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Tuesday Truths....Real Estate Agents aren't God or Lawyers

By Kathy McGraw

Real Estate Broker/Owner with CELLing Realty CalBRE #01445865

March 11, 2008 04:01 PM

Tuesday Truths.... So many different personalities, so many different cultures, religions, lifestyles........all sorts of experiences that make up who we are as Real Estate Agents. Everything I would say except we aren't GOD.....but amazing that some of us act like we were.

Heaven

I remember a book I read many years ago called the Uguly American. What I remember about the book was how Americans Overseas act like they're better than others, with that arrogant attitude of "hey I'm an American." That's pretty much all I remember about the book, but today I was thinking how some Real Estate Agents act like this ~ arrogant and all knowing, with what I call the "I'm God" behavior.

I think every State has some type of criteria for becoming a Real Estate Agent. I know I worked very hard to learn the field of Real Estate. Taking classes, studying, memorizing, and then passing the State Exams (in CA) will give you the right to be a Real Estate Agent. Then you learn how to do the job :)

Real Estate Agent or REALTOR ®....but not a lawyer, and certainly not God!!!!! I just don't get it....why some people think that this license gives them the privelidge, or right, to go around giving legal advice, a big no-no.or acting like this license somehow gave them instant status of being a know it all. Just today I had an Agent call me twice......and neither time should he have been on my phone. I doubt his Broker would be happy knowing that he was giving legal advice, and then calling me, a Broker, with his understanding of the law.....and his interpretation of a transaction he had no part of. Then to threaten the other party was too much.

I doubt that when this errant Agent called me he even gave any consideration to his behavior. Did he think before deciding to make not one, but a total of 3 Phone Calls, all spouting legal advice he gave to his friend. And if he is doing this to a Broker, what is he doing with the Public? We are not allowed to give legal advice (in CA) unless we are also an Attorney....Period. It doesn't matter if you are just trying to help a friend or not, you could end up losing your license......

**At first I wanted to know if you thought he violated the code of ethics, but 2 people said there isn't enough info. So I will just say that too many Agents act like they know everything, and get involved with things they shouldn't.

By: Kathy McGraw - CELLing Realty

DISCLAIMER: Neither myself nor CELLing Realty are responsible for the accuracy or content from anyone other than myself.The opinions expressed in my Blog by The Activerain Network and it's members and anyone providing comments are theirs alone, and do not reflect the opinions of Kathy McGraw and/or CELLing Realty.

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Monika McGillicuddy

Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH

Southern NH & the Seacoast Area

Agents giving legal advice is not allowed in NH and is against the code of ethics. Article 11 competence..outside your field of expertise...

Some people never learn.

Mar 12, 2008 01:43 PM

Audrey June-Forshey

RE/MAX Realty Services - Darnestown, MD

GRI, Gaithersburg, MD

Kathy, Sometimes I think there is a fine line when going over a contract with clients. I know everything is written out by Lawyers, but I go over it with clients so they know the basics of what the contract paragraph says - but I am not advising them, just going over the pre- written contract. Sometimes it makes me worry and break out in hives!! Just tryin' to keep my nose clean.

Mar 12, 2008 01:45 PM

Eric Webster

Five Star Real Estate - Grand Rapids, MI

Grand Rapids, MI, Five Star Realty

Kathy, Good post. I try to remember each morning to say: "Please God, don't let me be the problem today".

Mar 12, 2008 02:19 PM

Kathy McGraw

CELLing Realty - White Water, CA

Riverside County CA Real Estate

Monika- I have told people to be very careful with that particular Article (11). I have seen so many that want to be everything to everybody.....maybe some people really do know all the aspects of Real Estate, but the majority of us have certain areas we're better at, and we need to be careful of overstepping our limitations. I have seen people here in CA lose their license for representing clients in purchases in areas beyond their expertise (commercial).......This is a Code of Ethics Violation as you said.

