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REAL ETHICS by Steve Stazel | February 2008 | Index of all Real Ethics columns
Who decides what is in the principal’s best interest?
Should the broker decide what is best for the principal or should the principal decide what is best for the principal?
I think the answer is obvious. Too often in our business, the agent makes decisions that the principal should be allowed to make.
Standard of Practice 1-15 illustrates one of these situations. it states in part that “REALTORS®, in response to inquiries from buyers or cooperating brokers, shall, with the sellers’ approval, divulge the existence of offers on the property.”
Many REALTORS® always inform competing brokers of the existence of the other offer (it seems to be a courtesy to the selling brokers and it might result in a higher offer). SOP 1-15, however, is stating that this decision should be made by the principal and not the agent.
It is possible that the seller does not want the existence of a current offer shared with anyone. The seller might say, “Five years ago we put an offer in on a house. When the listing broker told us we had competition, we withdrew our offer. I think other people might do the same, so I don’t want the existence of one broker’s offer divulged to another broker.”
Shouldn’t that decision be the principal’s? The principal may also say, “Yes, tell all competing brokers. I might get a higher offer.”
Telling your seller what you think is certainly an option. If you think the seller is making a wrong decision, you can certainly voice your opinion. But after all is said and done, shouldn’t this decision (either way) be the seller’s?
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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