|
REAL ETHICS by Steve Stazel | December
2006 | Index of all Real Ethics columns
What do you say to your sellers when you take a listing?
What do you say to your sellers when you take a listing?
Standard of Practice 1-12 gives us some guidance here. It states that, when entering into listing contracts, REALTORS® must advise sellers/landlords of
1. The REALTOR®’s company policies regarding cooperation and the amount(s) of any compensation that will be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities.
In Colorado, this requirement is met in the listing contract. Here, it is the REALTOR® and the seller who decide these things.
2. The fact that buyer/tenant agents or brokers, even if compensated by listing brokers or by sellers/landlords, may represent the interests of buyers/tenants.
Do you tell your sellers not to give away any of their secrets to brokers showing their house? Do you tell them, “You can certainly be friendly to everyone but don’t compromise your negotiation position. Mr./Mrs. Seller, the reason you are selling is that you are getting a divorce. If you divulge that to a showing broker, it will give them a negotiation advantage. If anyone asks you why you are selling, have them call me.”
3. Any potential for listing brokers to act as disclosed dual agents, e.g. buyers/tenant agents.
In Colorado we would agree in the listing agreement what our status would be if WE procured the buyer.
You may have noticed in #1 above the words “brokers acting in legally recognized non- agency capacities.” Consider that to mean Transaction Broker here in Colorado. “Well,” you might ask, “if it means Transaction Broker, why doesn’t it say Transaction Broker?” You ask a good question. Here is the reason: In some states, what we call Transaction Broker is called something else. It might be called “facilitator” or some other name…so “legally recognized non-agency capacity” will address whatever term is used in any state.
Each month, the Aurora Association of REALTORSŪ Web site features Real Ethics,
a column by Steve Stazel devoted to explaining Code of
Ethics issues for members. A REALTORŪ since 1974, Stazel is a Professional Standards
instructor and senior Ethics
instructor for the Colorado Association of REALTORSŪ.
If you have an ethical concern or an issue you would like
to see addressed, please call Stazel at (303) 773-3333 or e-mail him at
stazels@msn.com. The comments of this article reflect the understanding and
opinions of the author and do not represent an official expression of policy by the National Association
of REALTORSŪ.
|
