Continuing our discussion about Article 1….let’s look closely at Confidentiality. Previously, I asked you to ponder the following,”I go on a listing appointment and the homeowner tells me how much they owe on the property. They list with someone else. (I know, crazy. But it happens.) Next month I have a buyer client who is interested in the property. Do I tell my client how much the seller has said they owe?”
What do you think? According to the Code of Ethics, Standard of Practice 1-9, we must disclose the information to the buyer. The reason is that when you went on the listing appointment you were in no relationship recognized by law that requires confidentiality. However, you do have a recognized relationship with the buyer and you owe them full disclosure of pertinent information.
In most markets, REALTORS never disclose the terms of competing offers or even offers that were not accepted to other buyers. We know that a level playing field is paramount for the consumer and will get the most money for the seller. However, consumers and clients are not required to play by our rules. When counseling a buyer, do you tell them this disclosure is a possibility? You should. It’s in Article 1, Standard of Practice 1-13(5).
These are real life scenarios that we should be discussing with our clients. If you don’t know how to talk to clients about these things, discuss it with your broker/manager. Most likely, there are also classes available that will give you language and thoughts to help facilitate the discussion. NAR Code of Ethics: A Reality Check is a 5 hour class that does just that. You might check with other instructors or your local association for others.
Next (#5) time we’ll discuss disclosing latent defects and re-negotiating commissions after the buyer has made an offer.
leighyork 