\n<\/div><\/div>\n<\/div>\n<\/div>\n

By Anne Cockayne<\/div><\/div>\n

Realtors pay dues. They adhere to a Code of Ethics. They work together under local MLS rules. But you said in last month\u2019s column that I must work with real estate licensees who aren\u2019t part of the Realtor organization. Why in the world would I willingly do that?<\/p>\n<\/div>\n

ORLANDO, Fla. \u2013 Dear Anne<\/strong>: Last month you talked about Article 3 in the Realtors Code of Ethics. It focused on what you should do when a seller tells the listing broker to roll up the welcome mat for a brokerage and refuse to work with them because due to bad blood between the home seller and this other brokerage.<\/p>\n

Personally, I\u2019d like to roll up the welcome mat for nonmembers who want to show my listings. It isn\u2019t right! I pay my dues and contribute to RPAC. Why do I have to cooperate with someone who doesn\u2019t abide by our Code of Ethics? Signed \u2013 Percival<\/p>\n

Dear Percival<\/strong>: Well, because Article 3 obligates you to do so, that\u2019s why. Article 3 says, and I quote:<\/p>\n

\u201cREALTORS\u00ae shall cooperate with other brokers except when cooperation is not in the client\u2019s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker.\u201d<\/em><\/p>\n

If you ask me, the Code is clear: You have an obligation to cooperate with other brokers.<\/p>\n

The word \u201cshall\u201d means \u201cused in laws, regulations or directives to express what is mandatory\u201d (Merriam-Webster). It\u2019s not a suggestion, it is a commitment you agreed to follow when you became a member. Article 3 doesn\u2019t say, \u201cRealtors shall cooperate only with Realtors,\u201d which is what you\u2019re reading into it. Instead, Article 3 uses the term \u201cbrokers,\u201d and the definition of brokers as it relates to the Code of Ethics is:<\/p>\n

\u201cBroker\u201d means a real estate licensee (including brokers and sales associates) acting as an agent or in a legally recognized non-agency capacity.<\/em><\/p>\n

To further clarify, the definition of member as it relates to the Code is:<\/p>\n

\u201cMember\u201d means REALTOR\u00ae and REALTOR-ASSOCIATE\u00ae members of this Board (State Association). REALTORS\u00ae who participate in MLS or otherwise access MLS information through any Board in which they do not hold membership are subject to the Code of Ethics in that Board.<\/em><\/p>\n

A Realtor principal is defined as \u201clicensed or certified individuals who are sole proprietors, partners in a partnership, officers or majority shareholders of a corporation or office mangers (including branch managers) acting on behalf of principals of a real estate firm who subscribe to the Code of Ethics as a condition of membership in a local Board, State Association and the National Association of Realtors.\u201d<\/em><\/p>\n

To understand the Code of Ethics, you need to know the intent behind each obligation, and one way to know intent is to be knowledgeable of the definitions related to the Code.<\/p>\n

Beyond the Code itself, limiting your cooperation to Realtors can be problematic on several levels:<\/p>\n

