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Preach Where you Practice

By
Services for Real Estate Pros with The Tech Byte

Practice Real Estate where you are licensedI guess the phrase is Practice What Where you Preach.......

 In another words........ each state has its own licensing rules for Real Estate Agents to follow.

I will go out on a limb and say, that one of the rules that each state does have is....

Only practice Real Estate in the State in Which you are Licensed.

Why do I see agents from around the country answering questions on Localism.com, Trulia.com, Zillow.com, and other Real Estate platforms from potential buyers/sellers out of their licensed state?

This is serious business, Folks. If you have not practiced real estate long enough, let me fill you in on something - each state has different regulations and practice methods.  There is not a National Real Estate License Commission.

Please keep your Real Estate Practice in your state. Limit your answers to people in your area. It'll keep you out of trouble. You're hanging like this little bee on a piece of flower.... clinging with all it takes not to plummet to the ground....

 

Hold on Bee

 

 

Comments (50)

Mina V. Garrey
Commercial Capital Properties - License #01768282 - West Los Angeles, CA
Commercial Capital Properties, Los Angeles, CA

Hi Kim, good point. I think sometimes people get caught up in the thought of offering advice and being helpful without realizing that the information may not applicable from state to state. 

Jul 17, 2008 11:07 AM
Dawn Grasty
Prudential YSU Realty - Durham, NC
Durham NC Real Estate

Absolutely -- AMEN! It's almost as annoying as the client's uncle, who l iives two states over, telling your client that you, the realtor licensed in the state where the transaction is to take place, doesn't know what they're talking about! Come on!!!

Jul 17, 2008 12:04 PM
Vicki Burton
Southport Realty-Southport, North Carolina - Southport, NC
A local Buyer's Agent - Southport NC Real Estate

You've made an excellent point...well said. I think that there are so many venues on the internet for people to stick their nose into, some people can't help but try and be an authority.

Vicki

Jul 17, 2008 12:28 PM
Margaret Mitchell
Coldwell Banker Yorke Realty - York, ME
Seacoast Maine & NH Real Estate

OK, I'm gonna buck the trend and go out on a limb here. 

There are many, many questions on Trulia, and similar consumer/pro mixed sites, that are quite generic and not state specific.  I am going to venture that more questions are NOT state specific than are. 

Do you see a problem in answering ALL questions, if the the consumer is from out of state?  If you do, and that is certainly your perogative, why not make the point on the sites in which you believe the problem occurs?

My point?  I see a lot of value in a conumer/RE pro dialogue, as long as there is proper disclaimer i.e. I don't know your state laws.  I personally have learned a lot from out of state realtors, both as a R.E. Pro and consumer, on generic real estate issues.

And re: Lane's comment on the "You need to go out and get a real estate attorney right now" answers.  I have given this answer myself, many times.  Some peeps just need to be beaten over the head with a baseball bat to force them to consult an attorney.  They figure a realtor is free but an attorney costs money.  And WHY do I make this point?  Because I do not give legal advice...

I personally do see value in these types of forums, where RE pros and consumers discuss and cross state lines.  I fully expect to be flamed and will now take my lumps.

P.S. I consider any post that generates this much thought and discussion a very good post.

 

 

Jul 17, 2008 12:41 PM
Anonymous
Anonymous

I agree....markets and licensing law vary from state to state and it really clouds the issues and has the potential to harm trust and relationships between Realtor and client. 

Jul 17, 2008 12:55 PM
#35
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

You are right.  If you are not licensed in a different state then you don't know all the local rules and exceptions.

Jul 17, 2008 02:18 PM
Laurie Mindnich
Centennial, CO

While it is recommended to remain within one's "state" with responses on public sites, sometimes the answers provided are incorrect. If you can't respond correctly, don't- without backing up (facts and links) your "take".

Jul 17, 2008 02:19 PM
BethAnn Long
RE/MAX of Spokane - Spokane, WA
Realtor, CRS, e-PRO, CLHMS Spokane Wa Real Estate

SUCH A GOOD POINT~!

I stopped answering questions on Trulia for MANY reasons.

Loose lips sins ships.

BethAnn in Spokane

Jul 17, 2008 04:05 PM
Anonymous
Anonymous

I like your style Kim.  You could not be more correct...thank you!

Jul 17, 2008 04:29 PM
#39
Earleene Woods
Keller Williams Experience Realty - Murray, KY
ASP, CRS, GRI

Also, don't give opinions of value outside your market.  Love it when sellers say, "Well, my sister sells property in California and she said m house should be worth 3 or 4 times this price.."  Well, it would if it was in California.  Of course, the sister is usually new to real estate and works part time.  :-)

Those are usually the ones also handing out legal opinions also.  I shudder to think how little I knew when I started...still shudder to think how much more there is to know

Jul 18, 2008 01:22 AM
Jason Crouch
Austin Texas Homes, LLC - Austin, TX
Broker - Austin Texas Real Estate (512-796-7653)

Kim - I have often wondered about this myself.  I am licensed as a broker in Texas, not elsewhere, so I am always careful about answering questions outside of my home state.  Good point!

Jul 18, 2008 04:23 AM
Frank & Jodi Orlando
Frank & Jodi Orlando Get Us A Home Realty Atlanta Homes Sale - Cumming, GA

Kim, we are licensed in three states, we co-broker in those states with other brokers. We operate only as a sole proprietor and allow our clients out of state listing information. It is a referal system to an out of state broker who can answer the questions for clients.  

Jul 18, 2008 05:13 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Applause Applause...clap, clap,...stamp feet, wave hands,..no kidding...I think that they are some realtors who are insecure...and just like some folks like hearing the sound of their own voice better than anything else...so it is for these folks...seeing their name in print regardless of how inane their "advice" ie call a lawyer, call a local realtor...it's what they need...and we don't want...bravo...I meant to blog the very same thing....maybe I did...or did I just want my name in print...I forget...

Jul 18, 2008 07:28 AM
Stacey McCarthy
McCarthy Real Estate - Philadelphia, PA
@SmartGirlsOwn

Amen Sister! I was just thinking that while answering a question in the Pennsylvania section of ActiveRain.

Jul 18, 2008 12:51 PM
Birmingham Alabama Real Estate, Stephen Wolfe
LivingInBirmingham.com - Birmingham, AL

Kim, if I thought you could see a standing ovation, I would do one! I often see agents answering questions in areas that they cannot serve. I have never understood this. It seems with all the different states and different laws that they could be opening themselves up to quite a lawsuit.

Jul 18, 2008 03:18 PM
AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

It seems to be all about the points or number of questions answered... For the most part, I strongly agree that you should give guidance only when you know what you're talking about.  In some cases, where a general concept is being covered, it can be helpful to get variety of opinions, but always note when you are talking outside your licensed area.

Jul 18, 2008 03:42 PM
Maya Thomas, Broker
Tampa, FL
Please see my client recommendations.

Good point!

Jul 21, 2008 04:22 AM
Utah Dave
UtahDave.com Neighborhood Experts - South Jordan, UT
Homes for Sale - Utah

What does it really benefit someone and why do they have so much time to preach to clients of other states.  Good reminder.

Utah Dave

utah homes for sale

Jul 21, 2008 06:41 AM
Susan Zanzonico
Berkshire Hathaway Home Services - Morristown, NJ
Sellers/Buyers Agent, Morristown NJ Real Estate

Real estate rules and regulations vary from state to state.  Its wise to be cautious.

Jul 24, 2008 08:48 AM
Stacey McCarthy
McCarthy Real Estate - Philadelphia, PA
@SmartGirlsOwn