Get a pencil. This is important.

I’ve never sat at an arbitration table before. ::knocks on wood:: I think if I did, I’d have the kind of unflattering pit stains you can expect from being at an outdoor Louisiana BBQ. If you haven’t had someone in your company scare the ba-doodles out of you yet that one day someone somewhere might sue you, allow me.

You, my dear good friend, are a walking target to get sued.

Most times (but not always), when an agent finds themselves on the hot seat with a buyer or seller, it is because they have violated one or more of a realtor’s sacred fiduciary duties. It doesn’t matter what state you live in, this applies to everyone.

6 Realtor Fiduciary Duties

1)    Obedience – It turns out, you have to do what your client asks of you, even if you don’t agree. As long as it doesn’t break a law, you work for them. If they ask you to deliver an offer that hits below the knees, it’s your job to do it. If your client wants to just give in and end negotiations when you’re sure you can still do better, you gotta throw in the towel folks.

2)    Loyalty – You must always keep your clients’ best interest ahead of any other party. The day you make a decision that’s good for you and not your client, you’re in violation.

3)    Disclosure – Coach always says, “no one has ever gone to litigation for over-disclosing material facts.” In most states, every realtor has the obligation to disclose material facts. If it affects the deal or the house, you must disclose.

4)    Confidentiality - you do not disclose “anything that you learn about your client, their business, financial or personal affairs or motivations”. Period. If the negotiations get tough and you have the urge to “just explain”, don’t! You could be in violation if your client has not authorized you to say it.

5)    Accounting – you’re in charge of making sure money ends up in the right hands at the right time and you must keep a record of it.

6)    Reasonable Care – I’m just going to straight up copy and paste the verbiage from the interwebs on this one. “Reasonable Care is the degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances. It is a standard used to determine a legal duty and whether such duty was fulfilled.” 

Before I close out here, I’ll heed the advice of Coach and disclose to you -> I am not an attorney. I’ve never passed the legal bar exam, and I have no authority to give you actual legal advice.

I’d love to hear from you. If you’ve found yourself in sticky spots, or have stories to share, let’s hear them so we can all learn a little more about being the best at our jobs.  

Until then, keep your feet moving, chin up … and burn the white flag.

sz

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