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REAL ETHICS by Steve Stazel | June
2006 | Index of all Real Ethics columns
A Standard of Practice Review For Longtimers
If you have become a REALTOR® within the past ten years, you do not need to read this article (go make some prospecting calls). If, on the other hand, you have been a REALTOR® for over 10 years and you haven’t kept up with the changes to the Code of Ethics, you had better read on.
I have had two calls recently which were complaints about a selling salesperson claiming to have “sold” the property. The listing brokers both said in essence, “I, as the listing broker, am the only person to be able to claim to have ‘sold’ the property.”
Well, if you haven’t read the Code since 1996, I can see how you might think that way. However, in 1996 the Code was changed. Standard of Practice 12-7 was added. It states in part that “Only REALTORS® who participated in the transaction as the listing broker or cooperating broker (selling broker) may claim to have ‘sold’ the property.”
This means that either the selling or listing broker may state that they have sold the property. Technically, a homeowner could receive brochures from two different brokers, each stating that they “sold” the neighbor’s property. What we need to remember is that in a cooperative sale, there were two brokers who cooperatively made the sale happen.
An interesting part of Standard of Practice 12-7 is the last sentence, which states that “prior to closing, a cooperating broker may post a “sold” sign only with the consent of the listing broker.”
“Now wait a minute,” you may say. “Selling brokers don’t post sold signs. Why would that be in the Code of Ethics?” Well, the Code of Ethics applies to all REALTORS® in the United States. There are some areas of the country where it is common practice, once the property goes under contract, for the listing broker to remove their “for sale” sign and for the selling broker to put in a “sold” sign.
Then the next question that you may ask concerns the propriety of putting up a “sold” sign when the property goes “under contract.” Is that permissible? According to the Code of Ethics, that is permissible. The idea behind this is …does the non-REALTOR® public perceive a difference between “sold,” “under contract,” and “contract pending”? Probably not. Here, you should follow whatever your company policy is. If your company policy is to only use “contract pending” or “under contract,” that is what you should use.
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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