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August 2008

A Twisted View of Responsibility

Date: Aug. 19, 2008
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Responsibility. 

It’s something I’ve tried to avoid all of my life. 
 
“Take responsibility for your actions.”
 
“Be responsible!”
 
Not meaning to bring my dad up again so soon, but responsibility is something he started harping on me about since the first time I dropped my pacifier and shrugged my shoulders when he asked how it ended up on the floor.
 
Just as ugly to me is the word “accountability.” My dad liked that word too. Gag me!
 
They kind of go together, accountability and responsibility. I’m not even sure I always understand the difference, but I’m sure my dad could tell me if I asked. I’m not going to call him, though. He’d ask me why it had taken so long for me to call him. “Don’t you realize it’s your responsibility to…” yatta-yatta-yatta.
 
Sure, Dad.
 
We all have responsibilities, and we’re all accountable to someone. As an MLS administrator, I’m responsible for making sure the MLS system is up and running, and I’m accountable to you, Barry, the Board of Directors, the MLS Committee, the street cleaner…
 
The MLS Committee and Board of Directors are responsible for creating the rules that govern the MLS. The rules must accomplish certain things, like making sure listings are accurate, without stepping on the toes of the brokers as they differentiate themselves from other brokers. The MLS Committee and Board are accountable to the National Association of REALTORS® who insists that the MLS Rules adhere to their policies, because they are concerned about, and accountable to, you the member.
 
In turn, as a Realtor, you have the responsibility of adhering to the Code of Ethics, and you are accountable to your fellow Realtors and ECAR for the way you conduct your business, ethically speaking. The cool thing is that you are also a “fellow Realtor.” Other Realtors are accountable to you for their conduct. But even so, in order to exercise this accountability, you have the responsibility to file a complaint with the association.
 
See why I try to avoid these words. It’s a never-ending chain.
 
So what does this have to do with MLS? Glad you asked. To answer, I’m going to tell you another story. But sorry, no girlfriends in this one.
 
Once upon a time a Realtor entered a listing into the MLS that raised some eyebrows. The reason it got everyone’s attention was because the price was “way out of line” in some people’s view.
 
Well, everyone was up in arms. Everyone wanted to know what the MLS was going to do about this listing. They all waited with breaths held for the MLS to describe the extent of their wrath.
 
The MLS had the responsibility of responding to concerns about listings that might be inaccurate, so they confirmed the price was accurate. The MLS made sure that the price in the computer was the same one that the Listing Agent and the Seller had agreed to. But the MLS did nothing else.
 
The people got upset. “What?,” they cried. “That’s it? No fines? No lynchings?”
 
“Nope.  No lynchings,” the MLS replied.
 
“But, why not?”
 
The MLS explained. I seemed that the MLS was accountable to the National Association of REALTORS®, and NAR policy said that the MLS could not interfere with a contractually agreed upon list price.
 
“You wouldn’t want us tell you and your seller how much a property should be listed for, would you?,” the MLS asked. (Keep in mind that in our story, the market may not have been like it is in our all-to-real world, the one where Realtors would love the MLS to tell Sellers what the listing price should be.)
 
“Well, that’s just not right!, “ the Realtors exclaimed. “This is wrong! This can’t be allowed!”
 
The members called for an investigation, asking “what is the Board of Directors doing about this?” They couldn’t understand how a Realtor could do such a thing. “It’s unethical!,” they cried.
 
“Really,” the MLS said. “Unethical?”
 
“Well that’s good news, because – if in fact it is unethical – then you who are up in arms have recourse. File a complaint,” said the MLS.
 
The members started to shy away. “Oh… well… we don’t have time to do that,” they said. “We don’t want to get involved in that mess,” they told the MLS, adding “but it still isn’t right.”
 
“Sorry,” the MLS replied. “If you aren’t willing to step up to the plate and exercise your right of accountability, then you really have no where to hang your hat.”
 
“We know it isn’t as easy as clicking on a link and reporting an error in a listing, but isn’t it just as important?” 
 
The MLS apologized, saying “We can’t do it for you. It’s your responsibility.”
 
So I guess our story ends here. The MLS couldn’t go beyond their responsibility, and the members were unwilling or unable to take it upon themselves. 
 
Is there a moral to the story? I’m sure there is, but I’ll leave you with the responsibility of finding it. I’m sure my dad would help. Want his number?
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The Long and Short of the Short Sale Status

Date: Aug. 7, 2008
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A question came up recently as to handle a Short Sale listings in the MLS when a buyer has made an offer and the seller has agreed to send it on to the lender. May the listing agent leave a listing as active until the lender has made a decision?  Here is the answer:

 
The MLS Rules state that when a listing goes under contract, the listing must be put in either Pending or Contingent status – unless there is a “first right of refusal” clause in the contract with a time frame of seventy-two hours or less.
 
Thus, the question becomes: when does a listing go under contract?  That is probably more of a legal issue than an MLS issue, but let me offer these non-legal thoughts in the form of an analogy. Remember, I am not an attorney and I do not have a real estate license, which means I really don’t know anything about anything. With that in mind, here is the analogy.
 
Let’s say the MLS Rules included a paragraph that said that the only time a man and woman may live together is when they are legally married. How will I know if the woman that steals the covers from my side of the bed every night and I are breaking the MLS Rules by living together? It’s going to be a question of whether we were married twenty-two years ago or only said nice things to each other that day in the park.  
 
My father (who was not an attorney either) taught me that when people agree to something in writing and everyone involved signs it, then you have committed yourself to whatever was agreed upon. For the sake of illustration, let’s say that my father taught me well (please don’t ever tell him I said that). 
 
Now, let’s say my girlfriend and I, lo these twenty-two years ago, went to the courthouse and agreed to be married. Based on what my daddy taught me, if we both signed the marriage license, odds are we were legally married (at least she acts as if we were).
 
Let’s say that my then-girlfriend was under the age of legal consent, whatever age that might have been, when we went to be married. And let’s say that the law at that time said that if someone under this age wanted to be married then a parent had to sign the marriage license as well as the parties wanting to get married. If my girlfriend and I both signed the license, but her father did not sign it, then we probably were not married.
 
The same is true with Short Sales. If you have a contract, then the listing must go into either Pending or Contingent status, but if you only have an offer, then the listing may stay active. If the lender is a party to the agreement, then the lender would probably have to sign the contract too. Keep in mind, though, that the FAR Short Sale Addendum states that the lender is not a party to the contract.
 
Chances are that if you have a contract to purchase with both a buyer’s signature and a seller’s signature, based on what my daddy taught me you probably have a contract.
 
I hope this helps. If it only confuses you, please email me and let me know. 
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