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Stop Poaching My Buyers - A Series on the NAR Code of Ethics (Part Six)

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Real Estate Agent with Keller Williams Elite RM423455

Stop Poaching My Buyers - A Series on the NAR Code of Ethics (Part Six)

How well do you know the NAR Code of Ethics? Let’s have some fun testing knowledge. Answers to the questions will come in future posts.

  1. Agent Jim has been showing properties to his friend Jerry. Jerry does not know if he wants to buy a home or not. Since Jerry is a friend, Agent Jim does not ask him to sign a Buyer Agency Agreement. Jerry calls Agent Jim one day, all excited because he has just purchased a home. Jim is shocked and asks what agent wrote the offer and why Jerry chose her. Agent Jane sold me the property. She is my neighbor and we began to talk one day. She asked if I wanted her help and asked me to sign a buyer agency agreement. I liked her and decided to use her services. Agent Jim is furious at Agent Jane and files an ethic complaint against Agent Jane. Is Agent Jane guilty of an ethics violation?
  2. Agent Jim and Agent Jane are both interviewed by Seller Sally. Seller Sally is selling her home at 123 Anywhere Street. She chooses Agent Jim to list her home. Agent Jane is frustrated she lost the listing and decides to call Seller Sally to ask her if she can represent her in the purchase of her next home. She explains her services and Seller Sally decides to use the services of Agent Jane in the purchase of her next home. When Agent Jim asks Seller Sally about seeing some homes she might like to purchase, Sally tells him she will be using the services of Agent Jane. Is Agent Jane guilty of an ethics violation?
  3. Agent Mark and agent Millie do not like each other. They have often competed for the same business. Agent Millie has a listing which has languished and remains unsold. Agent Mark runs into Millie at the coffee shop and asks about the property. He then proceeds to ask for details regarding the contract she has with the seller. Millie tells Mark to mind his own business and she will not tell him the terms of the contract. Mark returns to his office and calls the seller to ask about the contract this seller has with Millie. She explains the listing will expire in another month. Mark discusses his services and Millie agrees to list her property with him when the current listing contract expires. Has Agent Mark committed an ethics violation?
  4. When Agent Millie discovers what Agent Mark has done, she is convinced he has violated the NAR Code of Ethics. She is also furious. A prolific blogger, Millie proceeds to write a lengthy post about the sad state of affairs in the real estate industry. She posts about Mark’s behavior and says she will report him to her local board. Fellow real estate agents from around the country chime in about all the “bad apples” in the real estate industry. They all agree Agent Mark is a an unethical slob. Has Agent Millie violated the Code of Ethics?
  5. Agent Mark has done business with Investor Ian for years. In fact Ian has accounted for 20% of Mark’s business over the past 5 years. Through church and social settings, Millie learns to know Ian. Because of their mutual interest in real estate, they often talk about real estate. Ian decides to use Millie in his next real estate transaction. When Mark discovers that Millie has sold Ian an investment property he is upset. He believes that Ian is his client. Has Millie violated the Code of Ethics?


I look forward to discussing each of these situations in greater length in future posts.

 

Stop Poaching My Buyers - A Series on the NAR Code of Ethics (Part One)

 

Stop Poaching my Buyers - A Series on the NAR Code of Ethics (Part Two)

 

Stop Poaching My Buyers - A Series on the NAR Code of Ethics (Part Three)

 

Stop Poaching My Buyers - A Series on the NAR Code of Ethics (Part Four)

 

Stop Poaching my Buyers - A Series on the NAR Code of Ethics (Part Five)

 

Posted by

 

 

Living in Lancaster Group

 

An agent who places your interests as his first priority. 
Cal Yoder

Your Homes for Sale in Lancaster Agent

Keller Williams Realty Lancaster

1630 Manheim Pike

Lancaster, PA 17601

Office Phone: 717-735-1145

Cell Phone: 717-413-0744

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Lisa S. Mullins
Glen Allen, VA

Very good topic!   I have a question for you- does the broker own the referral  or the agent?    I did some referrals and  the  company  has the the referral now but a different agent did the listing ( not the one I sent  the referral to).  Tell me what you think.  Thanks~!

Apr 04, 2012 09:00 PM
James Dray
Fathom Realty - Bentonville, AR

Morning Cal as Lisa said very goo topic and I'm interested in your take on the question she asked.  Me I think the broker owns the referral since all transactions for real estate needs to go through the company what do you think? 

Apr 04, 2012 09:32 PM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Lisa and James, How did you do on the quiz?

As far as Lisa's comments, I will be truthful. I have no idea. If I had to decide with complete ignorance, I would doubt if anyone owns the lead. The broker has the contract for the listing. How did another agent take over the lead? Lisa have you had any discussions with the broker on what happened and if your referral is being honored. I have a whole lot more questions than I do answers.

Cal

Apr 04, 2012 09:57 PM
Daniel J. Brudnok, REALTOR
Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038 - Downingtown, PA
SRES, e-PRO,ABR,GREEN,CSP

Cal,

Very thought provoking.....and all 5 samples I am sure have and will continue to happen, unfortunately.

In my opinion, every transaction is an individual transaction and needs to have an Agent / Client relationship established in order for it to be in force, therefore #5 is open

In your #3 & #4, my understanding is......Agent Mike cannot approach a listed Seller, however if the listed Seller approaches an Agent not representing her the Agent Mike can discuss the topic.

Agent Millie cannot talk "badly" about another Agent by name......so both are in hot water.

What I find most interesting is that unless either Agent is willing to make a case the poor habits will continue and that is the reason why it exists.

Apr 04, 2012 10:07 PM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Dan, thanks for your thoughts. I will talk about some of the intricacies of each. Looking forward to it and hope you come back.

Cal

Apr 04, 2012 10:10 PM
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Not my area of expertise my friend, but here to support you.  ;~)

Apr 04, 2012 10:34 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
Cal great set of questions. I'm amazed at the number of agents who file ethics complaints out of frustration without understanding the basics of the COE.
Apr 05, 2012 03:35 AM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Thanks Roger! You are one great guy!

Cindy, my amazement has been part of the inspiration of this series. But as alway, it has helped me learn a  lot. Thanks for reading!

Cal

Apr 05, 2012 10:45 AM
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

1.  No

2.  No

3.  No

4. Yes

5.  No

 

Eve in Orlando

Apr 06, 2012 05:10 AM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Eve, thanks for taking the quiz. Stay tuned for my responses and you should feel free to give me your feedback whether you agree with my thoughts.

Cal

Apr 06, 2012 06:34 AM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Cal,

1, 2 NO 3, YES 4 YES 5 NO

It is unethical to 'go behind the sign' and contact a Seller during the listing period.

It is also unethical to slander another professional in public.

Sharon

Apr 07, 2012 01:09 PM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Sharon, glad to have you weighing in. I look forward to further discussion on these. I think this is kind of fun!

Cal

Apr 07, 2012 07:03 PM