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HomeGreed and Stupidity Anyone?

Greed and Stupidity Anyone?

Greed and Stupidity anyone?

That's pretty easy to serve up....Did you know that the number one reason Why agents get sued is as simple as Greed and Stupidity??

Did you know that the Fiduciary Duty of Consumer Care..or lack of consumer care can pretty well be defined by greed and stupidity.

Consumer Care...what does that really mean? Pretty much anything and everything falls under the vast Umbrella of Consumer Care. Unfortunately it is one of the hardest to define..because it's reach is so broad and left open to interpretation.


Lets look at the the Full Scope of Fiduciary Duties an agent owes to their client, be it a seller client or a buyer client. Remember that Fiduciary duty is the absolute highest standard of care imposed by law that one person can do unto another. There is no higher standard...none. Technically that means that the needs of your client comes before the needs of your family. Scary huh? A fiduciary must be extremely loyal and they must not put their personal interests before the interest of their clients. I think many agents forget that or don't really grasp the significance of it and how their day to day actions may violate a fiduciary obligation...especially Consumer Care.

The agent is bound by the Fiduciary Duties of:


Obedience...Means following all Lawful instruction from clients. In other words if your client tells you not to disclose the fact that the basement floods in the spring or that the furnace doesn't work or asks you to discriminate when showing the property...you should RUN not walk away.

Loyalty...Your clients needs comes before your needs or commission...after all client comes before commission even in the dictionary.

Disclosure...Full disclosure of anything that could effect the transaction and the client...such as buyers financing..credit issues, home inspections...market conditions/values.

Confidentiality...Forever imagine that! To the grave in most states...In Louisiana it goes beyond the grave, kind of scary if you ask me..anyone watch the movie The Vampire Lestat??

Accounting...Safe guarding not only all monies(deposits) but the property as well...you are the keeper of the keys..remember that.

Reasonable Care and Diligence....Is pretty much anything a judge thinks is "reasonable care given from a competent professional" and usually the key question the judge asks is "is it reasonable for a consumer to expect this level of care from a competent real estate professional" ! If the answer is yes and you didn't provide it...you might as well say goodbye.

I learned to memorize my fiduciary duties it this way...OLD CAR

O...Obedience

L...Loyalty

D ..Disclosure

C...Confidentiality

A...Accounting

R...Reasonable Care and Diligence

Reasonable Care..

Is it Reasonable Care to not put photos of your clients house in the MLS? Unless maybe if it's a real pit.

Is it Reasonable Care to show snow on the roof in July...if you're not marketing a house in the mountains?

Is it Reasonable Care to not bother to measure the room sizes?

Or to fill out the remarks section of the MLS sheet...I mean if you can't find anything nice to say about your own listing?? Why should I take the time to show it?

Is it Reasonable Care not to verify data? Not to educate your buyer client about contract confidentiality.

Is it Reasonable Care to fax a P&S contract and not make sure the other party even receives it?

Remember this test question and always keep it in mind... "Would a reasonably efficient agent/broker in a like situation use more care to protect the best interest of their client?

How you answer that question will guide your actions and hopefully keep you walking on the high side of the bar.

Jay and Monika McGillicuddy

Monika McGillicuddy

Serving Southern New Hampshire and Rockingham County

Monika McGillicuddy Real Estate Training Website

NH Real Estate Blogs

Prudential Verani Realty

Hampstead NH Real Estate

603-548-7728

Posted Friday Dec 15
(12/15/06 10:00PM) — Mariana Wagner ~ Colorado Springs REALTOR®

Monika- This is excellent! You put it forth in such an easy to understand way. I wish I could take one of your classes!

(12/15/06 10:25PM) — Rick & Ines - Miami Shores Real Estate

That's what I'm talking about!  Consumer Care 101 - simple and clear!  Thanks Monika....and I'm sorry for instigating the photo thing with Jay, but I sure got a laugh from your responses.

