Realtor's Ethical Landmines: Are we there yet? Part I
First thing first: Have we forgotten? The Golden Rule: "Whatsoever ye would that others should do to you, do ye even so to them,"
Second: A Need to Know: We need to know the Perils, and Pitfalls that can lead to the following:
1. Violations
2. Questionable and unlawful practices which can invite disciplinary actions by the DRE, possible civil and criminal liability and Ethical hearing.
Are we there yet?
Third: A Thought Provoking Question.
Is it possible to walk in these landmines and not know it or just plain be in denial?
As a Realtor, it seems as if we are experiencing an ethical crisis. I believe it may start with "Missing Manners" then move into ethical misconduct, which sometimes can end in ethical violations: Then, sometimes move into illegal and criminal violations.
As a result, I believe we should be on high alert and highly informed. Thus this is the purpose of my blog. A little lengthy I know, but hopeful it will be helpful, but more important push us "To do better."
Let me explain the landmine remark: Usually a landmine is not known until you passed over it: It is not easily recognized, unaware of, concealed or an unexpected obstacle can surface. Clearly, in order to "Do the right thing" it must start with being well trained and in compliance with NAR Code of Ethics: see:
http://www.realtor.org/mempolweb.nsf/pages/code. But, it does not stop there.
Let's look at some other reports and information encouraging us "To do better!" For example:
DRE Commissioner Jeff Davi has issued a warning to us about legal and ethical minefields and the growing fraud in Short Sales. We need to take heed: (see California Department of Real Estate: Real Estate Bulletin, Fall 2010: www.dre.ca.gov).
- DRE: Real Estate Bulletin: Fall 2010: Pg. 4: Disciplinary action: March 2010-May 2010: Full text of the section is available on the DRE website: www.dre.ca.gov under Real Estate Law and/or Regulations.
- California: DRE California, Real Estate Bulletin (California Department of Real Estate, www.dre.ca.gov Fall 2010: Statewide DRE Disciplinary actions involving not just Realtors, but Financial, Lending, Mortgage, and Investment companies:
(a) Los Angeles 151
(b) Fresno 18
© Oakland 36
(d) San Diego 21
(e) Sacramento 28
4. Beaty Reynolds writes: (beatyre@msn.com) is a freelance real estate writer and author: Common courtesies are another casualty of the times.
"Agents report that professional courtesies are as rare as no-doc loans:" By Beaty Reynolds reports:
"Is there room for manners in tough times, when foreclosed and REO properties are the norm? The line between etiquette and ethics, of course is a fine one. And when one agent's thoughtlessness impinges on another's livelihood, the line is even blurrier." Although this article zeros in on agents sacrificing their credibility in the process, lack of common courtesies, and lack of follow through:
California Real Estate, November/December 2010, (pg.22): Missing Manners: A Powerful Article: (www.car.org
My Bottom line assessment: I believe it is an ethical challenge involved here; manners are just a small part.
What do you think? Let me hear from you. Thanks, MC
Email:hollywoodhomesmc@aol.com
M. C. Griffin Campbell, DRE# Broker License #: 01819507
Coldwell Banker: www.hollywoodhomesbymcampbell.com
Part II. Realtor's Ethical Landmines: Are we there yet?
5.Realtor.org Reports: Agent Found Liable for Short Sale Fraud: The U.S. Bankruptcy Court for the District of Utah determined that a real estate agent and investment group misled a client in a short sale transaction. See http://www.realtor.org/rmolaw_and_ethics/In+Court/PastArticles/1009_incourt_shortsalefraud
6. Australia & New Zealand: News Report: ETHICAL CONCERNS in the Real Estate Industry: According to news report: http://www.jenman.com.au/Ethics_Concerns.php
"Real estate consumers are losing millions of dollars due to the lack of ethics in real estate. It is a national disgrace in both Australia & New Zealand. And it is time it stopped.
We believe that most consumers are NOT informed of the dangers involved with selling or buying real estate. Further, we believe that consumers are being deliberately and massively misinformed. Thousands of people are being deceived and misled, and until now, very little has been done to stop it. http://www.jenman.com.au/Ethics_Concerns.php Real Estate Report: SCANDAL:
The current lack of ethics in real estate is one of our greatest national scandals. It is hard for anyone who is not involved in the real estate industry to comprehend the magnitude of what goes on 'behind the scenes'. Thousands of consumers are being ripped-off. In these days of high consumer protection it is amazing that the ethical crisis in the real estate industry is scarcely mentioned
Los Angeles Times: Sunday, December 5, 2010 reports: How not to steal a real estate listing, Kiwi-style: A new Zealand agent is fined for blocking homeowners "for sale" sign with his own: Mary Umberger reports:
- " For Sale by..:A real estate agent is in trouble in New Zealand because he was apparently a little too eager to obtain a listing. The agent was recently fined the equivalent of about $1,100 by real estate licensing officials and ordered to attend an ethics course after a family in the town of Otaki, near Wellington, discovered that he had put his own "for sale" sign in their yard, directly in front of their "for sale by owner" sign. The agent who had been licensed for about two weeks when the alleged offense occurred, defended this action by saying he thought the homeowners had agreed to list it with him, though, admittedly they neglected to sign that important little piece of paper that makes a listing official, according to media reports. The homeowners, who lived in another city, told regulators they were puzzled when they stopped getting phone inquiries about the house, then they found the agent's sign in their yard."
