by Mike Sharkey
Staff Writer
Realtors who violate their own code of ethics face not only the distinct possibility of a monetary fine but also the guarantee of an appearance before a group of their peers. Melanie Green, the communications director for the Northeast Florida Association of Realtors, said the process is similar to a jury trial.
“There is a tribunal,” said Green, explaining that the main issues are either a grievance that has been filed, an administrative oversight in the buying/selling process or a dispute among realtors over a commission. “It’s a jury by their peers. The tribunal is not picked out of a hat. They go through training, and everything is kept very confidential. It operates very much like a jury in a court in the public sector.”
With over 5,000 members, it’s inconceivable that no one would violate NEFAR’s ethics code — a lengthy document with three sections and 17 articles and dozens of subsections and standards — which is the same code book used by the National Association of Realtors. While the number of realtors that actually have to appear before the tribunal is relatively small, there’s a good reason for it: one of the first things every licensed realtor does is go through NEFAR’s monthly orientation which includes a half-day segment on ethics.
“The code is a national code and every realtor should adhere to it,” said Green. “Every association teaches ethics and we do additional training. Every four years we require all our realtors to go through a refresher course that takes two hours.”
Green said the latest deadline for NEFAR members to take the refresher course was December 31 and not everyone complied. Several realtors were suspended for failing to take the class, despite the fact it was offered for several months at the NEFAR offices, online and even at a couple of hotels where NEFAR rented space. Green said some of those that failed to take the class may have gotten out of the business or simply didn’t care. Others cannot sell real estate until they take the class.
Judy Hicks has been selling real estate for 13 years and is a huge advocate of ethics in her industry.
“It’s the only thing that separates us from the barbarians,” said Hicks, who is with Re/Max Coastal Real Estate. “There are so many kind of realtors these days and it’s so easy to get into real estate. A lot of people get in with no business training or etiquette training. We have to police ourselves in such a way to protect the consumer because there are a lot of predatory poachers.”
Hicks said an example of such predatory tactics is one client of hers. The agent was also a mortgage broker, but didn’t reveal that fact. The homeowner got a terrible deal and is now heavily in debt over a house that wasn’t worth what they paid.
Hicks also has heard of agents who will take keys out of lock boxes for the sole purpose of assuring no other agents can show the property. “Lock boxes” are mini-safes outside homes which realtors can open with a combination to get keys to the house.
“The most common thing I see is a lack of courtesy and a lack of etiquette. That’s what gives us the bad reputation,” said Hicks. “People don’t return phone calls or they send bad information to MLS that is either inadequate or doesn’t describe the property right. Little things like that give realtors a bad name.”
NEFAR does even more to remind realtors of their ethical obligation. With so many members, Green said it’s important to use as many resources as possible. The monthly NEFAR newsletter has a section called “Ethics in Action” where Green cites specific sections of the code and provides real case scenarios in which the code is violated.
NEFAR also has its own in-house ethics officer, Susan Rodehaver, who oversees the ethics training and the tribunals.
Rodehaver helps determine the nature and seriousness of the offense. The tribunal makes the final decision and hands down the penalty. Since no one can sell real estate without a valid license, a suspension of that license is the ultimate penalty.
Hicks believes that one of the best ways to cut down on the number of people entering the industry virtually every day would be to make the real estate license exam harder. She also puts the onus on the brokers.
“There should be tougher guidelines for hiring,” said Hicks. “The hiring process should be more stringent.”
1. When attempting to secure a listing, do not deliberately mislead the owner as to the market value of the property.
2. Do not mislead the buyers or tenants as to the savings or other benefits that might be realized by using the services of a realtor.
3. Do not represent both the seller and the potential buyer without disclosing such arrangement to both parties.
4. Do not reveal confidential information about clients or use confidential information against a client.
5. Do not base appraisal or valuation fees on the actual appraisal or valuation.
6. Do not assume cooperation among brokers/realtors also assures sharing of compensation.
7. Do not misrepresent the availability of access to show or inspect a listed property.
8. Do not recommend any services or organizations with which you have direct interest without full disclosure.
9. Do not deny services based on race, color, religion, sex, handicap, family status or national origin.
10. Do not advertise with any indication of a preference in client of race, color, religion, sex, handicap, family status or national origin.