Many agents do not realize the risk they take in “cutting corners” or not taking things so seriously. That is why at North Eastern Group Realty in Fort Wayne, Indiana , we reinforce the need for ongoing agent education and development. Recently, both the National Association of REALTORS® and the Indiana Association of REALTORS® published articles exposing some of the most common legal troubles agents encounter:
1). Giving legal or tax advice, especially in short sale situations –Zipforms has Short Sale addendums for both listings and purchase agreements.
2). Agency – Agents are supposed to disclose agency relationship at “first substantive contact” with client.
Dealing with multiple offers – Not informing first Buyer that second offer came in, but just accepting 2nd offer even though it was higher, was determined to be a breach of fiduciary duty (seller may have gotten a higher price through negotiations) and cost agent $745,000 in a Louisiana case Markovich vs Prudential Gardener, REALTORS.
3). Ethics –REALTORS are required to disclose any financial benefit received as a result of referring real estate services to customers. RESPA prohibits any referral fee, kickback or “thing of value” for recommending mortgage or title company; our stance at North Eastern Group Realty is that home warranties and homeowner’s insurance fall into the same category.
Recommending a contractor is not covered by RESPA but if a referral fee is received it must be disclosed per Article 6 of the Code of Ethics.
Caution: an agent was found to be in violation for receiving undisclosed click through fees by referring clients to “preferred providers” through his web site.
4). Not attending closing yourself or not sending a licensed representative in your place.
These are just a few examples of the risks that face REALTORS® as they conduct business and demonstrate why continually staying abreast of real estate laws and regulations is so important.
“Let’s be careful out there!”, Sergeant Phil Esterhaus, Hill Street Blues
To contact a professional Fort Wayne REALTOR® visit NorthEasternGroup.com at Fort Wayne Homes for sale.
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At North Eastern Group Realty, our REALTORS® are committed to serving their clients needs. In fact, each transaction is important, but not because it result in earning a commission, but ultimately to earn future referrals from the client being served. To accomplish that goal, they must have great systems in place for follow-up and tracking...