It is not just in the Real Estate Industry: We see Ethical misconduct in other Professions who pledge to uphold a high ethical standard, but brought shame on their profession.
7.According to recent news report: August, 2010: Sex Scandal, Rialto California Police Department has suffered embarrassment following public allegations by female workers at local strip club who alleges they had sex with on duty cops which involve group sex. While the investigation is going forward, four officers were placed on paid administrative leave-another officer is no longer with the department because of these allegations. Investigation still ongoing.
8. December, 2010: LA Times reported: Orange County Sheriff deputy charged with sexual assault of a teenager while on duty.
9. Congressman Charlie Rangel: Former Chairman of Ways & Means Committee was charged with 11 of 13 Ethical violations: Yes, we need to know.
Count 1: Violating solicitation and gift ban: Soliciting donations and other things of value on behalf of the Rangel Center from persons or entities with business before him or his Ways and Means Committee.
- Count 2: Violating code of ethics for government service: Accepting benefits under circumstances that could be construed as influencing the performance of his governmental duties, with respect to soliciting donations and other things of value on behalf of the Charles B. Rangel Center for Public Policy at City College of New York.
- Counts 4 and 5, merged into one count: Violating postal service laws and franking commission regulations: Mr. Rangel was accused of using his franking privileges for the benefit of a charitable organization and for solicitation of funds.
- Count 6: Violating House Office Building Commission regulations. Mr. Rangel and his staff drafted solicitation letters on House property.
- Count 7: Violation of the Purpose Law and the Member's Congressional Handbook: Mr. Rangel used House employees and other official House resources for work related to the Rangel Center and used his Congress member's allowance to pay expenses related to the Rangel Center.
- Count 8: Violation of letterhead rule: Mr. Rangel sent letters related to the Rangel Center on House letterhead.
- Count 9: Violating Ethics in Government Act and House Rule 26: Mr. Rangel submitted incomplete and inaccurate financial disclosure statements, and failed to report or erroneously reported items he was required to disclose under the Ethics in Government Act from 1998 through 2008. In particular, Mr. Rangel amended certain financial disclosure statements only after a House committee began investigating his reporting of income from his Dominican villa.
- Count 10: Violating code of ethics for government service: Mr. Rangel leased a rent-stabilized apartment on Lenox Terrace in Harlem for residential use only, but was allowed by the landlord, a developer whom Mr. Rangel dealt with in his Congressional capacity, to use the apartment as office space for his campaign committee. The arrangement could be construed as influencing the performance of Mr. Rangel's official duties.
- Count 11: Violating the Code of Ethics for Government Service: Mr. Rangel violated the code by failing to report rental income on his Dominican villa.
- Count 12: Violating the letter and spirit of House Rules listed above.
- Count 13: Conduct reflecting discreditably on the House: Mr. Rangel's improper solicitations and acceptance of donations for the Rangel Center; his misuse of House staff, letterhead and franking privilege for the Rangel Center solicitations; his failure to file full financial disclosure statement; his failure to report the rental income on his Dominican villa; and his use of his rent-controlled residential apartment for his campaign office all brought discredit to the House. In the end, Rangel was charged with censure by the Ethics Committee.
Email:hollywoodhomesmc@aol.com
M. C. Griffin Campbell,DRE# Broker License #: 01819507
Coldwell Banker, www.hollywoodhomesbymcampbell.com
Part III. Realtor's Ethical Landmines: Are we there yet?
10.Corruption Scandal: City of Bell council members were paid six-figure paychecks as they serve on the council. These salaries were unusually high salaries. The former city manager and several current and former council members of Bell, Calif., have been charged with misappropriating public funds in connection with unusually high salaries the officials had collected during their terms. Los Angeles District Attorney Steve Cooley says the officials misappropriated more than $5.5 million, including paying themselves for phantom committee meetings and making illegal personal loans.
11. A Charity: Ethical Misconduct: September, 2010: Press Release: Attorney General Edmund G. Brown Jr. announced a settlement with a charity that "betrayed the trust of its donors" by using deceptive fundraising tactics and diverting thousands of dollars from care of burn victims to pay for meeting in resort communities.
Our Ethical Solutions are as follows: Some have been outlined (Code of Ethics, NAR, 2010). Now, comes the other part-putting it into practice:
Be committed to working hard to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession
- As Realtors we must always be on high alert knowing that the nation and its citizens require the highest and best conduct from us.
- Being Committed to Communicate and Cooperate with other Realtors
- Being committed to conduct our business in compliance with NAR (Code of Ethics): As a result, this would indicate competence, fairness and high integrity as a Professional.
5. We must dedicate ourselves to learning more about Ethical behavior through training and education.
6 .Be committed to Maintain and improve the standards of ethics and realize the common responsibility for its integrity and honor.
7. In an effort to remain informed on ethical issues affecting real estate and, as knowledgeable professionals, we must be willing to share the fruit of our experience and study with others.
What's your take on this important topic? Let me hear from you. Thanks, MC
Email:hollywoodhomesmc@aol.com
M. C. Griffin Campbell, DRE# Broker License #: 01819507
Coldwell Banker, www.hollywoodhomesbymcampbell.com
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