In AZ and other states, being a real estate agent, one is legally bound to act in his or her client’s best interests which includes accounting. Furthermore, we as real estate agents must put our clients’ needs over our own. For the first time, these words became very real for me. Let me explain.
An offer for a property was made for $XXX dollars with a statement that the buyer would pay $XXX towards the compensation for the buyer’s brokerage. The broker for the listing agent did not like the wording even though the buyer’s broker employment agreement would be attached to the offer to verify the compensation.
After a verbal conversation with the listing agent and being old school as one who lives the CYA Axiom, I wrote an email with the specific language for a counteroffer the broker for the listing agent would find acceptable to ensure that the verbal communication between the listing agent and myself was beyond clear. This email included the counteroffer price that was a little higher than the original offered price and the amount of compensation to the broker of the buyer’s agent. (Note: I did speak with my buyers who verbally approve the counteroffer price.)
The listing agent created a counteroffer that had the compensation correct, but made a typo of significant thousands of dollars cheaper in the counteroffer price. I then heard from the listing agent who asked if this was OK. As my fiduciary duty is to my client, not to the listing agent or his or her broker, I could not directly tell him/her of the error. Therefore I verbally said to the Listing Agent:
“You didn’t follow my email with the specifics I noted. However, if you are OK with this, then go ahead.”
Legally, I could not inform the agent of the error which I presumed to be a typo as the savings of thousands of dollars would be in the best interest of my clients. After the counteroffer was signed by all parties and my buyers did immediately notice the error, I contacted my broker who reviewed my sent email and counteroffer. At this point in time, my broker took over and a satisfactory agreement was reached by all parties.
The point being the fiduciary duty in real estate or any other industry is not easy as this real-life situation demonstrated. However, adhering to the fiduciary responsibilities of: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Car (OLD CAR). This situation was the first one that so aptly demonstrated the meaning of these key words:
“Legally bound to act in their client’s best interest…prioritize their client’s needs over their own, putting the client’s interests ahead of the agent’s personal gain.”
Being ethical maybe old to some, but to me is still the only way to be. People buy from people they know and trust. And these buyers continue to trust me as I acted in their best interest.
P.S. Please consider checking out my Facebook business page, The Grit and Gratitude Realtor, that will focus on the Dirt Roads in Mohave County, AZ as well local real estate, lots of dirt or vacant land parcels as some of the local attractions.
#LetsGetBackToRealConversations #WeDoThingsDifferently #ArizonaAcreage #KingmanHomesAndLand #GoldenValleyAZHomesAndLand #HorsePropertiesInArizona #realestateagent
Leanne M Smith, The Grit and Gratitude Agent Who Goes the Extra Mile Because Life Begins Where the Pavement Ends.
Feature Photo Courtesy of Pixabay.com
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