\n
Antitrust: <\/strong>A possible antitrust violation comes to mind first. Don\u2019t forget, Realtors are competitors. They compete for business amongst themselves and with nonmembers. Having a \u201crule\u201d that discourages members from cooperating or doing business with a nonmember borders on antitrust, and the U.S. Department of Justice pays close attention to how competitors conduct themselves in the marketplace.
\n\t\u00a0<\/li>\n
Duties to Clients and Customers:<\/strong> To analyze the Code of Ethics further, Article 3 falls under the Category, \u201cDuties to Clients and Customers.\u201d If you\u2019re playing keep-away with a nonmember broker, who gets hurt? Your seller \u2013 the person who hired you to sell his or her property. For the most part, I suspect sellers don\u2019t care who you cooperate with, as long as a buyer is brought to the closing table with the desired sales price. When members get territorial over a listing, it\u2019s a disservice to not only the seller but also the buyer. Ask yourself: Are you in the business of selling real estate or not?
\n\t\u00a0<\/li>\n
Reputation:<\/strong> One of the key words for real estate success is \u201creputation.\u201d Imagine what a buyer thinks of a member who refuses to work with their agent because he\u2019s not a member. Like the seller, the buyer wants to purchase real estate, and again, this is the reason you\u2019re in business. The same thing comes into play when a member from another Board sets foot on a property located in another Board\u2019s jurisdiction. I\u2019ve already tackled this in a recent article, \u201cDear Anne: My Seller Won\u2019t Work with Broker X. Now What?<\/a>\u201d\n
I know this sticks in your craw, but it causes unnecessary dissention. Selling real estate in the middle of a pandemic is challenging enough, not to mention a market with too little inventory to sell. Why add fuel to the proverbial fire?<\/p>\n<\/li>\n<\/ol>\n
And remember, the obligation to cooperate does not include the obligation to pay a commission. Many of our members embrace the ability to conduct business and gladly pay a nonmember for their efforts.<\/p>\n
In closing, Florida is an \u201copen\u201d MLS state which, means nonmembers can participate in the MLS here; as a result, an offer of compensation in the MLS extends to them as well as member participants. Keep in mind, if there is a challenge to collect a commission offered in the MLS by a nonmember MLS participant, you\u2019re obligated to arbitrate per NAR\u2019s MLS Policy Statement 7.4 which states:<\/p>\n
\u201cArbitration facilities of an association of REALTORS\u00ae may be invoked by a nonmember participant in the multiple listing service, who can also be compelled to arbitrate using the association facilities.\u201d<\/em><\/p>\n
Take note, the operative word in this policy is \u201calso.\u201d Both member and nonmember can be compelled to arbitrate.<\/p>\n
Let\u2019s move on and concentrate on the job at hand, bringing buyer and seller together to consummate a transaction rather than playing Hatfield\u2019s and McCoy\u2019s. Why risk your professional reputation? Is it worth it? And remember, if you do refuse to cooperate with a nonmember, you could end up before an ethics hearing panel for a possible violation of everyone\u2019s favorite Article, Article 3.<\/p>\n
Anne Cockayne is Director of Local Association Services for Florida Realtors<\/em><\/p>\n
\u00a9 2021 Florida Realtors\u00ae<\/p>\n<\/div><\/div>\n
Go to Source<\/a>
\nAuthor: jamess<\/p>\n","protected":false},"excerpt":{"rendered":"
By Anne Cockayne Realtors pay dues. They adhere to a Code of Ethics. They work together under local MLS rules. But you said in last month\u2019s column that I must work with real estate licensees who aren\u2019t part of the Realtor organization. Why in the world would I willingly do that? ORLANDO, Fla. \u2013 Dear Anne: Last month you talked about Article 3 in the Realtors Code of Ethics. It focused on what you should do when a seller tells the listing broker to roll up the welcome mat for a brokerage and refuse to work with them because due to bad blood between the home seller and this other brokerage. Personally, I\u2019d like to roll up the welcome mat for nonmembers who want to show my listings. It isn\u2019t right! I pay my dues and contribute to RPAC. Why do I have to cooperate with someone who doesn\u2019t abide by our Code of Ethics? Signed \u2013 Percival Dear Percival: Well, because Article 3 obligates you to do so, that\u2019s why. Article 3 says, and I quote: \u201cREALTORS\u00ae shall cooperate with other brokers except when cooperation is not in the client\u2019s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker.