Oct. 1, 2005 - Dealing With Another REALTOR's Client

http://www.realtor.org/rmomag.NSF/pages/ethicsjuly05?OpenDocument

Q: A seller Id never spoken to before called me to list his house. He told me it had been listed with another salesperson, but he wasnt working with her anymore. I checked the property status in the MLS, which showed the listing as withdrawn. When I asked the seller about his previous listing agreement, he told me hed been released from that contract. I went ahead and listed the property. Now the original listing salesperson claims I violated the Code of Ethics. Did I?

A: No, you didnt violate the Code. Although Standard of Practice 16-4 says you cant solicit the exclusive listing of another REALTORŪ, that isnt what happened here. Instead, without either directly or indirectly initiating the discussion, you were contacted by the client of another REALTORŪ. In such a case, Standard of Practice 16-6 permits you to discuss the listing with the client. When REALTORSŪ are contacted by the client of another REALTORŪ regarding the creation of an exclusive relationship . . . they may discuss the terms in which they may enter into an agreement.

You also did the right thing by checking the status of the listing in the MLS. Because you found that it had been withdrawn rather than expired, there was a question about whether the previous listing was still in effect. Standard of Practice 16-9 requires that before entering into an exclusive agreement with a client, a REALTORŪ make reasonable efforts to determine whether the client is subject to an existing exclusive agreement with another broker. In asking about the previous listing and learning that the seller had been released, you fulfilled your ethical obligation. Its also a good idea to ask to see the sellers written release if the seller is willing to share it with you.