Code of Ethics changes for REALTORS®: is this the solution?...

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Real Estate Agent with Berkshire Hathaway HomeServices 01238708
https://activerain.com/droplet/5d5g

Many Real Estate Practitioners, REALTORS®, and Buyers have been frustrated over the years that they were never sure if the offers were ever presented to the seller. I personally have experienced this on numerous occasions…

www.endrebarath.com

 

Well the latest legal update is as follows: 


Presentation of Offers: Change to Code of Ethics, Standard of Practice 1-7

The C.A.R. (California Association of REALTORS®), Legal Hotline often receives calls from members, especially in busy markets, expressing frustration that they are not sure that their buyers’ offers were ever presented to the seller.  For some time, the RPA (Residential Purchase Agreement) has had a section for seller to initial rejection of the offer or for the listing agent to initial that they presented the offer to the seller.  However, those were a courtesy to the buyer and selling agent and not required to be completed by any law or ethical standard.  



That, however, is about to change.  The National Association of REALTORS®, in response to the break down in the spirit of cooperation, has amended N.A.R. Code of Ethics, Standard of Practice 1-7.  Effective January 1, 2019, a listing broker or agent is required to respond in writing that an offer was submitted to the seller if the cooperating broker who submitted the offer so requests.  The listing broker or agent must respond in the affirmative unless the seller has provided written notification waiving the obligation to have the offer presented.

C.A.R. is looking into ways for members to comply with the new Standard of Practice.  Ideas under consideration include one or more of the following:  New language being inserted into the RPA; Modifications to the existing Sample Letter titled, “Demand That Offer Be Presented to Seller;” A new form or letter specifically requesting a reply to the request that an offer be presented; Or a new form for the listing broker to respond to a selling broker’s request.  At this time, it is too early to tell whether these or other ideas will be adopted. C.A.R. will keep its members informed well in advance of the compliance starting date. 

I find this is all good and well for the REALTORS®, who are members and it will tighten the concerns. On the other hand, no one is talking about the Agents who are NOT members or simply stated they are not REALTORS®.

So, what is the answer? There were times I have submitted offers, asked for confirmation, voice mail was full, texted the agent no response… keep in mind they were all cash virtually non-contingent offers. My answer is simple I am not a vindictive person, times like this or situations like that we should be able to report and have the person’s license revoked. I will be confident this problem would be solved real fast. Easy to prove email time date stamped when and where offer was sent. Licensing reviews it and it is cut, and dry person’s license is revoked.

www.endrebarath.com

So, what do you think of this idea? This could be a Nationwide Answer. Let me know where I am going wrong and what is a better solution? Maybe an outragiously high FINE?

 

If you are looking for a focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly!

If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com  I contribute a portion of my commission to local animal rescue organizations.

 

 

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Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Ricki Eichler McCallum in our purchase offers there is a line for acceptance, counter offer and rejection, the ones who are bad players do not care and disregard any communication...my  point is they need to be eliminated or reigned in, Endre

Jul 08, 2018 02:25 PM #125
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Marte Cliff  we are in 100% agreement these are the ones I would like punished or pushed out of our profession, Endre

Jul 08, 2018 02:27 PM #126
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Dana Basiliere  you hit the nail on the head indeed it is a Fiduciary Violation hence instead of long legal wranglings that no one like a swift punishment from The State Real Estate Department need to punish them, Endre

Jul 08, 2018 02:30 PM #127
Rainmaker
1,396,455
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

Endre - I think losing the license would be a good punishment.

Jul 08, 2018 03:16 PM #128
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Michael Rasch had to smile at your long and detailed comment. Glad your hardcore approach is working for you against the bad apples. I am happy for your. My point was on the Rogue Agents/Brokers that have their Voice Mail filled up. Do not have an office at a specific address, do not respond to texts, do not respond to emails and then you see the listing sell for less than what we submitted an example : All cash, Title only contingency 10 day escrow period above asking by a few thousands.... and the property sells for 20% below list price and the listing agent is on both sides of  the transaction.

