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 ethical or not

Created by:
LeKaren Lockridge, Licensed Real Estate Agent,  Richmond,  TX

Date: April 13, 2008, Number of Replies: 24


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Is this okay?  One of my clients works in her Grandmothers restaurant and got into a conversation with a customer about buying a house.  The customer was a Realtor and asked who she is using.  When she told him, he replied that he has worked in the same area for a long time and never even heard of me before.  He continued to ask questions and even gave her his card saying, "It's all in who you know, and if you ever even have a question, just call me."  This client is working toward getting her credit rating in better shape and building a down payment and I have worked with her since September 2007.  She thought the way he came off was very unprofessional and so do I.  Was his actions and words ethical.
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Candice Donofrio Licensed Real Estate Broker,  Bullhead City & Fort Mohave,  AZ

Date: April 13, 2008

I just came from a 2 day ethics class!  :)

Questions:  Are you both REALTORS?

Do you have an exclusive representation agreement  (signed BBA) with the consumer?

If you do, and she approached the agent, the agent could discuss the terms of future representation with her upon expiration of your exclusive, but that is it.

It's possible that if the agent approached the consumer and continued to pursue her after she disclosed she had representation, that the agent's words and actions may have been inappropriate. However, it sounds more like he approached the line but did not cross it.

If you do not have signed exclusive representation with that buyer, she is 'fair game' no matter who approached who first.

Fortunately, it sounds like you have a rapport with her.

(How'd I do, COE experts?)  :)

Candice ~~~
Candice A. Donofrio, ABR, CCSS, e-PRO, MRE
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Scott Nelson Licensed Real Estate Agent,  Medford,  MA

Date: April 13, 2008

Personally I wouldn't have commented on another agents status. Perhaps the agent discussed is an "uber agent" in the area, but it's one thing that keeps new agents coming into the business, their axcessibility and eagerness to help clients find properties. An inverse of the question at hand is why given this "uber agent's" reputation hadn't the client in question worked with them or even known them. I've only been in the business for 5 years and have come up on this situation several times. Your broker/owner can assist you with how to reply,  or you can really show how your earnestly working in their best interests and have the time and resources to best assist them. Don't make it an issue with your client, instead display your professionalism and rise above this issue.

I wouldn't confront the other agent they may be a listing agent for a property in the future. At the next professional contact with the agent I would say hello and mention how they had met your client. That should be enough to "mark " your territory and advise a seasoned agent of your relationship.

I use the term agent rather than Realtor(TM) because you both may not be Realtors(TM). If that is the case refer to the Rules of Ethics for Realtors(TM). Many "older" agents have too much confidence in their positions as an "authority" and assume their reputations will carry them. As a "fresh" agent you have the opportunity to show your zeal, professionalism, and dedication to your client to find them the property they desire.

Good luck in your endeavor

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Date: April 14, 2008

Ethical or Not??? Do you have an exclusive buyers agency agreement with this
person? If so a big YES, if not, it is a good time to get them to sign
one... This agent should have not given a card...IMHO...

Is this okay?  One of my clients works in her Grandmothers restaurant and
got into a conversation with a customer about buying a house.  The customer
was a Realtor and asked who she is using.  When she told him, he replied
that he has worked in the same area for a long time and never even heard of
me before.  He continued to ask questions and even gave her his card saying,
"It's all in who you know, and if you ever even have a question, just call
me."  This client is working toward getting her credit rating in better
shape and building a down payment and I have worked with her since September
2007.  She thought the way he came off was very unprofessional and so do I. 
Was his actions and words ethical.