\u201d If you ask me, the Code is clear: You have an obligation to cooperate with other brokers. The word \u201cshall\u201d means \u201cused in laws, regulations or directives to express what is mandatory\u201d (Merriam-Webster). It\u2019s not a suggestion, it is a commitment you agreed to follow when you became a member. Article 3 doesn\u2019t say, \u201cRealtors shall cooperate only with Realtors,\u201d which is what you\u2019re reading into it. Instead, Article 3 uses the term \u201cbrokers,\u201d and the definition of brokers as it relates to the Code of Ethics is: \u201cBroker\u201d means a real estate licensee (including brokers and sales associates) acting as an agent or in a legally recognized non-agency capacity. To further clarify, the definition of member as it relates to the Code is: \u201cMember\u201d means REALTOR\u00ae and REALTOR-ASSOCIATE\u00ae members of this Board (State Association). REALTORS\u00ae who participate in MLS or otherwise access MLS information through any Board in which they do not hold membership are subject to the Code of Ethics in that Board. A Realtor principal is defined as \u201clicensed or certified individuals who are sole proprietors, partners in a partnership, officers or majority shareholders of a corporation or office mangers (including branch managers) acting on behalf of principals of a real estate firm who subscribe to the Code of Ethics as a condition of membership in a local Board, State Association and the National Association of Realtors.\u201d To understand the Code of Ethics, you need to know the intent behind each obligation, and one way to know intent is to be knowledgeable of the definitions related to the Code. Beyond the Code itself, limiting your cooperation to Realtors can be problematic on several levels: Antitrust: A possible antitrust violation comes to mind first. Don\u2019t forget, Realtors are competitors. They compete for business amongst themselves and with nonmembers. Having a \u201crule\u201d that discourages members from cooperating or doing business with a nonmember borders on antitrust, and the U.S. Department of Justice pays close attention to how competitors conduct themselves in the marketplace. \u00a0 Duties to Clients and Customers: To analyze the Code of Ethics further, Article 3 falls under the Category, \u201cDuties to Clients and Customers.\u201d If you\u2019re playing keep-away with a nonmember broker, who gets hurt? Your seller \u2013 the person who hired you to sell his or her property. For the most part, I suspect sellers don\u2019t care who you cooperate with, as long as a buyer is brought to the closing table with the desired sales price. When members get territorial over a listing, it\u2019s a disservice to not only the seller but also the buyer. Ask yourself: Are you in the business of selling real estate or not? \u00a0 Reputation: One of the key words for real estate success is \u201creputation.\u201d Imagine what a buyer thinks of a member who refuses to work with their agent because he\u2019s not a member. Like the seller, the buyer wants to purchase real estate, and again, this is the reason you\u2019re in business. The same thing comes into play when a member from another Board sets foot on a property located in another Board\u2019s jurisdiction. I\u2019ve already tackled this in a recent article, \u201cDear Anne: My Seller Won\u2019t Work with Broker X. Now What?\u201d I know this sticks in your craw, but it causes unnecessary dissention. Selling real estate in the middle of a pandemic is challenging enough, not to mention a market with too little inventory to sell. Why add fuel to the proverbial fire? And remember, the obligation to cooperate does not include the obligation to pay a commission. Many of our members embrace the ability to conduct business and gladly pay a nonmember for their efforts. In closing, Florida is an \u201copen\u201d MLS state which, means nonmembers can participate in the MLS here; as a result, an offer of compensation in the MLS extends to them as well as member participants. Keep in mind, if there is a challenge to collect a commission offered in the MLS by a nonmember MLS participant, you\u2019re obligated to arbitrate per NAR\u2019s MLS Policy Statement 7.4 which states: \u201cArbitration facilities of an association of REALTORS\u00ae may be invoked by a nonmember participant in the multiple listing service, who can also be compelled to arbitrate using the association facilities.\u201d Take note, the operative word in this policy is \u201calso.\u201d Both member and nonmember can be compelled to arbitrate. Let\u2019s move on and concentrate on the job at hand, bringing buyer and seller together to consummate a transaction rather than playing Hatfield\u2019s and McCoy\u2019s. Why risk your professional reputation? Is it worth it? And remember, if you do refuse to cooperate with a nonmember, you could end up before an ethics hearing panel for a possible violation of<\/p>\n","protected":false},"author":4,"featured_media":4576,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/4575"}],"collection":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/comments?post=4575"}],"version-history":[{"count":0,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/4575\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media\/4576"}],"wp:attachment":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media?parent=4575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/categories?post=4575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/tags?post=4575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}