These are the ones I want eliminated or punished to break them of this habit, Endre

Jul 08, 2018 03:33 PM #129
Rainmaker
457,307
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, - Your Coastal Bend Home Source

Endre, Yes, they need to be kicked out of our profession but the laws are not there to do it yet and may never be.  It is disgusting trying to work with people like this.

Jul 08, 2018 08:04 PM #130
Rainmaker
1,362,928
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Ugh.  More rules and regulations.  Not looking forward to the contract police.  I guess I haven't been in that situation, so maybe I don't know what it's like.

Jul 08, 2018 11:53 PM #131
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Charles Stallions Property Manager  indeed that is what I would consider and expect from you, but not all are like you, Endre

Jul 09, 2018 12:13 AM #132
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Larry Lawfer  you are a kind person, the issue is on the ones with whom you can not connect via any means...Endre

Jul 09, 2018 12:15 AM #133
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Harrison K. Long  nice to see you, commenting it has been a while, and I agree it is a shame that we even have to have this discussion, Endre

Jul 09, 2018 12:16 AM #134
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kaye Thomas  thank you for adding to the conversation, my take is the license is issued by the Real Estate Department hence they should enforce the policing of the bad apples...Endre

Jul 09, 2018 12:19 AM #135
Rainmaker
51,038
Frank Lay and Lori Hula-Lay
HULA COUNTRY - Fort Smith, AR
HULA COUNTRY Real Estate

The "realtors" trade organizaion is set up to file complaints of agents against agents, the commission on the other hand is set up to protect the consumer from "bad agents".  If the consumer does not file a complaint against their agent then your complaint does not hold water in my opinion.  If you would like to do some investigating and look at the records to see what that property sold for and have evidence that your client's offer was a far better offer and your client asks you to pursue this , or  pursue on your own, then ask your managing broker to contact the agent's managing broker about the issue and make them aware of your concerns, then it should be up to the broker to take action on that agent...ie. for not presenting all offers in a timely manner...we must be putting the concerns of the consumer first and foremost whether "realtors" or not we are all Real Estate Professionals.. and should conduct ourselves as such....I realize this is a valid concern of all REPs...

Thanks Endre...

Jul 16, 2018 07:06 AM #136
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Pat Starnes-Front Gate Realty  the more drastic the punishment the faster this profession gets cleaned up and gets rid of the bad apples. Endre

Jul 21, 2018 02:19 PM #137
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Aaron Robertson  thank you for your comment as to Realtors they can be disciplined with the National Associate of Realtors, my point of contention is the ones that are not under the Code of Ethics there is no real punishment for them or should I say incentive to keep them honest, Endre

Jul 21, 2018 02:22 PM #138
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jeff Bransford  it is not about rudeness it is about fiduciary responsibilities and like you I am not a fan of rules but when rules do not exist than we have anarchy, thank you for your input to this conversation, Endre

Jul 21, 2018 02:26 PM #139
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Marte Cliff  you and I are on the same page it would stop it real fast and let others know that this is not allowed, Endre

Jul 21, 2018 02:28 PM #140
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Ricki Eichler McCallum  my point exactly I could not have said it better than you, Endre

Jul 21, 2018 02:29 PM #141
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Georgie Hunter R(S) 58089  yes you might have a different perspective if you submitted offers over the years to unscrupulous agents and without getting any response for any of your communication means... and then you saw it record for a lot less money than your offer and the agent was on both sides of the transaction, Endre

Jul 21, 2018 02:32 PM #142
Rainmaker
2,759,414
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Frank Lay and Lori Hula-Lay  your comment presents the case, unfortunately most Broker and Agents do not have the time and energy to go through this gruesome process nor are the potential buyers. We all try to get along and discord is not where most sales people like to live. Hence my simplification of the rules and swift punishment for the violators might just be the answer. Endre

Jul 21, 2018 02:36 PM #143
Rainmaker
1,362,928
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Endre Barath, Jr. I have not had that happen, but I can see the potential for abuse, especially when we're talking multi-million dollar listings.

Jul 21, 2018 02:40 PM #144
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