“My daughter is moving from Houston to Dallas. (about a 6 hour drive) I live in Fort Worth, only about an hour from Dallas. I sell real estate in Fort Worth. However, my daughter obviously wants to work with me and I have MLS and keybox access. So, I’m going to sell my daughter a house in Dallas.” Does this even sound like a good idea? Is this what is best for the daughter? Of course not. It’s also a clear violation of Article 11 unless…..the REALTOR explains to the buyer that she doesn’t work in Dallas, know the market, what’s going on with the local economy, etc.
Did you know you can be paid for your knowledge without a listing or buyer representation agreement? You’ll need an agreement that states the parameters of what you’re doing and the fee involved. This is a consulting agreement. Remember, when you are consulting you are not representing the client for a commission. You are simply giving them your opinions based on knowledge and experience. Your information must be given objectively and the fee cannot be based on what your answers are.
Another fun fact from Article 11, dealing with competency, is that you can’t cross disciplines without full disclosure. We discussed playing in another market but what about another kind of transaction. Maybe the same agent in Fort Worth, who sells millions of dollars worth of residential property every month, has more offspring and they want help with a commercial property? If Mom has a broker than has extensive commercial experience and is willing to help, she still has to disclose that she’s not an experienced agent with commercial transactions. She can explain that the broker will support her and be there for questions. If she is in a residential brokerage firm without an experienced commercial broker, the Code of Ethics says she should refer.
We’re just over half way through the Code and there is a recurring theme that I hope you have noticed. With regards to each Article, the underlying question is “What is best for the consumer?” As REALTORS, we have a strong responsibility to the public and to the land. Not only do our livelihoods depend on it but our country and our economy do as well.
Get ready. Next week is Article 12. You probably have no idea what you don’t know. It’s all about advertising.
leighyork 