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Professionalism: Play Nice, Play Fair, Play by the Rules

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Slide 1

Play Nice, Play Fair, Play by the Rules Insights By Debbie Reynolds

Professionalism:

Play Nice, Play Fair,

Play by the Rules

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Slide 2


Learning Objectives

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1. Discover what TREC tells us about ethics

2. Practice MLS rules and Clear Cooperation

policies

3. Apply our NAR Code of Ethics to real

situations

4. List ways we can increase professionalism in

our market

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Slide 3


Rules of Monopoly1

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Rules of Real Estate

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When did you begin?

Do the rules change? Which rules?

How did it affect the outcome of the

transaction, your feelings about the result?

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Slide 5


Where do the Rules of Real

Estate come from?

Tennessee Real Estate Commission

Realtracs

NAR Code of Ethics

SentriLock

ShowingTime Services

Our companies/brokers

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Slide 6


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Slide 7


Your Role

Where Do You Fit In?

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Sometimes It’s Confusing

Oversee, Conduct, Lead, Orchestrate,

Facilitate, Represent

You are not a Party of the Transaction.

Your Role

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Slide 9


Players in the Real Estate Transaction

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Buyer and Seller Agents/ Brokers/Managers

Developers/ HOAs and Property Managers

Codes & Governmental Authorities/ Utility Companies

Builders/ Warranty Companies/ Surveyors/Engineers

Buyers & Sellers

Team members/Transaction Coordinators

Home Stagers/Photographers

Title Companies/Closers/Attorneys

Home Inspectors/ Termite/Misc. Inspectors/Repairmen

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Slide 10


What Problems Do You See in the Real

Estate Industry?

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What Are You Seeing in Clarksville’s Market?

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Slide 11


Wave your magic wand…

What rule would you put

into effect or take away?

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1. A black eye on the whole industry

2. Hurts the public and creates distrust of agents

3. Possible Discipline of More Education

4. Levying of Fines/Civil Penalties

5. Possible Suspension/Revocation

6. Complaints are made public, your peers,

friends, customers and clients may see them

TREC LawsFailing to Follow TREC Rules…

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Slide 13


Did You Know TREC Says This?

Owed to All Parties of Transaction

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Who are Parties?

A Party means any person or persons seeking to

obtain or divest an interest in real estate or a

business opportunity as a buyer, seller, landlord,

tenant, option grantee, option grantor.

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Owed to All Parties of Transaction

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Skill:Disclosure:

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Did You Know TREC Says This?Owed to All Parties of Transaction

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Confidentiality:

Personal Interest:

Turn in Trust Funds Promptly:

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Slide 16



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Conduct your business with

Honesty and Good Faith

Use good moral character, integrity,

truthfulness, fairness, sincerity.

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17

If requested provide timely and accurate info on

market conditions pertaining to the transaction but

only if it’s available through public sources.

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Slide 18

Play Nice, Play Fair, Play by the Rules Insights By Debbie Reynolds 18

1. Obedience-

2. Loyalty to client-

3. Unless waived in writing, you must

Did You Know TREC Says This?What’s Owed to Clients

The ALL Parties Duties

Plus

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• Verbal disclosure required if you represent another

client in the transaction, otherwise disclose you are a

facilitator or non/agent.

• With unrepresented parties disclose in writing prior

to writing the listing agreement or purchase agreement.

• Upon initial contact with another licensee in the

transaction, disclose your agency relationship and if your

agency changes, you must give notify the other licensee.

Additional Written Disclosure

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Slide 20



20

You Can’t Counsel/Induce Someone to Break

an Agency for Your Own Benefit

Don’t interfere. Defer.

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Slide 21



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If you are the Buyer• Disclose you are intending to buy a

property listed by you/your firm to the

customer/client.

• Disclose to any prospective purchaser

(client or customer) that you worked with

or represented in this transaction.

• Disclose your interest to any other

prospective purchasers who may want to

submit offers to buy on the same property

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Slide 22



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Personal Interest If You Are the Seller

Make your position known and clear in

all advertising if you are the licensee and

the owner of the property or if you have

an interest in the property.

Always identify yourself as a licensee when

buying or selling properties for yourself or

immediate family.

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Slide 23



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Advertising Rules• Full company name and phone # listed at TREC

• If using a licensee’s name, use name registered with

TREC. Font size cannot be larger than company’s

name.