Audrey-in CA we absolutely go over the contracts with our clients, explain what it means, etc. I had a client that I did everything to try to protect them from themselves. Finally I called our E & O Attorney, as I just knew this was a law suit waiting to happen as the client wouldn't do their due diligence. Anyway, the Attorney told me what to write to protect myself, and still try to help the client. It worked like a charm.....so I think the attorneys are an excellent asset for us as well as for the public.

Eric- I like that....please God don't let me be a problem today.....that's pretty profound :)

Mar 12, 2008 02:41 PM

Anonymous

Lise McCleerey, TL Keller Williams Realty Bellevue, WA

Kathy,

I completely agree that we are not lawyers of any type. But we are responsible for knowing our forms. When we give them to our clients I really believe that we should be using the language as follows:

It's MY understanding that _________ But please check with a lawyer if you're concerned.

In the past, i've seen this working this way again and again.

I know a past client of mine experienced these issues like this...

Talking about our experience isn't a bad choice-- but make sure to throw in the disclaimer to have them seek professional opinions from people that specialize in that field.

Putting that "Please see an attorney" in writing is almost a MUST with our litigious society. :)

Thanks for a great thought-provoking post!

Mar 12, 2008 03:50 PM

#28

Gary Woltal

Keller Williams Realty - Flower Mound, TX

Assoc. Broker Realtor SFR Dallas Ft. Worth

REALTORS, Kathy, that think they are lawyers, remind me of poor drivers that need to re-take Drivers Ed. Why do you think there are blanks on the contract? To fill them in. You are not creating the contract. I think you should have firmly reminded that agent of Real Estate Principles 101. Maybe he has been in the business too long, and like you said, thinks he knows everything.

Mar 12, 2008 04:11 PM

Kathy McGraw

CELLing Realty - White Water, CA

Riverside County CA Real Estate

Lise-See my comment to Audrey....I agree we need to know our contracts....that's our JOB, our responsibility, our duty.......and we do need to explain them to our clients. I helped a client fill out the forms to report another Agent's incompetence prevented my client from getting his large deposit back after cancelling an escrow. It was violation of several of the code of ethics, including Article 11......and this Agent lost his license for everything he did wrong.

Gary-Now that's an idea....send them back to class :) :) I like that, not that I believe for one minute that it will help some people.....but hey I have a Pollyanna Belief System that everyone can be good LOL :)

Mar 12, 2008 04:14 PM

Tina Farinas

Fusion Real Estate Network, Inc. - Roseville, CA

REALTOR, ABR, GRI, SFR, CHS, e-PRO

Good post Kathy! I have bumped elbows with Realtors that this they are above everything and give legal advise as if they passed the bar exam ~

Mar 12, 2008 05:19 PM

Lorraine or Loretta Kratz

Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA

Certified Negotiation Consultants

Kathy;

I don't understand the attitudes of many agents. I will say this, if you challenge any of these individuals, you will be surprise how bombastic they become.

Mar 13, 2008 04:47 AM

Mara Hawks

First Realty Auburn - Auburn, AL

Inactive-2012 REALTOR - Homes for Sale Auburn Real Estate, AL

Doesn't a lawyer have to study for like 7 or 8 years? And then pass an intensive (and often failed a few times) State Bar exam?? I think getting a license to sell real estate is a step above a fishing license (which doesn't even make you a fisherwoman or man). It's, as you so subtly but most importantly remind us: "then you learn how to do the job"... I think of it as not really 'something' in itself, but rather a VEHICLE of sorts... giving me the opportunity to transport information and facilitate arrivals --- sometimes to the closing table, but sometimes, it's just to arrive on someone's path to simply bless the journeying.

Mar 14, 2008 02:48 PM

Kathy McGraw

CELLing Realty - White Water, CA

Riverside County CA Real Estate

Tina- I think we all have met some of these people. They aren't doing themselves, or their clients any favors....but they don't see it that way. Oh well, we can only be responsible for ourselves, and not tolerate it when it comes to our own business.

