
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.
Jeff Brown
December 2, 2007 at 1:21 pm
Been using them forever. With the hug, you came out way ahead anyway.
Go ASU!
monika
December 2, 2007 at 5:08 pm
I use them all the time as well. No handshake for me.
I’m glad you made your daughter happy…that must have been sweet!
Athol Kay
December 2, 2007 at 6:37 pm
Connecticut is a somewhat strict buyer broker state. I can’t show another brokers listings without a signed buyer broker agreement.
So we get that weird thing where buyers don’t want to sign up with anyone and mess around trying to pump information from everyone.
“What would they take for this house?” (how the fluffy bunnies would I know what some other brokers seller would take???)
“What is it like inside?” (well I can rattle off what I can see on the MLS at least)
“I need a CMA on Enfield” (er… Enfield is a whole town, and about 50 miles north of my office to boot)
“I just want to see the house.” (well before I sign a buyer broker with you, I need a mortgage pre-approval, otherwise I could be wasting my time driving you around like a chump)
“BUT I JUST WANT TO SEE THE HOUSE.” (I know THATS WHAT I’M WORRIED ABOUT.)
“Why are you asking all these questions.” (because every time I don’t, I don’t end up getting paid. After a while, that chafes.)
Jeff Brown
December 2, 2007 at 6:44 pm
Perfect Athol. It reminds me of one of the sayings Grandma passed on. It says what you just did.
About the time the farmer got the old mare to work without eating — she died. 🙂
Patrick Hake
December 2, 2007 at 11:49 pm
I have used buyer broker agreements since entering the business 5 years ago.
I find it is easier for me to ask for them, because I always have.
Many of the more seasoned agents I work with really struggle with the concept of buyer brokers and work without them.
I will typically show a home or even a couple homes as an introductory appointment. If buyers then want to set another appointment, I request that we formalize our relationship.
At the very least, every agent should be able to get a 90 day buyer broker when writing an offer and giving agency disclosures.
Teresa Boardman
December 3, 2007 at 12:58 pm
The only service I will provide with out a signed buyer broker agreement is an initial consultation. I won’t show anyone houses unless they can show me a pre-approval letter as well. When I have someone sign the buyers agreement I get a chance to explain how it all works. Consumers really don’t understand.
Charleston real estate blog
December 3, 2007 at 4:17 pm
I’ve always been a handshake is my word kind of guy like Jonathan and thankfully haven’t been burned … yet. I explain agency, show the agreement but don’t require a signature at that time.
But nobody sees a house without a preapproval letter. As I’ve said to buyers, If you like a house and want to make an offer, no seller will consider your offer without one. Additionally, I won’t leave the comfort of my office and show anyone homes unless they have been preapproved for a loan.
And not to offend the Longhorn fans but I’m with Jonathan on ASU having lived in Phoenix in the mid 90’s.