(12/16/06 12:16AM) — Steve Hewson GRI, MRE, SRS

Monika,  "Reasonable Care" seems so basic and simple but yet it is lacking in many situations.  "Exceptional Care" is what excites me!  In my opinion it's what separates the great from the good.

(12/16/06 12:19AM) — Margaret Rome- Baltimore, Md.-HomeRome.com

"Would a reasonably efficient agent/broker in a like situation use more care to protect the best interest of their client?  What a great question!

OLD CAR, thanks for making it easy to remember! Really good use of photos. The mouse trap, especially!

www.HomeRome.com

Baltimore,Md

(12/16/06 05:36AM) — "The Lovely Wife"...Broker Bryant's Wife...

'The Lovely Monika'

Hey. I like it.

Great way to teach it OLDCAR.

TLW "The Lovely Wife"...Grouped In Ethics I Really Hope New Realtors See This...ROAR!

(12/16/06 07:30AM) — Portsmouth NH Real Estate ~ Ann Cummings

Monika - EXCELLENT post!  Great graphics and you laid this all out in way that's easy to read and easy to get!  Now, if only those who really should be reading it would .......  ah, if only......

Great post!

Ann

(12/16/06 08:04AM) — Monika McGillicuddy~REALTOR®~ N.H. Real Estate Broker & Trainer

Mariana...Thank you so much for the kind words!  I'd love to come out there...

Ines...LOL..Just so you know I really did take that picture!  You should see the original..we had it blown up  years ago.:)   Thanks for reading my post Ines...I thought it would be boring.

 

(12/16/06 08:11AM) — Monika McGillicuddy~REALTOR®~ N.H. Real Estate Broker & Trainer

Steve...Exceptional Care also excites me and when I teach my class on Fiduciary duties  and Agency in the Trenches....I stress Exceptional care rather than Reasonable care.  Thankfully...for agents, the courts do not require exceptional care...they're satisfied with reasonable care.

(12/16/06 08:21AM) — Monika McGillicuddy~REALTOR®~ N.H. Real Estate Broker & Trainer

Thanks Margaret  I think, that question is perfect to ask when trying to assess your own behavior. I teach new agents to reflect on it when conducting their business ..that and the Golden Rule.

TLW...OLDCAR...Was the only way for me to learn it. I think everyone should be able to rattle off their fiduciary duties without reading it somewhere.

Ann...Thanks...people roll their eyes at the thought of taking a class on  fiduciary duties..yet clearly many would benefit from it.


(12/16/06 11:48AM) — Stefan Scholl - Northern Michigan Real Estate

Monika,

Thanks for sharing.  Wouldn't it be nice if all licensees were familiar with an adhered to their fiduciary duties?  I just got my REBAC newsletter and highlighted was the case of a buyer's agent in Ohio who, although provided with a survey and legal description by the listing agent, neglected to inform his buyer client that only one of two lots for sale was included in the transaction.  The buyer thought he was buying both lots.  Talk about breach of reasonable care. . .  

(12/16/06 12:06PM) — Monika McGillicuddy~REALTOR®~ N.H. Real Estate Broker & Trainer

Stefan...I read that summery as well. Talk about problems...we have a lot of "fake" buyer agents up here...they call themselves buyer agents, have all the appropriate paper work signed but that is it...they have no clue what their jobs really are.  Pretty sad.

(12/16/06 01:01PM) — Randy L. Prothero - Hawaii REALTOR®

Greed and stupidity are great attributes that lead to getting sued. I often run into arrogance and laziness.  Many times they are combined with the first two.

(12/16/06 02:22PM) — Michael Mackey (R) ABR, CRS, GRI

Monica, I learn something everytime I read one of your posts! Thanks for OLDCAR! and of course, the whole post!

(12/16/06 02:56PM) — Monika McGillicuddy~REALTOR®~ N.H. Real Estate Broker & Trainer

Hi Randy...Arrogance and laziness...absolutely true. 

 

Michael...Thank so much for reading my blog and your very kind words!!!  I wish I could remember who taught me oldcar...it sure made it easy for me and it is something I've used in my training classes ever since,

 

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