Professionalism In Real Estate

Group Organizer

Aug 21, 2008 1:09:34 PM

5.0 out of 5 (rated by 1 member)

My heart was lightened a bit today. A group of real estate agents (our peers), made (what I thought to be), a fair and very professional decision at an arbitration hearing. We all are experiencing buyer woes in this difficult market, but stealing clients and customers from other agents has always been, and will always be, a tremendously unethical thing to do. This hearing resulted in a positive outcome. This arbitration panel found for the agent who was most definitely the "procuring cause" in a real estate transaction that resulted in a settlement.

The agent who was successful in the arbitration, had shown the property (and others) to the buyer, provided comparable sales information, assisted with financing, wrote a contract, and stayed in touch with the buyer through out the process. For some reason the buyer shut this agent down and told them to hold off before submitting the offer. Now the buyer had a family member in the real estate business. Their family member may have suggested that they write the contract and submit it to the listing agent. Gee, the buyer's relative can now get the sales side of the commission. We wonder why as agents we get a bad wrap. Did this other agent really think this was going to fly? Why should the first agent just sit idly by and do nothing? Fortunately, she didn't.

The family member agent was successful in getting a ratified contract with the seller and they then proceeded to settlement. The first agent was proactive and pursued her case for procuring cause and was successful at the hearing.

As a REALTOR, it makes me crazy that someone who is suppose to be held to the same standards that we all should and must adhere to, is willing to be this self-serving, unethical idiot and do something this under handed. Do I sound harsh? I am sure that I do. But this type of behavior has got to be curtailed. We as fellow agents have to call our brethren to task. We must police our own industry, and eventually hope to minimize and/or eliminate this type of individual from our ranks. This vile behavior continues to feed the negative perception of the real estate industry as a whole.

Sound off.

John Reilly, e-PRO

Group Member

Aug 21, 2008 3:37:32 PM

This post has not been rated.

Thanks for organizing the Professionalism in Real Estate Group, Monica.

Procuring cause hearings often focus on issues of professionalism, as well as contractual matters. http://www.realtown.com/words/procuring-cause

The Members section of http://realtor.org contains some useful resources

http://www.realtor.org/LetterLw.nsf/pages/95procuringcausefactors

"PROCURING CAUSE FACTORS

Whether a broker is the procuring cause of a sale must be factually determined on a case-by-case basis. Many factors can impact a determination of procuring cause, but no one factor is by itself determinative. Procuring cause is in fact the interplay of factors which together demonstrate that the unbroken efforts of a specific broker were responsible for the buyer making the decision to consummate the sale on terms which the seller found acceptable. In other words, a broker who is the procuring cause of a sale is a sine qua non of the sale -- the sale would not have occurred but for the broker's efforts.

When reviewing the factors listed below, it is important to note that the occurrence of any particular factor in a fact situation does not necessarily mean that procuring cause does or does not exist. This is because it is the interplay of factors that is so important in recognizing procuring cause, not the presence of any one factor alone. A specific factor can, in fact, cut either way, depending on its importance compared to the other factors in the case and depending on when it occurs in the timeline of the case....."

Monica McNamara

Group Organizer

Aug 26, 2008 6:55:38 AM

This post has not been rated.

It seems that winning in an arbitration hearing, and actually collecting the monies the panel determined you were to receive are two different things entirely. I was aware that if both brokers did not agree with the decision there had to be an appeal process. I thought the idea was to police our own without involving the court system.

The broker and their agent who was determined to not be the procuring cause of the sale have been paid from funds in escrow. Those monies have been disbursed. It seems as if the broker and agent who were successful and prevailed in their procuring cause hearing is now going to have to pursue this broker in a court of law.

I wonder why we have this arbitration format established if ultimately we have to end up in court to be compensated Looking more into the arbitration process, it seems that the loser never goes away saying, "Here take the money, you were right, we were wrong". These cases almost always go beyond arbitration. It seems that possibly this process needs to be revamped. To possibly allow the actual enforcement of the finding of the panel.

Monica McNamara
htto://www.realtown.com/MonicaMcNamara/blog

Neal Adler, GRI,ABR, e-PRO

Group Member

Aug 26, 2008 7:33:27 AM

This post has not been rated.

In the two associations I belong to the 'losing broker' almost always pays. If they do not the association will issue an order to show cause. This is enforceable in court. Additionally, if the broker does not pay he/she can be seriously sanctioned, in most cases suspension from the association. It seems your association needs to enforce the arbitration awards.

Monica McNamara

Group Organizer

Aug 29, 2008 9:34:41 AM

This post has not been rated.

I couldn't agree more. Coldwell Banker is the largest broker in our area (Eastern Shore of Maryland), the brokerage that was paid the sales side of the commission is not a member of our association, nor does the agent sell real estate in our locale. They are, however, licensed in our state. It seems there are some twists and turns to get compensated in this particular transaction.

Monica McNamara
Ocean City Maryland

Reply to Discussion