Thoughts on Article 1

Your client’s interests come first

As a REALTOR^®, your client’s interests come first whether you represent a buyer, seller, landlord, tenant or anyone else in a real estate deal. This is the Queen Mother of all rules in our Code. Your client comes first. It’s not always easy, especially when money and commissions are involved. But if you want to build your business for the long term, you’ll take this to heart.

There is one quick exception to this rule: while your client’s interests come first, you still have a duty to be honest at all times to all people involved in a transaction.

By becoming a REALTOR^®, you’ve agreed to live by the Code.

When you are trying to get a new listing, don’t mislead the owner as to the market value of the property. It’s tempting to promise more than you can deliver, but that’s a long trip on a rough road that will only cost you clients (and money) in the long run.

When offering to represent a buyer or tenant, don’t lead your prospect to believe they will save piles of money or get some other benefit simply by using a REALTOR^®.

Don’t agree to represent both the buyer and seller in a deal unless both sides know your role and agree to it. People don’t always trust our industry; breaking this piece of the code is a good way to confirm every negative thought your customers have ever had about us.

Submit offers and counter-offers to your client objectively and as quickly as possible.

When you are the listing broker, keep taking all offers and counter-offers to your client until the deal is closed or the lease is signed. Unless, of course, your client has asked you to stop in writing.

If your client has a contract on his/her property, tell your client to get legal advice before they accept another offer, unless the second offer is contingent on the original purchase contract or lease falling through. Once your client accepts an offer, you don’t have to continue marketing the property.

Give your client every offer and counter offer until they accept one; you don’t have to keep showing your client’s property once he/she has accepted an offer. If you are representing a buyer/tenant, tell them to speak with an attorney if they question whether a pre-existing contract has been terminated.

If your client gives you confidential information, keep it confidential, even after your professional relationship ends. Don’t ever use anything your client might have told you to put the client at a disadvantage, or to give yourself or a third party an advantage.

There are a few exceptions to the confidentiality rule, all of them extraordinary. You can disclose information if you have the client’s consent or if you are required to by a court order. You can share confidential information if you know your client is about to commit a crime and the information could prevent the crime; or if the information will help defend a REALTOR^® or their employees or associates against accusations of wrongdoing.

Information about serious defects in a property is not considered confidential by the Code.

As a REALTOR^®, it’s your job to manage your client’s property to the best of your ability, particularly looking out for the rights, safety and health of tenants and others on the property.

If you are managing a client’s property, protect it against foreseeable contingencies and losses.

When you take on a new listing, tell your client about your company policies regarding cooperation with other agents and the compensation that you will offer sub-agents, buyer/tenant agents and/or brokers. Make sure they understand that buyer/tenant agents, even if they are compensated by you (the listing agent), still represent the interests of the buyer/tenant. And by all means, tell them if you are acting as a dual agent for any potential buyer/tenants.

If you represent a buyer/tenant, tell your client of your company’s policies regarding cooperation with other agents. Be clear about who is getting paid what. Be especially clear how much your client will have to pay you for your services, and tell them about any offsetting or additional money you might make from other brokers, from the seller or landlord or other parties. Also make sure that your clients understand that the other principals to a transaction and their representatives might not treat information they gain during the transaction as confidential unless it’s required by law, regulation or a confidentiality agreement between the parties.

If you charge a fee to create an appraisal or other valuation of a property, do not make your fee contingent on the value of the property.

If a buyer or cooperating broker asks about existing offers on a property, tell them as long as you have your client’s approval. When you have permission, also tell whether the offers came from the listing licensee, another licensee in your firm or by a cooperating broker.

Next: The truth is a foolproof business tactic