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| December 2003 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Ethics Q&AHandling named exclusions; ethics complaints of a general nature. |
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Read the full Code of Ethics updated for 2003. |
Q An owner who previously listed his home with another broker has asked me to take his listing. In terminating the prior listing, the parties executed a Termination of Listing agreement (TAR form 1410) in which the owner agreed to pay the prior broker a fee should he sell the property to a named person in the next two months. How should I proceed? A Standard of practice 16-4 reminds us that REALTORS® should not knowingly obligate an owner to pay more than one commission except with the owners informed consent. Unless the owner is going to agree to pay more than one commission should the named party purchase the home, you should fill in and attach the Named Exclusions Addendum (TAR form 1402) to your listing agreement, if you decide to list this property. This addendum could set forth a clear understanding of your and the owners rights and obligations should the owner sell to the named party during the designated reserved time. Q A buyer client of mine had a contract on a home, and the deal fell apart. My client is not only bitterly disappointed about losing the home, hes also angry at the listing agent. I cant say I blame my client for his attitude. In fact, I think the listing agent was less than professional in a number of instances. He did not return several calls and was borderline rude and condescending to my client during one encounter, making a thinly veiled insult about how he didnt understand how things worked in this business. My client wants to file an ethics complaint against the listing agent. The problem is that I dont see a specific article of the Code of Ethics that the listing agent violated. Can my client bring an ethics complaint against this person based on the fact the listing agent acted in a manner inconsistent with what one should expect from a professional? A The short answer to your question is no. Ethics complaints must cite a specific article (or several articles) that may have been violated. While the point of the Code of Ethics is to foster professionalism among REALTORS®, it is based on the principles contained in the 17 articles and the standards of practice that further define them. If your client or you brought an ethics complaint against the listing agent, you would be asked to identify which article of the Code of Ethics the agent violated. The complaint will be forwarded to the presiding associations grievance committee to determine if the allegations made, if taken as true, might support a violation of the article cited in the complaint. (The grievance committee is not charged with making a determination about whether a violation has actually taken place.) If the grievance committee finds that the allegations, if true, could represent a violation of the article cited in the complaint, the complaint will be forwarded to a hearing panel. Otherwise, the committee will dismiss the complaint. Your client should read the Code of Ethics carefully to determine if the listing agent violated a specific article. If so, a formal ethics complaint is one avenue your client may choose to take.
Send questions about ethics to texasrealtor@texasrealtors.com. Not all questions received can be answered.
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