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It’s all about the Code of Ethics

Agent and Potential Client Shaking Hands in Real Estate TransactionOne of the hardest “opening lines” for a new Realtor® to pull off is “Are you working with a Realtor?” Why is that? Because we know that makes the hair on the back of your neck stand up! What does it matter, after all, where you’ve been and who you’ve talked with before showing up on our doorstep (or cell phone, or email inbox) inquiring about real estate?

You are thinking…what does it matter?  Well it matters.  It matters a lot.

According to Standard of Practice Article 16 of the Realtor® Code of Ethics, REALTORS® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with clients. Here it is:

16-9 of REALTOR® Code of Ethics
REALTORS®, 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.

Under Arizona law, an agency relationship may be created by implied consent based upon the conduct of the principal (you) and the agent (another Realtor®). So, you may be in a legal agency relationship with another agent if you’ve looked at homes with or sought advice from that Realtor® even if you’ve never signed papers to make that agency agreement explicit. You may (or may not) choose to terminate that relationship and work with us, but it’s very important that all parties (you, the other agent, and we) be aware of the consequences of prior actions and deal with them before moving forward. Otherwise, it can simply be a mess at the end when you should be celebrating the purchase of a new home, or the sale of an old one.

So when we ask, please take the question in the spirit we intend:  Making sure you’re happy and satisfied with our services when your transaction concludes. We are just making sure that we are not engaging in a practice that is in violation of our professional Code of Ethics and ultimately, we’re looking out for your best interests. That’s what agency is all about.

When you are ready to buy or sell a home in Flagstaff, AZ, give us a call at 928.714.0001 to arrange a meeting. We’ll happily answer all your questions about agency as well as all aspects of Flagstaff residential real estate. Search for homes on the Flagstaff MLS. 

Thanks to DIANE OSOWIECKI, Diane O and Friends – Benchmark Realty, Franklin, TN for the inspiring this article with her post on Active Rain.