse offenses that never get filed as complaints.

Also remember that NAR and the local associations and their professional standards committee are civil law bound and have no criminal / legal authority. If there is criminal misconduct the Association can not do anything more than uphold the COE. Your state real estate commission has the authority to strip licenses and impose fines of substance 

Jun 19, 2007 12:09 AM
James Malanowski
theJEMgroup.com (DRE #01373117) - Palmdale, CA
REO Broker, Palmdale, Lancaster, Rosamond, CA

Thanks to all who commented.  Those of you who are focused on the example I submitted, please don't.  Because it was in-house, the particular situation was taken care of swiftly.

The overall message is what I want to pass on, not the particular story.  This was only one of many issues I've had to deal with in my real estate career and I'm sure there will be many more to come.  The point is, if we all would remember the golden rule we would all be in a better situation ... and just because an agent is a REALTOR doesn't mean that he/she follows the Code of Ethics.

 

- James

Jun 19, 2007 08:26 AM
"The Lovely Wife" The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

James...

It may also help if they read this...

<The Ten Commandments Of Real Estate>

TLW...ROAR!

Jun 20, 2007 11:22 PM
James Malanowski
theJEMgroup.com (DRE #01373117) - Palmdale, CA
REO Broker, Palmdale, Lancaster, Rosamond, CA

I like that ... Thanks for sharing!

 

- James 

Jun 21, 2007 07:01 PM
Joshua Espiritu
Real Estate America - Elk Grove, CA

I'm pretty sure there are people around my area who are using the REALTOR® designation and they aren't even members, let alone know what the COE is.

But as said earlier, there will always be bad apples in the bunch, unfortunately. Glad to hear it was dealt with though.

Jun 22, 2007 08:43 AM