ChefElectronLoris19
Pam, a real estate agent, has fallen on relatively hard times….
Pam, a real estate agent, has fallen on relatively hard times. Sales have been slow in her market, and most of her backup funds have been used up. Unless things improve soon, Pam worries that she may have to consider leaving the businessa business that she truly loves. This weekend, Pam is holding an open house on one of her better listings, a large five-bedroom home in one of the nicer subdivisions, listed at $450,000. After a fairly slow day, a couple enters the property, and after greeting the prospects, Pam discloses that she is the seller’s agent and invites them to view the property. During the showing, the prospects exhibit a definite interest in the property and begin questioning Pam about possible financing alternatives and procedures for making an offer. Pam produces the Information About Brokerage Services form and begins to explain the agency options. At this point, the prospects interrupt, telling Pam that they have already seen and signed such a form with another agent from a competing company. In fact, they were shown this house and a number of other properties last week by the other agent. After careful consideration, they had decided to make an offer on this house; however, the other agent is on vacation this week and, upon seeing the open house advertised and fearing that the property might be sold, they came directly to Pam to make an offer. Upon further questioning, Pam discovers that the prospects’ status with the other company is that of customer and that they have not entered into a buyer representation contract. They would like to make an offer through Pam today. Pam produces the necessary paperwork and completes the offer, which is later delivered to and accepted by the seller. The following week, the other agent, upon learning of the transaction, threatens legal action, a formal complaint to TREC, and a procuring cause complaint through the local association of REALTORS®.
Consider the levels of guidelines described in the preceding case:
Federal law
State law
Local ordinances
TRELA
TREC
NAR Code of Ethics
Company code of ethics
Pam’s personal code of ethics
While sales agent Pam is holding an open house, a couple enters the open house. Sales agent Pam orally discloses her agency relationship with the seller and hands the couple the Information About Brokerage Services (IABS) Notice. Is an IABS notice needed? What is the MOST important procedure that the broker could have used or made available that would have likely avoided the problems that arose in Pam’s open house nightmare?