• No posting signs on property without written

permission of the owner/owner’s agent.

• No advertising another agent’s listing without

written permission of the listing agent or listing

broker.

• State of licensure, also one click away rule applies

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Slide 24



Earnest or Trust Money

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Name and address of holder

must be disclosed.

Timely deposit of the earnest

money into a separate account.

No postdated checks without

agreement of parties in writing

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Slide 25



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Promptly tender every

written offer until a

contract is signed by all

parties, to include any

acceptance or

counteroffers.

If an offer is rejected, agent

shall request the seller to

note the rejection and

return to the offeror or his

agent.

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Slide 26



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Advise seller even if you’re

dealing with a FSBO, that if the

seller has lived in the property

within the last 3 years, the seller

must fill out a property

condition disclosure and other

disclosures as determined by

TREC or the legislature.

Seller is required at or before

closing to disclose changes to

property or state it is

substantially the same as when

the disclosure was provided.

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Slide 27


What should you do if you

know a licensee violated a

TREC Law?

https://www.tn.gov/commerce/regboards/trec

/consumer-resources/file-a-complaint.html

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Slide 28


Realtracs/MLS Rules Voluntary or Mandatory?

Confusing or Clear?

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How Much Do You Know?

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MLS Rules

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1. Coming Soon- Love it or Hate It?

Coming Soon/Hold Status. No showings at all!

• None from listing agent

• None from listing company

• None from listing agent’s real estate buddies

• None from seller showing it

This could have Fair Housing consequences as well

as MLS and NAR COE ramifications.

If the seller is ready to show, move to Active!

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Slide 30


MLS Rules

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What does Clear Cooperation Policy Mean?

• You may verbally talk about listings not yet listed

that are coming on the market.

• If the listing agreement is signed (and it’s not an

MLS exempt listing), it must be added to MLS

within 48 hours.

What makes an exempt listing:

The seller signs a Seller’s Waiver of Cooperation and Public

Marketing Form (form submitted to MLS within 48 hours)

The listing is not in MLS. There will be No Public Marketing.

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Slide 31


MLS Rules

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In Coming Soon Status

Triggers to go Active: An exempt listing is marketed

(flyers, sign, social media, email blasts, showings, etc.)

the listing must be added to the MLS within one

business day or 48 hours whichever is less.

The purpose of Clear Cooperation is to reinforce

cooperation among competing brokers participating

in MLS for the benefit of sellers and buyers.

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MLS Rules

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2. Listing Type-

If you are owner or have ownership interest, use Owner-

Agent under Special Listing Conditions when inputting

listing (this will be your Personal Interest declaration in

this advertising)

3. Private Remarks-

Put your website, email, other phone numbers, co-list

agents to contact or other instructions to agents here.

Do not put in Public Remarks.

4. To-Be-Built-

Must have intended plan or otherwise it is a lot. MLS

now requires at least one photo.

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Slide 33


5. Photos-• Minimum of one photo with no overlays, text,

logos and any For Sale sign incidental to property

• No changing actual property characteristics

• Virtually staged existing homes to have the actual

photos posted immediately before or after

virtually staged photos.

6. Presale-Entered in MLS prior to framing completion

as Under Contract Showing/or Not Showing.

MLS Rules

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Slide 34


MLS Rules

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7. Status Changes-• Compensation/listing term changes- Within 48

hours

• On Listings with Binding Sale Agreements- Within

48 hours must be changed to one of these

statuses: Under Contract- Showing or Under

Contract- Not Showing

• Closed Listings must be changed within 72 hrs.

8. Expiration of Listing-If it expires without extending, it must be relisted as a

new listing (new paperwork).

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Slide 35


MLS Rules

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9. Presentation of Offers-• Offers must be presented as soon as possible

• All written offers presented until closing unless

seller waives this in writing.

10. Refusal to Sell-If seller refuses to accept a written offer according

to the terms of the listing, Realtracs is to be

immediately notified.

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Slide 36


MLS Rules

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12. Non-members-We are encouraged to cooperate with agents not a

member of our MLS.

3. Signs-• Only listing agent/company’s For Sale sign posted

• Only listing agent/company’s Sold sign can be

posted unless permission granted by listing broker

14. Offers of Compensation- Backbone of MLS

Sharing of commission is unconditional MLS requirement

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Slide 37


MLS Rules

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15. Change in Compensation-• If it deviates from what is posted in MLS, listing agent

must notify cooperating broker in writing prior to

offer submission.

