November
2004 | Index of all Real Ethics columns
What should we disclose?
The answer to that question is "just about everything of a material nature"
Article 2 of the Code of Ethics states in part, "REALTORS® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or transaction."
I would like to quote to you further from the Code of Ethics and Arbitration Manual, "Any material fact that could affect a reasonable purchaser's decision to purchase or the price that a purchaser might pay, should be disclosed..." "The question that Hearing Panels should consider in determining whether a REALTOR® has exaggerated, misrepresented, or concealed a pertinent fact is whether disclosure of the fact in question could have had an effect on a reasonable purchaser's decision."
Think about this......If you don't disclose a material defect and the seller moves to another state, who is the only person left to sue who is located in Colorado and has perceived "deep pockets"?
If you ever have the question in your mind, "Should I or shouldn't I disclose a material
Fact?"...DISCLOSE. IT!! If you don't disclose a material defect you may make a commission, but is it worth exposing yourself to a lawsuit, an Ethics charge, and an investigation by the Real Estate Commission?
What are the three most important things to a person buying real estate? Location. Location, Location. What are the three most important things to a REALTOR®? DISCLOSE. DISCLOSE. DISCLOSE. Please note this article does not address non-material facts. They may be treated differently.
Each month, the Aurora Association of REALTORSŪ Web site features Real Ethics,
a column by Steve Stazel devoted to explaining Code of
Ethics issues for members. A REALTORŪ since 1974, Stazel is a Professional Standards
instructor and senior Ethics
instructor for the Colorado Association of REALTORSŪ.
If you have an ethical concern or an issue you would like
to see addressed, please call Stazel at (303) 773-3333 or e-mail him at
stazels@msn.com. The comments of this article reflect the understanding and
opinions of the author and do not represent an official expression of policy by the National Association
of REALTORSŪ.
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