When is Enough, Enough? Ethics Concerns

It does sound like there are grounds for an ethics complaint. The out come would be less certain. On the flip side: A new agent, a short sale situation, a pending divorce, and a $400,000 price reduction! I dunno. Maybe this agent was in a little over his head. On balance, it's one of those learning experiences we all go through. He had no discussion on why they wanted to cancel. Maybe he was not feeling so great about this listing after all.

You have started a very good conversation here. Thanks.

Cami,

Just a note. These guidelines are NOT set out for our profession, better say they are not professional guidelines.

Professional guidelines are set by the State Law. If I remember it correctly, the State licenses you.

The guidelines you are talking about are set by NAR, which is a professional association. Why we tend to forget that being with the Association is a matter of choice (often forced, though) is not clear to me, but you clearly make an assumption that COE is a professional standard, while it is more a Union standard. And before proud Realtors start screaming, let me ask you - Where is the customer? The customer voted by terminating the agreement. What doyou want to do? Tell him that he is married to the agent they are not happy with?

Is that ethical?

You spent money on them, and you have it in the Listing agreement, so charge the Seller and learn a lesson.

When this happens to us, we do not charge. It is a cost of learning. Would't you feel ashamed to miss the mark by $400K?

We had a situation recently that was pretty unbelievable. It was a short sale and we represented the seller and another agent represented the buyer. It was a very long process and throughout the process this agent kept in contact with us on the premise of updating his buyer and representing the buyer. We later find out the agent is in fact a loan officer. So, we think, ok the agent has dual purposes here. The tenant in the home has been in contact with the buyer, is a Realtor, has been advising the buyer, and has not been paying rent as he's aware of the impending transaction. Finally, after months and months, the home finally closes. Then, the "agent" calls the buyer and tells them that he's not actually an agent at all - he's really only a lender. The buyer is a cash buyer and even though we're technically closed, says that they are unable to fund the transaction until they have representation - which was offered to the buyer. The buyer hires the tenant who's been in the seller's home not paying rent. If the seller wants to close and fund on the transaction now, the seller has to pay the non rent paying tenant a commission for being involved in the transaction for 45 minutes.

Trying to keep a long story short. So, after it was all complete, we talked to our legal advice team and they've advised us to gather all e-mails, notes made, conversation recaps, any kinds of documentation we have and they are going to take it to the governing body. That's a situation in which ethics were involved and what we're doing. I know part of it's more cut and dry in this case, but it's still an ethics situation.

My dad, whose a pretty smart guy, told me that you just want to leave documentation in people's files who are like this. It's like barnacles they carry around with them in their careers and everywhere they go, they have to explain their behavior.

Hope it helps. :)

Ben,

That agent does not understand the "golden rule"  and to me violated the ethics of real estate.

Ben,

There are some areas that tie MLS access to membership, and some that don't. There was a discussion a few months ago, and it was funny, that many agents were very surprised that it could be not tied (including me), like in your area, and many agents were very surprised that it is tied, like in other areas. Everyone assumed that their model is national, and it wasn't.

As to the similarities and differences between the Association and Union, I will not argue. I am not a guru.

This is not to defend the other agent, this is more an attempt to see the Seller's side. He sign something hoping that everything would be going as expected, and it did not. When things turn sour, people get unhappy, and they can try to change the course.

The overwhelming majority are very harsh to the Seller, even though they do not even think about the Seller.

Please, understand that the unhappy Seller would himself be going around and talking to people, and there will be friends and relatives, who would try to hook him with somebody, and ask their agent-friends to help, it is not easy.

But being harsh to the agent, we forget about the Seller. 

Ben...File an ethics comlaint. 

I serve and have been serving on a Grievance Committee in Virginia for several years.  We have the privilege and duty to police our profession.  Therefore we must do so when we see the Code being broken. 

As far as the Seller, it does not benefit them to deal with an unethical agent.  I do not want to deal with an unethical lawyer or doctor just because it might save me money.  If they are going to be unethical with someone else what would prevent them from being that way with me.  Perhaps Ron and Jon should consider that.

Interesting and important post.

Kathleen

File the complaint! There is a possibility that this person just had a business card that said she was a short sale expert and they called or e-mailed her. But, if she did do what happened, she needs to be fined so it doesn't happen again.

Ben ~ Most definitely report it as an ethics violation! She should not have been soliciting someeone else's listing.

Who knows, your local Board may even charge this unethical agent a FINE - which would get her attention. Money talks! Best wishes to your agent.

Ben, I agree with so many of the statements above:  namely -- if this person is not hit where it hurts most, their pocketbook and hopefully, embarrassment from being known as being unethical, then they will never learn nor will others learn from her mistakes.  To be labeled unethical just makes me cringe, I would hate to have something like that pinned on me and proven to be true, how would anyone trust me again?  I say file it, its worth the time and the Broker should get involved as well.  Great post and situation to bring to light.  Thanks for sharing.

Ben,

The majority seem to agree that an ethics complaint sould be filed.  However, remember that you must prove your case.  From the scenario you have given, the testimony from the seller would appear to be paramount for you to prevail.  Your argument must be "clear, strong and convincing".  Otherwise, it's a "he said; she said" argument.  If the property is stilll for sale and the seller is happy with the new agent, it is unlikely that the seller would agree to testify at the hearing.  Also, since the seller has lots of other pressures on them, they may not be receptive to getting involved in what they may perceive to be a Realtor problem. 

And bear in mind that Darleen's comments are not accurate; you don't "report an ethics violation", you file a complaint.  A Board cannot fine an unethical agent, only the hearing panel can do that after hearing the testimony in a formal hearing.  That "due process" thing must be respected.

I'm in agreement with Bill S.  Is is worth the time and effort?  If they were not working well with him and taking his advice, why fight for them?  How do you know who to believe?  Would any Realtor really put themself at risk to jeopardize their career?  I would ponder that question. How would you know who contacted who?  Why assume that the wrong thing was done? If you can, have the new listing broker talk with your broker.  You may feel better when you hear their side of the scenario.

It's a Good Life!

Fran