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Steele Propp Licensed Real Estate Agent,  Minneapolis,  MN

Date: April 14, 2008

Is this okay?  One of my clients works in her Grandmothers restaurant and got into a conversation with a customer about buying a house.  The customer was a Realtor and asked who she is using.  When she told him, he replied that he has worked in the same area for a long time and never even heard of me before.  He continued to ask questions and even gave her his card saying, "It's all in who you know, and if you ever even have a question, just call me."  This client is working toward getting her credit rating in better shape and building a down payment and I have worked with her since September 2007.  She thought the way he came off was very unprofessional and so do I.  Was his actions and words ethical.
To be considered unethical one really has to violate our Code of Ethics.  Do you see a specific violation?  Ethics is an area where people use the word a lot but every person can have a different interpretation.
 
Unprofessional?  That too is largely subjective.  In the eye of the beholder.
 
Personally, most of us would have backed off immediately once another agent was named.  But at the same time a couple of probing questions is not out of line.  Afterall, some people will just "say" that they are working with an agent because they don't want to talk to salespeople.
 
So it's not a cut and dried situation. 
 
Now, if you have an exclusive buyer contract this would be a different story.  It would be a clear cut violation of the COE to solicit the client of another.  Here in Minnesota it might also be a violation of statue as well.
 
Is she under contract?  If not, maybe she should be.  Even during this "waiting period".
 
Steele

Steele V. Propp
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Andrew Wetzel, mba Licensed Real Estate Agent,  Havertown,  PA

Date: April 14, 2008

In my opinion, if the customer is in fact a Realtor, it was at the very
least unprofessional and could very well be unethical as he continued after
hearing that she had an agent (of course, if you do NOT have a signed
representation agreement this gets more complicated).

Two things to consider. First, if the person is not a Realtor, there is no
Code of Ethics to consider so it remains at best "unprofessional". Second,
if the person is a Realtor AND if you file a complaint, any Grievance
Committee would probably pass the complaint on to a Hearing Panel (the
Grievance Committee acts as a Grand Jury and has one duty to consider: if
the actions in the complaint actually took place, is it POSSIBLE that a
violation of the Code of Ethics occurred? They do NOT "try the case").
Here is the sticky point: your client would have to "testify" in front of
a Hearing Panel in front of the accused agent (what you offer is "hear
say". I do not believe that a written statement would suffice as an
accused person has the right to confront their accuser) and the agent would
get a chance to offer their version (these often differ, at least in
nuance, from what gets reported). Would she be willing to "testify"
against one of her grandmother's customers? Do you really want to subject
your client to our process? You could look bad by doing so.

Talk to your Broker or manager to see if they are willing to back you,
discuss this with your client (she may simply want to buy a house and not
get involved) and consider whether you really want to move forward. I am
not suggesting that you accept this behavior but there are a number of
aspects to consider before plowing ahead. Perhaps talking to that agent's
Broker or manager is a good alternative. I am not sure that calling the
agent directly would solve anything.

Best wishes,

Andrew

Andrew Wetzel, MBA
ABR/ CSP/ e-PRO/ GRI/ REALTOR/ MEDIATOR
Century 21 Alliance
1100 West Chester Pike
Havertown, PA 19083
Buyer & Seller Agent Licensed in PA. (RS 213448L)
Office: 610.853.2700 x604/ DIRECT: 610.853.5604/ Cell: 610.457.0831
andrew@AndrewWetzel.com
Visit www.AndrewWetzel.com today to view properties!

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Lonette Sellers Licensed Real Estate Broker,  Brentwood,  TN

Date: April 14, 2008

 He continued to ask questions and even gave her his card saying, "It's all in who you know, and if you ever even have a question, just call me."  This client is working toward getting her credit rating in better shape and building a down payment and I have worked with her since September 2007.  She thought the way he came off was very unprofessional and so do I.  Was his actions and words ethical.

