
An animated discussion on ethics training
“Does anyone else find it ironic that NAR – the trade association for Realtors – has to mandate that members take an ethics class every four years?” An agent who attended one of my company’s broker opens yesterday posed that question to the wine and cheese grazing attendees. Of course, that opened up an animated discussion on the value of etchics training and the lack of enforcement when the rules are violated.
One agent volunteered that the guy sitting next to her in her last ethics class played games on his cell phone and then cheated during the test at the end of the class. Seriously, dude? You cannot even pay attention long enough to pass what should be the easiest test you’ll ever have to take in your career? Perhaps he was just seeing how far he could push it by cheating during an ethics test, to see if anyone else around him caught the extreme irony there. None of the other agents around him – including the agent he cheated off – turned him in and the instructor didn’t notice.
This same agent later called one of my sellers and tried to convince him to break a listing contract with me, because he had a “guaranteed buyer” in the wings. The seller was an attorney, and this bozo tried to get me cut out of the deal, offering the seller a reduced fee to dump me. The seller held firm and directed the agent to call me, then the seller called to let me know about the conversation.
“But you know if you file something the other agent will know.”
It gets better. After the deal closed, I requested paperwork from our local Board of Realtors to file an ethics complaint. The person in charge said, “But you know if you file something the other agent will know.” Gee. Really? I asked her to send the paperwork over anyway.
I called the seller/attorney and asked him to repeat the conversation to me, because I was documenting it to file a complaint. He turned wishy washy on me at that point and his story changed from “The other agent tried to get me to dump you as the listing agent to cut you out” to “Well he really only asked a few questions and I told him to call you. He probably didn’t mean any harm by it.” So there goes my star witness, who doesn’t want to rock the boat.
I didn’t file the complaint. I resorted to the “turn the blind eye but never trust the sleazeball again” path. And that is what happens to almost all ethics issues I hear about / see in person.
That’s what happens when you have a self-policing group of “professionals” who would rather not “narc” on a fellow agent. After all you’re probably going to end up on the other side of a deal from this guy some day, right? The guy in my example has sold two of my houses since that run-in. Why tick him off by filing a complaint and going through all that hassle? If he stops bringing buyers to my properties then my sellers ultimately lose, right?
Boiling down the CoE
The NAR Code of Ethics takes up pages and pages of tiny print, and it runs each year in their trade magazine (I think it’s the January issue). Does anybody read that? Probably not many. I’d argue none of us ever should have to read it again. Simply follow this advice instead. The thousands of words in the Code boil down to one thing: Do unto other agents, and consumers, and clients, what you would have them do unto you. It’s the Golden Rule. Simple. Well, obviously not, for many agents and brokers.
The sad part is the agent in my example had no clue how close I was to filing that compaint, and if he did know he’d probably scratch his head and wonder why his actions were “wrong.” Making us take a one-day class every few years won’t “make” the unethical agents suddenly operate ethically. Most of them just don’t get it.
Missy Caulk
February 26, 2009 at 8:58 am
We had the FBI in 2 years ago in Ann Arbor. It was a great learning experience.
My daughter last year got a referral, she met with them, talked to them. She felt like it was fraud. We called our attorney, he put us in charge of the FBI division to report.
We told them the whole story, no contracts were written yet.
Here is the issue: She had to come forward publicly for them to move forward. No way to keep her identity hidden. So we said no.
A few weeks ago she ran into the guy who referred them to her. She apologized and said “I’m sorry, I just was not comfortable working with them.” She gave no reason.
He said, “don’t worry they are in jail.”
Matt Stigliano
February 26, 2009 at 9:40 am
Danilo – Federal charges makes it even scarier. I guess the government has to show they’re doing something about it and if they get some of the “crooks” then its a good thing. I do fear the idea that not knowing something can still lead you to trouble…especially when it comes to your short sale example. Its a double edged sword…we’re not tax accountants and can get in trouble for giving financial advice in many respects, but not reviewing someone’s finances can get us in trouble too. Its a fine line at times.
Kim Wood
March 4, 2009 at 9:01 pm
What is it they say? Ignorance is no excuse….. It is scary out there sometimes – we have a lot we have to keep informed about. Read, read, read – and if you don’t understand – ask !
Thanks for the reminder – and good to see you this week 🙂
Beth Levine
November 15, 2009 at 11:41 am
Matt is spot on, Kim is living in “LaLa Land”. There are THOUSANDS & THOUSANDS of NEW Federal Rules and Regulations that even most real estate attorneys are not familiar with; just too many, not unlike the tax code. Read, read, read? Yes, a good thing. But if one thinks that will keep them safe from the long arm and ambiguity of the Federal Rules and Regulations, then my friend, I hope you never find yourself on that end of the stick. The ONLY protection you may have is to maintain an ongoing relationship with a real estate attorney. Ask for a discount as you will have him check and give his Legal opinion of all of your tranactions, IN WRITING. If the Feds ever come knocking, then you will at least have what is referred to as an Affirmative Defense; you relied on the advise of expert counsel. This is the ONLY way to protect ones self in this day of the Federal Witch Hunt. Some may be guilty, many are not, they just did not know. It is just as Matt said and there are people sitting in Federal prison today, with LONG sentences; people like you who just didn’t know. Don’t judge too quickly or take this too lightly; you may be next and crying “fowl” when it is at you back door-Good luck to all in the industry today!-Beth