I am on the professioal standard committee of our local association. Besides being a member, I frequently am the presiding officer on these cases. We get the general run of the mill, untrained agents and those who let greed get in the way of their decision making process.
But, the one that really gravels me is Article 11 violations. The first part asks that we are reasonably competent and operate within the standard of care. But, the second paragraph is where the test is frequently made. It says that an agent should not work in an area of real estate unless they are competent. In California, once licensed, an agent can sell homes, income, new homes, commercial,property, raw land. and biz Ops. In addition, they can do loans, lease real estate and property manage. There is no way that anyone, including me, is qualified and competent in all these areas ..... even marginally. But, I see it happen every day. The poor clients don't understand that the nicest residential agent may not know what to do with a 10 unit apartment house. I had a recent case where I was an expert where the agent did just about everything wrong including but not limited to :
1) Used the residential form on an income property'
2) Didn't get or ask for a whole list of disclosures that should or could have have been provided
3) Left language out of the contract and failed to write in language that would have benefited the buyer
4) When countered, didn't effectively counter back to protect the buyer
4) Once the disclosures that were made, failed to point "red flags" out to the buyer and give them competent advice on what to do
5) Allowed Passive contingency removal, then let the date pass without asking for an extension because the buyer didn't have their loan yet
6) And, a lot more.
And, what happens to the agent. Yes, they got sued but the agent probably has a $2500 deductible on their E/O policy ....thus, the agent is not really hurt. The client, on the other hand .........
We have tp put pressure on representatives of our state Associations to raise the education requirements for becoming an agent. One solution is to require that we take extra training and testing if we are going to do something other than residential. I know this is difficult because in California, our own Association (CAR) has opposed increasing educational requirments. Maybe they see less members. I would rather they focus on excellence.
This isn't about excluding new people from the industry, as the unions sometimes do. This is about protecting the clients form a well meaning agent who just doesn't know what they don't know.