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Agents obligated to be honest
with everyone
Dear Steve:
I'm working with a real estate salesperson
who has been showing me houses in a neighborhood that I've fallen
in love with. She's not a buyer's agent, so I know that she works
for the seller, but is she obligated in any way to be honest with
me? I've put in an offer for one house I really like, and she's telling
me I'd better up my bid substantially because there are multiple competing
bids. I suspect she's lying. Does any law or professional code of
ethics apply here that would let me judge whether she's telling the
truth?
Perennial Skeptic
Dear Perennial:
So you think you've falling victim to one of the oldest
sales ploys in existence, the timeworn "multiple-offers, up-your-ante"
ruse.
There's no way to say for sure if that's happening,
at least from the details you've provided. But to answer your question,
there is indeed a national professional code of ethics for Realtors
that is usually administered by either your state's or metropolitan
area's board or association of Realtors.
Article 1 in the national Realtor Code of Ethics
reads:
"When representing a buyer, seller, landlord,
tenant, or other client as an agent, 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. When serving
a buyer, seller, landlord, tenant or other party in a non-agency
capacity, Realtors remain obligated to treat all parties honestly."
It is entirely possible you are dealing with a generic
real estate agent instead of a Realtor. To use the Realtor designation
and be obligated to the association's relatively strict, 17-point
Code of Ethics, a real estate licensee must belong to the National
Association of Realtors.
But being a non-Realtor doesn't relieve an agent
from following the state law, which usually runs congruous with
the national Realtor code on most major issues, in most states, and there's no guarantee that ll Realtors follow the code.
Certainly, you can contact your local or state board
of Realtors for information on filing a Code of Ethics complaint
against a Realtor, if that's indeed who you're dealing with. While
boards and associations can determine if an ethics breach has occurred,
they can't legally conclude whether any laws or state regulations
have been broken. Only the courts or state real estate licensing
authority can do that, in an action against either a Realtor or
generic agent.
However, a violation usually has to be particularly
egregious and costly to be pursued. In your case, it would likely
be a waste of time.
Of course, you could first talk to the seller's agent
and express your concerns. But because you are not paying her to
represent you, your bargaining and legal positions are greatly diminished,
I'm sorry to say.
Consider dropping the agent (I assume you have no
formal representation agreement with her) and enlisting your own
reputable buyer's agent to sort through the suspected multiple-offers
gambit and possibly find you other opportunities in your dream neighborhood.
It will cost you, but at least your agent will be your agent and
you'll have more confidence that everything is on the up and up.
Good luck.
-- Posted: April 10, 2004
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