Realtor Lawsuits - The Other Side of the Coin...

Reblogger Brett Pehrson
Mortgage and Lending with Advanced Funding Home Mortgage, NMLS#13287 NMLS#272088

"The Other Side of the Coin" offers an interesting point!

Original content by Tori Stamps

I just read a featured blog by Walter Hayes called "Realtor Lawsuits" and have to say I was shocked by the comments. 

Walter's blog stated he's heard "homeowners who have lost their homes to foreclosure are coming after agents and suing because their home didn't sell and ended up being foreclosed on."

The vast amount of comments basically said "What?!?  Those scummy lawyers?"  Instead of looking at the possible validity of the argument, these agents are tossing blame to the attorneys.

I object!

I object!

 

The truth of the matter is that too many agents are practicing outside of their area of expertise!  Agents who have never been trained, and have no experience in what it takes to get a short sale to the table are taking these listings (because they need the commission) instead of referring them to agents who know what they are doing.  They list the property like any other and hope for the best (instead of contacting the bank on a daily (or more) basis working through the issues.)

I understand the desperation of agents out there right now.  Times are tough.  Really tough!  But, taking a listing outside of your level of experience and scope of normal practice, is not going to help.  Not only are you setting up your client to LOSE THEIR HOME (that should be bad enough!), but you are also setting yourself for a lawsuit!

AND - YOU WILL LOSE! 

Short sales are a VERY labor intensive listing that require a VERY experienced agent.  While I'm an SFR (BFD, I took a class), I still bring in an agent who has A LOT more experience in short sales (from a different company, no less) because that's what my clients NEED!  The Code of Ethics is VERY specific here - and it's not hard to understand!

Article 11
...
REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service...

If you are taking short-sale listings, you'd better darn well know what you are doing!  If you don't have the necessary training or experience, don't just assume you can handle it.  You have a FIDUCIARY OBLIGATION to your clients to either bring someone in who knows what they are doing or refer them out to someone who does. 

Sometimes acting responsibly means you don't get a commission.  And THAT'S O.K.  That's what Fiduciary obligation means!  To put your clients well being above your own! 

From Wikipedia.org...

"A fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence." 

A fiduciary duty is the highest standard of at either equity or law. A fiduciary (abbreviation fid) is expected to be extremely loyal to the person to whom he owes the duty (the "principal"): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents.

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Do you need a new Broker?

If so, click here!
 

Tori Stamps, MA, JD

Stamps Realty

www.Stamps-Realty.com
www.LeipersForkRealEstate.com

615-512-5485 (cell)
615-595-1311 (office)
615-595-1312 (fax)
toristamps@comcast.net

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Info about the author:

Tori Stamps, MA, JD is a Franklin TN REALTOR® providing impecible service and attention to detail when you are looking to purchase and/or sell real estate in Williamson County, TN - including Leipers Fork, Franklin, Brentwood, Thompsons Station, Spring Hill and all other surrounding communities.  Please visit me at www.Stamps-Realty.com or  www.LeipersForkRealEstate.com for all your real estate needs.

If you're on the fence about buying a home in Franklin TN or its surrounding Williamson County TN communities, now is the time to buy.  Today's market is providing some great deals!  Now is the time to take advantage of the economy while interest rates remain at an all time low.  For more information on homes, estates and farms in and around Franklin, TN and its surrounding communities, you can search the MLS free of obligation at http://www.leipersforkrealestate.com/search-mls.asp.

Tori Stamps, MA, JD - Broker/Owner - Stamps Realty, Inc. - 615.512.5485 cell

Copyright © 2009 By Tori Stamps, MA, JD.  All Rights Reserved

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Rainmaker
154,094
Kathy Opatka
RE/MAX CROSSROADS - Ocean City, MD
Serving Ocean City, MD, & The Delaware Beaches

Brett,

We,too, have a bunch of agents running around saying they are "experts" on short sales because of a class they took! I agree with you....BFD!!!!!!!!!!!!

Apr 11, 2010 05:20 AM #1
Rainmaker
621,734
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise - Nampa, ID

Oh this is a pet peeve of mine...I wrote a post on it last month as well!  So many shouldn't be doing short sales...I recently had one of my buyers offers be approved by the bank....I think that the agent who is only part time was a huge partof the delay....we had been in contract since December....and had been actively looking for other properties...e.ven when it was approved...according to the fax the agent sent me....she waited more than 24 hours before sending it on to us!!!    Refer it if you don't have the skills or time....or as I do...I co list it...I do the marketing and he does the short sale portion of it!  That works for us!

Apr 11, 2010 06:26 AM #2
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