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I'm in the process of buying a property and working with a realtor. My realtor is great, but was out of town when a property came on the market I wanted to see -- he gave me the go ahead to contact the listing agent to view the property. The listing agent proceeded to tell me that they would only show me the property if I agreed to use them should I decide to buy it. This did not seem fair to me, so I had a realtor friend come over from Raleigh to Durham to get me in to see it -- so that I could include my agent should I decide to buy, which I did (he's worked with me for weeks and deserves a commission). When my agent got to putting the offer together, we discovered that the seller's agent was also the owner, which was never disclosed in the listing and we were unaware of until we saw the name on the offer agreement. My understanding is that this non-disclosure is not only unethical but possibly illegal and/or against standards of practice in this state. Is this correct? I ask because, overall, this particular agent has been very unprofessional all around, and I am interested in taking some action if this is possible (i.e., reporting them to the real estate board, etc).
You are asking some really tough questions that could massively effect a person's livelihood, so you should make sure you get your facts straight about the rules and the laws.
1) Is what they did illegal? For that you really should chat with a real estate specializing lawyer.
Getting opinions and 'horror-stories' from an open forum is not likely to answer this.
2) Is what they did unethical? Are they a member of any organization that has a Code of Ethics they may have violated?
Article 4: REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative.
Standard of Practice 4-1: For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS® prior to the signing of any contract.
I was/am just looking for basic opinions on this issue since I have received conflicting information. I do not intend to sue this individual, but they have been both rude and unprofessional in multiple ways, AND if they are, in actuality, in violation of laws or codes of ethics, I feel they should be reported. Before I contact the agent's firm and board of realtors, I was looking to see whether it was even worthwhile (i.e., would it even make a difference if, in fact, rules or laws were broken). If someone is worried about their reputation or livelihood they should not act in ethically questionable ways. In most states, sellers representing their own property are required to list themselves as "agent/owner" or "agent/broker", but as I am new to NC I am unsure of the rules here. It's a simple question. I'm not looking to ruin someone's life.
Quote:
Originally Posted by Ed_RDNC
You are asking some really tough questions that could massively effect a person's livelihood, so you should make sure you get your facts straight about the rules and the laws.
1) Is what they did illegal? For that you really should chat with a real estate specializing lawyer.
Getting opinions and 'horror-stories' from an open forum is not likely to answer this.
2) Is what they did unethical? Are they a member of any organization that has a Code of Ethics they may have violated?
Article 4: REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative.
Standard of Practice 4-1: For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS® prior to the signing of any contract.
I don't have a real estate attorney per se and am waiting to hear back from the commission -- simply wanted to tap collective knowledge. Not looking for official legal advice.
Quote:
Originally Posted by Bpobill
Consult your real estate attorney. Or call the commission and ask them.
You are asking some really tough questions that could massively effect a person's livelihood, so you should make sure you get your facts straight about the rules and the laws.
1) Is what they did illegal? For that you really should chat with a real estate specializing lawyer.
Getting opinions and 'horror-stories' from an open forum is not likely to answer this.
2) Is what they did unethical? Are they a member of any organization that has a Code of Ethics they may have violated?
Article 4: REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative.
Standard of Practice 4-1: For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS® prior to the signing of any contract.
According to this document, if the contract has been signed by the seller/owner without disclosing the fact by writing before, then he or she is at fault. If no paper has been signed by the owner/seller then there is no fault according to the text. However, it the seller wrote the contract and asked you to sign it before he/she signed it, this is contentious and only a judge will figure out if at fault or not.
My advice: when you buy a real estate property the seller knows way more about the value of the property than you and your agent would ever known for a while. So, if the seller is a not somebody you can trust why not looking for another home and pass on this one. I am sure they are ton of houses for sales that match your criteria.
Just move on to the next house, do not loose your time with such kind of people.
I'm in the process of buying a property and working with a realtor. My realtor is great, but was out of town when a property came on the market I wanted to see -- he gave me the go ahead to contact the listing agent to view the property. The listing agent proceeded to tell me that they would only show me the property if I agreed to use them should I decide to buy it. This did not seem fair to me, so I had a realtor friend come over from Raleigh to Durham to get me in to see it -- so that I could include my agent should I decide to buy, which I did (he's worked with me for weeks and deserves a commission). When my agent got to putting the offer together, we discovered that the seller's agent was also the owner, which was never disclosed in the listing and we were unaware of until we saw the name on the offer agreement. My understanding is that this non-disclosure is not only unethical but possibly illegal and/or against standards of practice in this state. Is this correct? I ask because, overall, this particular agent has been very unprofessional all around, and I am interested in taking some action if this is possible (i.e., reporting them to the real estate board, etc).
Thanks for any help!
There are significant red flags here.
I would leave your agent and friend out of it, double check your facts, and call the Commission.
When selling a property they own, a licensed agent cannot represent a buyer. There cannot possibly be any legally-required confidentiality observed by the buyer's agent, or in dual agency, when one of the principals is also the agent.
"Brokers As Parties to Transactions. There is an inherent conflict of interest presented by a broker representing the very party against whom the broker, as an interested party, is negotiating. Paragraph (o) of Rule A.0104 prohibits a broker who is selling property in which the broker has an ownership interest from representing a buyer of the property."
Exactly what I was thinking! Thanks for the input.
Quote:
Originally Posted by MikeJaquish
There are significant red flags here.
I would leave your agent and friend out of it, double check your facts, and call the Commission.
When selling a property they own, a licensed agent cannot represent a buyer. There cannot possibly be any legally-required confidentiality observed by the buyer's agent, or in dual agency, when one of the principals is also the agent.
"Brokers As Parties to Transactions. There is an inherent conflict of interest presented by a broker representing the very party against whom the broker, as an interested party, is negotiating. Paragraph (o) of Rule A.0104 prohibits a broker who is selling property in which the broker has an ownership interest from representing a buyer of the property."
Non-disclosure of ownership is not acceptable.
An aroma of a massive fishkill, last weekend.
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