Buying or Selling a Home/Ethics

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Expert: - 5/8/2010


Question
I moved to another state two years ago and rented out my existing home after an unsuccessful attempt to sell it.  I have had the same great renters the entire time.  I put it back on the market in March '10, my renters said they were fine to stay month-to-month until, or if, it sold; I just received notice that my tenants will be leaving at the end of this month because my realtor found them a new home.  I feel like instead of acting in my best interest, my realtor contributed to a very big problem for me.

Answer
Hello Mar - If your agent is a member of the National Association of REALTORS there is an obligatory oath the agent took to uphold the tenets set forth in the NAR Code of Ethics. Articles 1-9 cover an agents "Duties to Clients and Customers"  >>http://www.realtor.org/mempolweb.nsf/pages/code<< Specifically Article 1 states "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. (Amended 1/01)" I would imagine, since the NAR Code of Ethics was the basis for most real estate law, your state's has a law which also indicates this duty of putting your clients needs first. This would be whether your agent solicited their business or if the tenant solicited his/her services. It would have been good business etiquette for the agent to have contacted you first and asked for your permission because if they moved out and your home did not sell it might be interpreted as having not "protected or promoted" your best interest. Your agent could have referred them to another agent in their firm to handle the tenants interests. I recommend talking to the agent's designated broker. Explain your situation and feelings about this behavior and lack of representation in protecting and promoting your best interests. The designated broker is the individual responsible for the supervision of the agents in their employ. If you sustain a loss in rents due to the agents purported violation of Article 1 i recommend seeking a 'real estate' attorney who can counsel you whether the firm 'may' have some liability with specificity to the premature vacancy caused. On the other hand if the tenant indicated they were going to move regardless as to whether you had notified them that you decided to sell, then the agent probably did not violate this Article. Clearly, if your property did sell, they would have needed to have proactively endeavored to find a new residence, right? I would further imagine that if the property did sell you would not have a problem in the tenant using your agent to help them relocate. Is this correct? This issue may be resolved by working closely with your agent (and the broker) to accomplish the task at hand... selling your home. I am not a real estate attorney and therefore this is not to be considered legal advice. This is to be considered real estate information that any experienced REALTOR should be able to provide. If you feel you have been harmed you should seek legal counsel. If you have further questions please don't hesitate to reply. - Todd C Menard

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Todd C. Menard

Expertise

National Association of Realtors Code of Ethics and Professional Standards * Contract Questions: 05/05 Arizona Real Estate Purchase Contract, Exclusive Buyer Broker Contracts, Listing Contracts and associated contract documentation as it relates to boilerplate, covenants, contingencies, procedures and procedures. * ARMLS Arizona Regional Multiple Listing questions * Real Estate Professional Standards and Practices, Ethics, Obligations, Duties * Agency relationships in Arizona, Procurring Cause * Questions typicaly arising during the listing period * Questions typically arising during the escrow period * Questions about working with a real estate agent/REALTOR * Questions Related to New Home Builders

Experience

National Association of REALTORS Board of Director (2011) Arizona Real Estate Salesperson License (1991-1995), Arizona Real Estate Brokers License (1995-Present), Arizona Association of REALTORS Board of Directors (2008-Present), Arizona Association of REALTORS Professional Standards Committee (2008-Present), AAR Certified NAR Code of Ethics and Professional Standards Instructor, Southeast Valley Regional Association of REALTORS President-Elect (2011) Southeast Valley Regional Association of REALTORS Board of Directors (2008, 2009), Southeast Valley Regional Association of REALTORS Grievance Committee Chairperson (1998-2007), Southeast Valley Regional Association of REALTORS Bylaws Committee (2008-Present), Southeast Valley Regional Association of REALTORS Education Committee (2008), Arizona Association of REALTORS Forms Committee - Residential Purchase Contract (2005), Arizona Association of REALTORS Forms Committee - Residential Rental Agreement (2008), Arizona Association of REALTORS Forms Committee - Buyer Broker Agreement (2009), Arizona Association of REALTORS Presidents Advisory Group, Road to Professionalism (2009), Arizona Association of REALTORS GRI Curriculum Review Committee (2009), Arizona Department of Real Estate, Commissioner's Education Advisory Group Sub-Panel B (2010) Arizona Department of Real Estate, Commissioner's Statute and License Review Committee (2007)

Organizations
National Association of REALTORS, Arizona Association of REALTORS, Arizona Real Estate Educators Association (AZREEA), Arizona Regional Multiple Listing System (ARMLS), American Notary Association, Southeast Valley Regional Association of REALTORS (SEVRAR), Southeast Valley Regional Association of REALTORS Women's Council of REALTORS (2010-Present), Phoenix Association of REALTORS (1994-2000, 2005-2009), Scottsdale Association of REALTORS (1994-2000, 2005-2009), Maricopa/Glendale Association of REALTORS (1994-2000, 2005-2009),

Publications
"Real Estate in 2008"- Lifebushido Publishing (Contributory Author), SEVRAR Magazine, Internet Crusade, RealTown ListServe, Blogger.com, Active Rain

Education/Credentials
- AAR Certified Ethics and Professional Standards Instructor, Graduate REALTOR Institute (1993), Certified Negotiation Expert (CNE), Over 100 Hours of annual real estate continuing education, Annual Ethics and Professional Standards Development Workshops as required by the National Association of REALTORS, Approx. 36 hours of NAR Code of Ethics training annually, Numerous IDW, Seminars and Train the Trainer programs, Business Management Degree - 1981

Awards and Honors
2009 REALTOR of the Year Award, Southeast Valley Regional Association of REALTORS (10,000+ Members), Double Platinum Production Award ($45,000,000 Sales Volume)- Keller Williams Realty Int'l (2001), Top 15 Sales Production Keller Williams Realty International (2001), Top 5 Sales Producation Keller Williams Realty Southwest Region (2001), Top Recruiter Award - Keller Williams Realty Int'l, SW Region (2002), Who's Who in U.S. Executive (1983), Who's Who in U.S. Real Estate Professionals (2007)

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