In January of 2006 changes to Article 1 of the REALTOR® code of Ethics became effective. I don’t know why so many REALTOR®S have such a hard time with this change. It is really a simple disclosure requirement but much like our agency disclosure was in the early 90’s, it is being met with resistance. I think REALTORS don’t know how to handle this disclosure as it brings out a little secret that they are uncomfortable with. This little secret has in some cases been practiced in the state of NH for many years. I think that some REALTOR®S feel that NAR is sanctioning or recommending the disclosure of offers…the old phrase comes to mind here “RDR” …REALTOR®S Don’t Read. NAR is not sanctioning the disclosure of the terms or conditions of buyers offers but simply requiring
REALTOR®S to give buyers the heads up…that this COULD POSSIBILY happen…not that it WILL but that it could be a POSSIBLITY.
• Standard of Practice 1-13
When entering into buyer/tenant agreements, Realtors® must advise potential clients of:
1) the Realtor®’s company policies regarding cooperation;
2) the amount of compensation to be paid by the client;
3) the potential for additional or offsetting compensation from other brokers, from the seller or landlord, or from other parties;
4) any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g. listing broker, subagent, landlord’s agent, etc., and
5) the possibility that sellers or sellers’ representatives may not treat the existence, terms, or conditions of offers as confidential unless confidentiality is required by law, regulation, or by any confidentiality agreement between the parties. (Adopted 1/93, Renumbered 1/98, Amended 1/06)
I welcome your Comments or Questions?
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