Lorraine- True.....and as sad as it sounds some people just don't know any better....some don't care, and some care and do it anyway......we are a varied group for sure.

Mara- CA recently changed the law that you now have to take 3 courses before you can take the Salesperson Exam.....I have a Brokers License, and it was 7 difficult courses, and a very difficult exam. I agree that the license is a vehicle in the sense that without it you can't do the job......but after that there is so much more to learn. So much of the business is about people and common sense. Those things you cannot learn......we learn contracts and related things, but if someone thinks they "know everything" or they care more about their pay than the client....that's when problems occur.

Mar 14, 2008 03:19 PM

Ann Heitland

Retired from RE/MAX Peak Properties - Flagstaff, AZ

Retired from Flagstaff Real Estate Sales

So right, Kathy. And another beautiful picture!

Mar 14, 2008 03:22 PM

Kathy McGraw

CELLing Realty - White Water, CA

Riverside County CA Real Estate

Ann- Thank you......and that picture is from Maui, with the smoke from buring the sugar fields in the background.....:) Hope all is well with you and yours.

Mar 14, 2008 03:44 PM

Diane Aurit

LKN Realty, LLC - Mooresville, NC

Lake Norman Real Estate

Kathy, both in CA and NC it is pounded in our classes that we are never to give tax or legal advice...down to title questions etc. It's not just the state training, it comes from your office trainers/brokers as well. This is such a huge liability for Brokers...one of the reasons why NC now requires all licensees to be brokers!

Mar 15, 2008 01:40 AM

Midori Miller

Talk 2 Midori, LLC - Daytona Beach, FL

Online Marketing For Real Estate Professionals

Kathy-yes, I see it happen every day...and really often times its just the misuse of words. In our state we work as transaction broker's but then you hear these agents giving advice and opinion and really impling they are single agents...Truthfully same thing goes with law...give legal advice...give tax advice...some court systems may in fact find you guilty based on your mere implications...not worth it is it? but yet so many do so.

Mar 16, 2008 08:54 AM

Kathy McGraw

CELLing Realty - White Water, CA

Riverside County CA Real Estate

Midori-What's a Transaction Broker? And what's a single Agent.....you're right, see I don't even know what these words mean in relation to your State, and the context of what are your rules :)

Mar 16, 2008 10:25 AM

Jo-Anne Smith

Oakville, ON

Kathy,

I agree completely. Here in Ontario we have a strict CODE (code of ethics) that is actually part of our Real Estate and Business Brokers Act and it is mandatory that we refer a client to a lawyer or other expert in whatever field the question/issue crops up in.

If we play 'God', we could be heavily fined, or worse, lose our license.

Mar 16, 2008 11:54 AM

Celeste "SALLY" Cheeseman

Liberty Homes - Mililani, HI

(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

I think no matter where we are...there is big liability in giving, pretending to give legal advice. I love my license. I'll stick to real estate...and when in doubt...ask!

Mar 16, 2008 12:07 PM

Kathy McGraw

CELLing Realty - White Water, CA

Riverside County CA Real Estate

Jo-So some of the rules are the same.....we have the same rule about referring them, and losing our licenses for violating the rules.......and heck the fine can be quite heavy for some of the violations, uyet people continue to do it. Just amazes me :)

Sally-Absolutely "when in doubt...ask". In Hawaii do your dues allow you to call your State Real Estate Legal Hotline? In CA we can call an attorney and ask......so why in the world would someone risk their license when all they have to do is either make a call themselves for clarification, and/or send someone to their own attorney?

Mar 16, 2008 12:31 PM

M. Suzi Woods (Gravenstuk)

NOW Sharing the life and spice of the GC one day at a time - Grand Canyon, AZ

Suzi Woods, Prior Independent REBroker in MS

Kathy, MAR has a legal hotline. The "firm" tends to caution us not to practice law even when we are calling them for advice about something that could be construed as practicing law.

Mar 16, 2008 05:09 PM