16. Dual or Variable Commissions- Using “V”• Check the Dual Commission block if there is an

agreement with seller to adjust/discount the

commission if you/agent from your company brings

buyer. You must be disclose to other agents.

• If you represent the buyer/tenant you must disclose

to client before offer is made.

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Slide 38


MLS Rules

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17. Personal Interest on Listings-• Use Special Listing Conditions section

Owner/Agent

18. System Security-• Passwords are private, do not share with an

assistant or another agent

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MLS Rules

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21. SentriLock- Use the App• If you have a keycard, do not loan to anyone or

give your passcode to anyone to use the system.

If you lose your card, notify CAR within 3 days.

• Follow all additional security procedures specified

by the MLS when showing properties

What should you do if you see

someone violating an MLS Rule?

Click the Report This Listing Button

under the More tab on the listing

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Slide 40


REALTOR® Code of Ethics

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Preamble: Aspirational Purposes

Section 1: Duties to Clients & Customers

Section 2: Duties to Public

Section 3: Duties to REALTORS®

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Slide 41


REALTOR® Code of Ethics

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Preamble: Aspirational Purposes• Competency, fairness and high integrity

• Encouraged to cooperate

• Urge client representation

• Be fair/take no unfair advantage

• No unsolicited comments about peers.

• If you must comment, make it objective.

Principles of the Golden Rule apply.

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Slide 42


Section 1 COE: Duties to Clients and Customers

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Article 1:• Promote your clients interest, don’t mislead a

potential client as to the value of a property or

your services.

• Dual Agency must be disclosed, agreed in writing

• Present all offers/counteroffers until closing

unless waived in writing by seller

• Protect confidentiality with clients

• You must have seller’s permission to disclose other

offers and the source of the offer (you, your

company or another broker)

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Slide 43


Section 1 COE: Duties to Clients and Customers

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Article 2:

• Avoid exaggeration, misrepresentation or concealment

of pertinent facts.

Article 3:

• Cooperate with other brokers (unless not in client’s

interest) Cooperation doesn’t assume commission.

• Disclose if there is a variable commission structure.

• No unilateral altering of co-op commission paid after

offer has been submitted.

• Disclose if accepted offers/any contingencies to brokers

• Not misrepresent the availability to other brokers.

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Slide 44


Section 1 COE:

Duties to Clients and Customers

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Article 4:• Disclose personal interest of yourself, immediate

family or any personal ownership interest to buyers

and sellers

Article 5:• Must disclose if you have a present or

contemplated interest in a property before

providing professional services

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Section 1 COE:


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Article 6:• Not accept fee on any expenditure for client

without their knowledge and consent

• Must notify clients and customers if you are

receiving a fee for the referral of services

• Must disclose any personal interest in an affiliated

service you recommend to your client or customer

(any business connection, family connection, fee or

benefit)

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Slide 46


Section 1 COE:


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Article 7:• Cannot accept compensation from more than one

party in a transaction without written consent of

both clients

Article 8:• REALTORS® must maintain a separate account for

holding client’s monies

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Slide 47


Section 1 COE:


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Article 9:

• Agreements to be clear in understandable

language

• Give a copy at signing to all signing parties

• Use written extensions/amendments

• When using electronic signings for agreements,

make reasonable effort to disclose the terms

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Slide 48


Section 2 COE:

Duties to the Public

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Article 10:• Practice and follow all Fair Housing Laws plus sexual

orientation or gender identity classes added by NAR

• This applies to employees of the broker, independent

contractors providing real estate services and the

administration/clerical support staff

• Not to use harassing speech, hate speech, epithets or

slurs of Fair Housing and NAR protected classes.

Article 11:• Be competent in your field of specialty

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Slide 49


Section 2 COE:


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Article 12:• Be honest and truthful in all real estate

communications including social, websites, etc.

• Present a true picture in advertising, marketing and

other representations, keep info up-to-date

• OK to offer Free Services even if you hope to earn a

fee from future your services

• May offer prizes, or inducements with full disclosure.

(This mirrors TN License Laws.)

