perfect practice
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Nondisclosure
Failure to disclose deficiencies is another frequent ethical dilemma. “What I’m seeing more often is that a buyer’s agent discovers a real or perceived material deficiency and the seller’s agent says the seller ‘doesn’t want to know.’ Once anyone knows of a material defect, all parties are required to disclose it,” says Stark. On a similar note, he recalls a recent discussion on social media during which a REALTOR® asked advice about whether to disclose that a home had been the scene of a homicide. “It was shocking to me how many people said, ‘Don’t do anything; you have no duty to disclose.’ While that’s true in my market—we don’t have to disclose what’s called a ‘stigmatized property’— it may be the right thing to do.”
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iStock.com: Nik01ay/relif/Zenobillis/kmlmtz66
Dereliction of Duty
Article 1 of the NAR Code of Ethics states that REALTORS® are obligated to “protect and promote the interests of their client,” including submitting all offers to sellers. Unfortunately, agents don’t always heed this responsibility. One time, for instance, Cameron recalls submitting an offer on a Friday and not receiving a response from the seller’s agent until Monday afternoon with multiple attempts to reach the agent. She found out the seller had already accepted another offer. “Turns out [the seller’s agent] was a dual agent; he ignored our offer so he could sell it to somebody else and make more money.” The NAR Code of Ethics includes 17 articles governing REALTOR® interactions with clients, the public and each other. To read it in its entirety, visit nar.realtor/ about-nar/governing-documents/ code-of-ethics/2019-code-of-ethicsstandards-of-practice.
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Protecting the profession
Whatever the violation, there typically is only one way to resolve it: report it. “We as REALTORS® have to self-police our profession,” Hunt says. “If we see something we feel may be unethical or unprofessional, it’s our responsibility to report it.” The question is: to whom? Start with the offending agent directly, Cameron suggests. “Most of the time when I see bad behavior, it doesn’t warrant a formal complaint. Instead, it’s an opportunity to have a friendly conversation and help that person be better in their business and a better REALTOR®,” she says. If you can’t reach the agent, or they’re unreceptive, consider elevating it to their managing broker. “We all make mistakes, so I’m willing to give agents the benefit of the doubt,” Neill says. “I’ll often call the broker and—without being accusatory—say, ‘I think this is an educational opportunity.’” REALTORS® also can turn to the ombudsman at their local or state association, whose job is to help parties resolve disputes when communication breaks down between them. “I think ombudsman programs are underused,” Hunt says. “It can be a good avenue for dealing with a problem before it gets overblown.” When all else fails, it’s time to file a formal complaint with the Grievance Committee of your local or state association. “Especially in smaller markets, a lot of REALTORS® are afraid to take this step because they think to themselves, ‘What if I have to work with this person again?’” Neill says. “I understand that concern. But if we’re too afraid to report infractions when we see them, we might as well not have a Code of Ethics in the first place.”
“BEHAVING ETHICALLY IS IN THE BEST INTEREST OF OUR CLIENTS, BUT IT’S ALSO IN THE BEST INTEREST OF THE PROFESSION.” —Maura Neill, CRS
Matt Alderton is a freelance writer based in the Chicago area. Have you encountered an ethically questionable situation? Run it past your peers in our Facebook group, We Are CRS. Your fellow CRSs are here to help!
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The Residential Real Estate Council
crs.com
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Nov Dec