Can a real estate or buyer's agent refuse to submit an offer, and under what circumstances would they do such a thing ?
Is it ethical ? And when ?
Here are a few reasons that I've heard that agents will refuse to submit offers to purchase real estate. (Caution: Don't try these at home)
1. The agent wonders how he or she will get paid if they submit an offer that includes no earnest money.
2. They agent doesn't understand the offer the buyer wants to make because the agent doesn't consider the buyer's decision a normal way of presenting an offer.
3.The agent considers that their buyer is attempting to buy the property with nothing down and plays 'Devil's Advocate' with some mercenary thought that they need to protect the seller and advise the seller not to accept their buyer's offer. (Man, is this unethical or what !!!??)
4. The buyer's agent tells the buyer that the seller has already turned down more than the buyer is offering in an attempt to get the buyer to up the ante'.
5.The buyer's agent says, "Ok, I'll submit the offer but I'm going to advise the seller not to accept it". Man is this flirting with disaster, or does the agent have an ethical responsibility to protect the financial interests of the seller as well ?
There's much to consider here, and so many ethically challenging events taking place, that all of the above appear to be in the red zone.
In the state of Tennessee the law is clear. Under Part 4 of the Rules and Regulations of the Tennessee Real Estate Commission:
62-13-404.Duty owed to licensee's client. - Any licensee who acts as an agent in a transaction regulated by the Tennessee Real Estate Broker License Act of 1973 owes to such licensee's client in that transaction the following duties, to:
(1)Obey all lawful instructions of the client when such instructions are within the scope of the agency agreement between licensee and licensee's client;
(2)Be loyal to the interests of the client. A licensee must place the interests of the client before all others in negotiation of a transaction and in other activities, except where such loyalty duty would violate licensee's duties to a customer under § 62-13-402 or a licensee's duties to another client in a dual agency;.....
That's why I wonder what an agents ethical responsibility would be under example 5 . Help us with this one legal eagles !!!
What are the thoughts and experiences of our great Active Rain community ?