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Slide 50


Section 2 COE:


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Article 12 cont’d:• Must disclose your real estate firm name in your ads

• Only participating brokers may claim having sold a

property. No sold sign posted on a listed property

without the listing broker’s consent

• Websites must disclose company name, number and

state of licensure.

• Only use designations and certifications in which you

have earned or are entitled to use

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Slide 51


Section 2 COE:


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Article 13:• No unauthorized practice of law

Article 14:• If charged you must cooperate and not impede

ethics or arbitration hearings, nor threaten to sue,

or share the findings or allegations of the hearings.

Do not obstruct investigative or professional

hearing processes.

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Slide 52


Section 3 COE:

Duties to REALTORS®

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Article 15:• Don’t make false/misleading statements about other

real estate professionals, their companies or business

practices

Article 16:• Don’t interfere with other agent’s clients

• If asked by another REALTOR® the expiration date of

a listing or buyer agreement and you refuse to share

the info, the REALTOR® may contact the client

directly to secure the info and discuss future services

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Slide 53


Section 3 COE:


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Article 16 cont’d:• If contacted by another agent’s client, you may talk

about/initiate a future agreement

• Always ask the consumer if he is in a current, valid

representation agreement

• If representing a buyer, disclose your relationship at

first contact to the seller/seller’s agent, then do it in

writing prior to writing the offer

• If property is unlisted, you are buyer’s agent and you

expect compensation from seller, let seller know at

first contact. Follow up with written confirmation of

agency before writing of offer

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Slide 54


Section 3 COE:


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Article 16 cont’d:• Communicate through the client’s agent unless given

permission to go direct

• Don’t knowingly obligate a party to more than one

commission

• Don’t use an offer/executed purchase agreement to

try to modify the compensation that was offered

• No Posting of a for sale or rent sign without

permission of property owner

• When terminating employment with a broker, you

shall not induce a client to cancel any contract

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Slide 55


Section 3 COE:


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Article 17:• Agree to mediate disputes over commissions between

firms, if mediation is not required, then arbitrate-

Clients may also mediate or arbitrate

• Results bind both parties of the hearing

• If you sue for an arbitrable matter, you have refused to

arbitrate and violated the COE

• Arbitration is also required with disputes with

REALTORS® from other states

What do you do if someone violates the COE?

Contact CAR.

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Slide 56


You Decide

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Slide 57


Case Study1

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Slide 58


Case Study 2

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Slide 59


Case Study 3

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Slide 60


What Your Peers Across the

Country Want You to Know

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Slide 61


Peer Advice

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• Communicate- Answer calls, texts and emails.

• Acknowledge when you receive a message.

• Present yourself as a professional: act like one.

• Don’t lie or fail to disclose necessary info.

• Don’t argue or get nasty with others.

• Be careful what you say.

• Do your job and I’ll do mine.

• Learn what you show do.

• Follow the rules and laws.

• Look for solutions.

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Slide 62


Peer Advice

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• Don’t go into hiding or don’t play games.

• Don’t take a rejected offer personally.

• Be pleasant and don’t get an attitude when

difficulty comes.

• Choose your words carefully. They will

come back to bite you.

• Keep your word.

• Treat people kindly.

• Win-Win works for all.

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Slide 63


Peer Advice

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• Do your part, learn and continue to grow.

• Don’t be part of the problem, be part of the

solution.

• Don’t blast bad behavior on social media. Don’t

add to the mix.

• Gently say something to the person when you

see unprofessional behavior going on.

• Strive for excellence and set a good example.

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Slide 64


Your Peer Advice

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What do you

want your peers

to know?

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Slide 65


Best Practices for Playing Fair

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Slide 66


Is your rule or policy

already in effect?

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Slide 67


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Slide 68


Professionalism Challenge

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The National Association of REALTORS® has

issued a challenge to all members to excel. This

program takes time, commitment and dedication

but doesn’t cost any money. It serves as your NAR

COE Ethics training for that period.

C2EX REALTORS® stand apart from the masses

and are recognized on

NAR’s website.

You can use the logo and

the marketing tools.

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Slide 69


Get Started!

C2EX.Realtor

Got Questions?

[email protected]

Download Free Marketing Materials!

NAR.Realtor/C2EX

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Slide 70


Though some things are out of our control,

we are in control of how We behave and

how We follow the rules.

70

Be the REALTOR® everyone

wants to work with.

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