The answer to "ethical" issues is usually to apply the Golden Rule and ask yourself how you would handle things if the situation was reversed.  Unfortunately, not all Realtors operate this way and when they behave less than professionally, it reflects badly on us all.  Implying to have "never heard of you" appears to be an attempt to devalue you and that goes against Sales 101A - empowering yourself by belittling your competition...a big no no.  A good thought might be to suggest to your client that the Realtor in question might be new to your area or to our business (but you don't know for sure), then to reassure your client that you will always be there for him/her, no matter how many semi-professionals may approach them. It's a good idea to also mention you hope they have the fortitude to choose to stay loyal to the hard working professional who has been serving them and maintains a solid relationship with them (you), not just a one time conversation.   Of course, do all of this without putting the other Realtor down, which will only cause you to appear stronger and more reputable in your client's eyes.   Then, I'd work on getting a Buyer Agency agreement signed with that client, if at all possible, to cement your relationship and to move it forward to the next level of committment.
 
Lonette Sellers
Broker, ABR, CRS, GRI, e-Pro
Re/Max Elite, Brentwood TN
Cell (615) 495-7770  Fax (615) 376-7850
lhobbs01@comcast.net
Serving Home Buyers & Sellers Since 1987
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Eric Stevens Licensed Real Estate Broker,  Brant Beach,  NJ

Date: April 14, 2008

The customer was a Realtor and asked who she is using.  When she told him, he replied that he has worked in the same area for a long time and never even heard of me before.  He continued to ask questions and even gave her his card saying, "It's all in who you know, and if you ever even have a question, just call me." 

He should have asked if she had a signed agreement to be represented by you. If the answer was ‘yes’, it would probably be unethical for him to pursue the issue any further. If the answer was ‘no’ then he is free to pursue it as long as he is honest in any representations he makes about his competitors.

 

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Lekaren Lockridge Licensed Real Estate Agent,  Richmond,  TX

Date: April 14, 2008

I'm a Realtor, and from the MLS web site, so is the person in question that have pursued my client.  I have been in this area since day one, 6 years, I have a GRI, e-Pro, QSC and have taken classes as a HomeStager.  I have a web page, a MLS web page, I'm a HUD agent and spend an awful lot of time learning every detail of this business and pride myself on being very knowledgable about real estate and the business.  When I tried to find out about this particular Realtor, I couldn't find anything except his name on the MLS list, (no web page), his company and license info and nothing else except his name on the company web page, (no picture or bio). 

I have a representation agreement with this client, of course, and have a very good relationship with her, otherwise I don't think she would have called me from work to tell me about this situation.  I asked this question, basically to see what my friends and fellow Realtors had to say.  From what I heard from my client, he was aggressive, pushy, and kept telling her that, "it was who you know that mattered."  She told me that she took it as a put down to me and wasn't very happy that he also thought she was incompetent in not remembering who I worked for when he asked her.  I think this person did not know what he was doing.  It's possible he was a part time Realtor, like I have come into contact with time and again, and doesn't have the education to be out there talking to anyone.  I personally am extremely offended by this person and would like to tell every part timer out there, it does not matter how much time you put into this business, just make sure you know what you're doing.

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BrucePaluzzi@comcast.net

Date: April 14, 2008

 

""The customer was a Realtor and asked who she is using.  When she told him, he replied that he has worked in the same area for a long time and never even heard of me before.  He continued to ask questions and even gave her his card saying, "It's all in who you know, and if you ever even have a question, just call me.""

My response is this:  The good news is that your clients found the person offensive, so don't stress it too much...BUT, I would bring it to the attention of your local MLS president to ask his/her opinion.   By doing this, you get to find out what is or isn't considered legal for your MLS and for your area, plus you get to mention the persons name to your MLS president, who will remember it I promise you.   We recently had an agent who FINALLY got suspended for a year after repeatedly violating all sorts of rules and regs.   Not everyone filed formal complaints against the person, but many people brought the situation to the attention of the MLS president.  Although we are not supposed to gossip about others, I assure you that people reputations spread like wildfire and come into play when a formal complaint is filed.   If you have no "bad marks" against your name you will be treated fr better than someone who comes in front of an ethics committee with a rotten reputation!     ~BrucePaluzzi@243-9999.com      www.243-9999.com

 

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