Understanding the Realtor® Code of Ethics: Article 13 - Realtors® Are NOT Attorneys

Hi Mariana, Another great post on our COE. This one actually addresses one of my pet peeves. I dread it when I receive the 25 page purchase offer. Our standard contract is 4 pages, add in a HOA disclosure and you should be good to go. But nooooooooooo.....some of the larger franchises have to have 15 pages of additional disclosures, addendums and other totally redundant or unnecessary pieces of paper. It really is just a waste of time and very confusing to the consumer. I really don't need 3 addendums relating to a home inspection. It's already a part of the contract. Fil in the blanks and be done with it.

There is also a HUGE difference between going over a contract(which we can do) and interpreting a contract(which we can't do). My practice is to put a cover sheet on all offers outlining the basic points of the offer attach a NET sheet and then E-mail it or fax it to my seller and suggest they have an attorney look over it. Most review it, sign it and send it back. That's it. I do not go over contracts in detail with my customers. In hundreds of successful transactions, I have never had an issue with a contract dispute. Of course, I do know what's in a contract and have reviewed it thoroughly before asking my customers to sign it. They trust me to be watching out for them.   

I agree... this is a CYA industry - both for mortgage brokers and real estate agents... which is why we should always have great Attorney Partners!

I love this article, Marianna. It is something that is so critical to remember, yet we are so often asked to give advice that borders on legal, as how often do we hear other agents proffering advice that is clearly legal in nature. The risk is tremendous (especially in a state like California that is known to be litigious). And I think it is easy to slip into the mode of being helpful and offering counsel that really is outside our purview.

You do such a great job of summarizing these articles - I look forward to each of them. Keep it up.

Jeff

Great job Mariana,

We fill in the blanks here as well. Our forms on line also have a clause library...a great resource for all us agents. No need to write up addendum's...just pick form the pre drafted ones.

"Bernie- I see your point, but I must say that with too much ambiguity, there is too much room for error. I much prefer the state approved forms. "

That was my point! Sorry it wasn't that clear.

As a current RE Attorney and broker I too agree that standardized approved forms provide a great benefit to all parties with a minimum of inconvenience.  I deal several times each month with concerns from both buyers & sellers about what items mean in addendums, much less occupancy addendums, short leases, concessions and other negotiations.  

One recently self-drafted form addressed "items left in the home" and intended it to include fixtures, appliances, and who knows what else according to the buyer.  The dispute now is that the stove and fridge are gone but aren't addressed in the contract specifically as the buyer's intended due to poor language and specificity.