On November 29th the Lubbock Association of Realtors were fortunate to have Della Lindquist speak at our monthly luncheon regarding complaints received at the Texas Real Estate Commission. Ms. Lindquist is the Director of Enforcement for the Texas Real Estate Commission with a team of eight attorneys and another eleven field officers working throughout the state. Though she acknowledged the investigation process is slow she also explained that the goal is to be thorough. Approximately 400 complaints to TREC are made to her department each month and are divided evenly as internal issues, licensing issues and the remainder being consumer complaints.
The majority of consumer issues come from a misunderstanding of agency. Though agency laws have been in place in Texas for several years, representation continues to be misunderstood. Ms. Lindquist reiterated that although the Information About Brokerage Services (IBS) form does not actually have to be signed, it must be presented upon the first substantial meeting between an agent and the prospect.
Some of the most vulnerable aspects that she emphasized were as follows:
- When acting as an intermediary--STOP SELLING! Though it is an agents nature, when a prospect brings up an objection, fore-go giving advice. In an intermediary capacity, legally we must stop giving our opinions in order to be fair to both parties
- Don't use language such as "my buyer, my seller, or the seller's and I..."
- When an agent has entered into a listing agreement and later decides to purchase the property for their own purpose, the agent should council with their broker and end the listing agreement.
- Be careful not to confuse sub-agency with intermediary.
- Be careful with disclosure issues. Remember that a defect will include any material effect that may preclude a buyer from the purchase of a property.
- When the date of the IBS is close to the date of the contract, red flags go up in the TREC legal department.
When questioned, Ms. Lindquist explained that it is not the job of the listing agent to determine proximity of registered sex offenders and restated that it is against the law to disclose any matters regarding HIV.
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