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By Shannon Allen<\/div><\/div>\n

Dear Shannon: What do I do when a buyer says they are working with another Realtor? A cohort says the Code of Ethics requires us to ask if they have signed a written exclusive agreement. And another person said we have to get a copy of it. Is that what the code says?<\/p>\n<\/div>\n

ORLANDO, Fla. \u2013 Dear Shannon<\/strong>: I\u2019m a new Realtor\u00ae and read your last article, Must I Push and Probe for Representation Info?<\/a> I now understand that when I\u2019m showing one of my listings to a potential buyer who says they\u2019re working with another Realtor, I should not just ignore that statement. I understand that I need to do something (I think your article said to make reasonable efforts) to find out if the buyer has an exclusive agreement with another Realtor. However, I\u2019m confused about how far to go with this.<\/span><\/span><\/p>\n

At an office meeting recently, a few of us discussed Standard of Practice 16-9 and how we are supposed find out if a buyer has an exclusive agreement. A fellow Realtor said that the Code requires us to ask if the buyer has signed a written exclusive; another Realtor said we have to ask for a copy of it.<\/span><\/span><\/p>\n

There was quite a debate in our office but no consensus. Now I\u2019m confused about what to do. When a buyer tells me that they\u2019re working with another Realtor, do I have to ask if they signed a written exclusive agreement? Do I then have to ask for a copy of it? \u2013 New & Confused<\/strong><\/span><\/span><\/p>\n

Dear New & Confused<\/strong>: Thank you for reading my last article. It\u2019s so important to stay plugged in to all the educational resources available to you. You may be new, but you\u2019re making yourself a knowledgeable professional. Great job! Now, let\u2019s unpack the different issues you\u2019ve presented and get to an answer to your questions regarding Standard of Practice (SOP) 16-9.<\/span><\/span><\/p>\n

SOP 16-9 says, \u201cRealtors\u00ae, prior to entering into a representation agreement, have an affirmative obligation to make reasonable efforts to determine whether the prospect is subject to a current, valid exclusive agreement to provide the same type of real estate service. (Amended 1\/04)<\/em>\u201d<\/span><\/span><\/p>\n

When you\u2019re showing a potential buyer one of your listings and they mention they\u2019re working with another Realtor, SOP 16-9 says you have to do something to find out if the buyer has an exclusive agreement with that Realtor, because doing nothing spells potential trouble with the Code.<\/span><\/span><\/p>\n

You are correct. SOP 16-9 says you have \u201can affirmative obligation to make reasonable efforts to determine whether<\/em>\u201d the buyer has an exclusive relationship with another Realtor. Unfortunately, the Code doesn\u2019t define \u201creasonable efforts.\u201d But, does it say what your fellow Realtors think it says regarding a signed written agreement in this scenario?<\/span><\/span><\/p>\n

Let\u2019s think this through and look carefully at the language of SOP 16-9 which says \u201ccurrent<\/em>,\u201d \u201cvalid<\/em>,\u201d and \u201cexclusive<\/em>.\u201d Look again, carefully. Notice it does not say a \u201csigned<\/em>,\u201d or \u201cwritten<\/em>,\u201d agreement. SOP 16-9 does not contain language requiring you to ask the buyer if they have signed a written exclusive agreement, nor does it have language requiring you to obtain a copy of such agreement. The language just isn\u2019t there. I encourage your fellow Realtors to resist the urge to add language to the Code.<\/span><\/span><\/p>\n

In this case, when you show a potential buyer one of your listings and they mention that they\u2019re working with another Realtor you have an affirmative obligation to make reasonable efforts to determine whether the buyer is subject to an current, valid exclusive agreement with another Realtor. However, SOP 16-9 does not require you to ask if they signed a written exclusive agreement, nor does it require you to obtain a copy of it.<\/span><\/span><\/p>\n

Shannon Allen is an attorney and Florida Realtors Director of Local Association Services<\/em><\/span><\/span>
Note: Advice deemed accurate on date of publication<\/span><\/span><\/p>\n

\u00a9 2022 Florida Realtors\u00ae<\/span><\/span><\/p>\n<\/div><\/div>\n

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