Realtors®, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, disclose the existence of offers on the property. Where disclosure is authorized, Realtors® shall also disclose whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker. (Adopted 1/03, Amended 1/06)
In my blog How NOT to Negotiate an offer....Unbelievable!
I wrote about Suzy and Leslie and an offer that was never presented to the seller.
It was a long story and rather than recap it here I'd rather just pick up where I left off....so if your' interested hop over and read Poor Suzy's story...all Unfortunately true.
Anyways what is bugging me is that Leslie is now attempting to use our code as a shield ...She is interpreting the words "with the sellers’ approval, disclose the existence of offers" claiming that it would cover her as she never got the sellers approval....Even though she never bothered to tell the Sellers that she had another offer. Never presented a higher better offer to her clients!!!
I say we're talking Apples and Oranges here...and Leslie is grasping at some mighty short straws.
Article 1 is referencing when someone wants to show the property and offers are already in...not when you have an offer on the table and are asking if there are any other offers in and could be in a competing offer situation!
It made me mad and I wonder just how many other agents use that as a shield as well.
When someone a buyer or an agent does inquire prior to showing asking if there are any offers in and your seller has NOT authorized that disclosure...do you BOLD face lie and say No or do you say something like" I'm sorry I am not authorized to disclose that information"?
Article 1 Also says that REALTORS pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS of their obligation to treat all parties honestly.
Am I all wet here..... or is Leslie desperately trying to defend herself by saying the code made her do it????
How would you all answer that question If someone asked you if there were any other offers in on your listing?
If you haven't read Leigh Browns Blog on Ethics today...you should it's a short read but very powerful...
Read the 2007 REALTOR Code of Ethics here .
 |
|
|
We talk about everything you need to know about buying or selling real estate in Southern NH. and training to be a great real estate agent! Call 603-548-7728 for additional information.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2008 ActiveRain Corp. All Rights Reserved
I don't think it can make you a liar if you're following the code...because one of your fiduciary responsibilities to a seller is to get them multiple offers if possible to generate the best price possible-which isn't possible if you don't tell other agents what's going on...heck, i think it's GREAT if i have multiple offers, i call all showing agents and tell them to get other offers in if they're working on one so that i'm doing the best i can for the seller. Was Leslie's offer in-house? that's usually when the shenanigans creep up.
Monika, I rarely disclose the existance of offers or multiple offers. Especially to a Realtor just looking for showing instructions. I answer the question as follows:
"As we speak, this property is still active." I say nothing more or nothing less. It's the truth and I am not being evasive. How did I do?
Leigh and Bryant
I agree I love multiple offers and if handled correctly it's a real plus to the seller. The problem here is that Leslie had multiple offers and never even told her Seller and lied about it to the Co-broker as well.
Bryant...If my sellers tells me not to disclose offers when someone is inquiring about showing instruction,..then your line is perfect.
Leigh..Not 100% sure if Leslie's offer was in-house but we think so.
Monika, yes, it's up to the Sellers to decide if multiples should be announced; however, your situation also includes her not preesenting your offer to the Sellers; this is a violation, in my mind, plain and simple; she can try to find ways to cover her, uh, tush, on some points, but she can't wiggle out of that one.
Now I have never heard of a bank that wants it kept quiet that there are multiple offers but I suppose there is always a first.
Monika, I always discuss it with my sellers first. Leslie unfortunately was taking matters into her own hands. Bad Realtior:)
Carole... Yup..she is trying to cover her tush big time. I think honesty goes a long way...
If I had a situation where for example Broker Bryant faxed me an offer which I had not yet presented to my seller.
If My seller did not authorize me to disclose the fact that I had one coming in...AND then you called to set up an appointment, asked me if I had any offers in or coming in. I would respond by saying that My seller has not authorized me to disclose that information to you... This way I would still be honest.
That is very different than IF I had my own offer and you brought me a better offer and I decided not to tell the seller about your offer or tell you even after being asked that there were no other offers being presented. She is trying to wiggle out of it all by blaming the code...crazy huh?
Bryant....A very bad REALTOR indeed! She definitely took it all in her own hands.
Monika - I'd say she's butting her head against a brick wall thinking the Code is going to protect her on this. It irks the heck out of me when agents conduct themselves in less than professional ways and then try to twist the Code to their own liking.
Ann
For multiple offers on a property, the agent must disclose to all subsequent offers that an offer has ben received. It is up to the agent of the additional offer to respond as to their principal's best and final offer.
I'm always straight up - I say, there are offers, but none have been accepted yet - the property is still available. In this crazy market where anything can happen, no one cares if there are offers. I do like Bryant's response though
... dealing honestly and fairly... I will not tell a lie and would just say that the property in question is active or resort to the "not being able to disclose" phrase. I also discuss disclosure of potential other offers with my sellers at time of listing and again when an offer has been received on how to respond to such inquiries.
Ann....She is running scared and grasping at any thing she can reach.
She knows she did wrong!
Moni
David...The agent never even told her own seller...never mind the co-broker about the other offer. Can you imagine such incompetence??
Ines ... Straight up is the best way IMHO...I feel bad for her client the seller who were clueless about the better offer.
Silvia ... That is how I do it as well discuss it at time of listing...actually I give them a copy of NAR's multiple offer guide..it says it much better than I could!
In Hawaii she would have broken the law. Our law says all offers have to be presented immediately.
Hi Randy...She is in violation of our license law as well as we have an obligation to present all offers...as well as being unethical! But she thinks the code protects her actions...Yikes!
I know I have created somewhat of a bidding war on listings I've had by letting other agents know there were other offers being considered. If I know there are multiple offers coming in, I give a deadline day and time to be fair to everyone but it has to be within the 24 hour period. Then I review all offers with the Seller and that's it. There have been times when all but one buyer drops out of the race. I think there are always methods that can be utilized by agents that allows us to be fair to everyone without compromising our fiduciary responsibility to our Sellers.
Lisa
Lisa...Sounds to me that you're doing every thing the right way..key here is reviewing the offers... all of them..not just your own offer with your seller. I agree you can be fair while not compromising your fiduciary obligations.
Monika
Interesting, thoughtful post, Monika. I think our agent friend Leslie is trying a CMA (cover my ___) . Seems to me she clearly goofed up and now she is looking for the justification.
As to your question about offers, one reading of the code would say that if there are no offers and you are asked, you can say there are none - no existence to disclose so no approval needed. The more difficult situation is when there ARE offers and you are asked - a different issue entirely. In keeping with the code, you should have approval to disclose an offer's existence. No approval, no disclousre. But, following this logic, if you say you don't have permission...aren't you, in effect, saying there ARE offers?
I always ask my sellers when they have gotten an offer if I may tell others when asked that an offer is in process. I don't want to be in a situation where my choice is to lie, or say "I can't disclose that info." Am I off base here?
Jeff
Hi Jeff
Thanks for reading.
If you say you don't have the authority to disclose...that could mean that there are offers or it could also mean there are no offers...anyones guess as to that.... but the seller in either case does not want it disclosed.
I sure hate to Ass u me anything. Seller needs to authorize the disclosure no matter what. In NH we ask that question at time of listing and it is on our listing contract...seller needs to decide...disclose or not and check off the appropriate box.
I love your CMA (cover my ___)...I think that is what Leslie is doing!!!!
Thanks
Thanks Mokina for your comment on my ranting over NAR. I've got my pants out of that wad now. Having read your piece, however, I still don't see what makes a Realtor different. I think my upbringing and sense of personal integrity are so much more important than wether or not I choose to join (or am permitted to join) a trade organisation or not.
Hi Marcus...Thanks for visiting.
I've always said it's not the R that matters but the person ...that said I do believe that the REALTOR association works to police un ethical behavior...there is a system in place...which may not always work but it's there. I've seen REALTORS lose their membership due to Ethics...there are a lot of bad apples out there.
I know if a non-REALTOR does something unethical to me but it is not unlawful...I have to grin and bear it ..If a REALTOR does it... I have recourse. I'd rather work with a REALTOR than and Non-REALTOR Because they have to abide by the same code of ethics as I do.
NAR is the largest trade organization in the Nation...I think that says something. Personally I like being able to deduct my mortgage interest..I wish the health insurance bill would pass and appreciate NAR fighting that battle for me. Overall for me...I see a lot of good in NAR and I'm not stupid...it is not perfect.
So Marcus..if your main point is that the person not R matters I agree but the rest of your thoughts about NAR or REALTORS demonizing sales associates who are not REALTORS is off base.
Thanks for commenting Marcus.
Happy New Year.