Thread: Codes of Ethics for Agents Selling Properties?

As for rules, i don't know as i'm in the same situation, but i agree with you that we need some laws to protect buyers from some problems e.g. frauds etc.

Originally Posted by gharper

I've been looking for a home for a while and we finally got one this past week, but my question is about any kind of laws that protect potential buyers other than the code of ethics that isn't really enforceable.

Really? All the papers you signed to work with an agent and make multiple purchase offers gave you absolutely NO IDEA about the existence of a state Real Estate Commission and the process for making complaints? Here's a wild thought: do an internet search for the phrase "Real Estate Commission" and the name of your state.

When I asked my agent about this he said that some agents don't really follow the guidelines and will just sell it to a friend or family member sometimes so they can get a good deal. He said it happens all the time.

Really? See below.

In another situation I was in, the selling agent backed out at the last minute and told us that he got another offer for the same amount but he liked their type of loan better.

Either the "selling agent" owned the property or he didn't. If he did, he was the SELLER, period. If he didn't own it, then he is not the one who made the decision to accept or not accept an offer. That was the Seller. The agent who lists the property for sale on the multiple list service is called the listing agent. The selling agent is the one who works with buyers.

So are there any rules to protect us prospective buyers? Or are agents pretty much allowed to do whatever they want?

Unlike an internet forum, yes, in real life there are laws that govern the practices of licensed real estate salespeople. On an internet forum, however, anyone can write pretty much anything, such as suggesting that a listing agent makes decisions about which offer the Seller will accept, and on what terms. The Seller (the property owner) decides what price to ask, what offer will be accepted, what terms in the offer are acceptable, and many other things. The listing agent (and the selling agent, for that matter) make none of these decisions.

there are laws to protect the buyer if they use a buyers agent by signing an exclusive buyers agent agreement. In my state anyway, yours may be different.

The whole concept of a buyers agent came about because at one time, no one represented the buyer or their interests.

But regarding your offer not being accepted, especially on a REO, the financing & inspection contingencies are often the difference the bank looks at, as well as the price.

The biggest problem is that you can't control everything with law. It is all about conscience. Also a little bit of awareness could work better together. Social responsibility is another issue. It's a subject of business administration course. But who's gonna teach implementation? Again I guess conscience.

Originally Posted by dognponyshow

Really? All the papers you signed to work with an agent and make multiple purchase offers gave you absolutely NO IDEA about the existence of a state Real Estate Commission and the process for making complaints? Here's a wild thought: do an internet search for the phrase "Real Estate Commission" and the name of your state.

Really? See below.

Either the "selling agent" owned the property or he didn't. If he did, he was the SELLER, period. If he didn't own it, then he is not the one who made the decision to accept or not accept an offer. That was the Seller. The agent who lists the property for sale on the multiple list service is called the listing agent. The selling agent is the one who works with buyers.

Unlike an internet forum, yes, in real life there are laws that govern the practices of licensed real estate salespeople. On an internet forum, however, anyone can write pretty much anything, such as suggesting that a listing agent makes decisions about which offer the Seller will accept, and on what terms. The Seller (the property owner) decides what price to ask, what offer will be accepted, what terms in the offer are acceptable, and many other things. The listing agent (and the selling agent, for that matter) make none of these decisions.

You can find out information about anything on the internet and we could look anything up and there's really no point to have a forum except for chit chat right? The point of the forum is to 'Ask a realtor' so pull the stick out of your ***.

So then you're also going to pick on a typo? So I meant seller's agent instead of selling agent. Again pull the stick out of your ***.

And even if there are laws, you really don't think there's a few bad eggs out there? Maybe you're just defensive because you're an agent, and I offended you or something but I'm not accusing you, I was asking a general question since buyer's agents have to deal with seller's agents. So get over yourself. You don't have to reply if you don't want to.

And finally unlike an internet forum, yes, in real life there are laws that govern the practices of licensed real estate salespeople. On an internet forum, however, anyone can write pretty much anything when they have sticks up their ***.

Thanks for everyone else's responses. Nice to know some people out there know this is a casual environment.

When a seller, especially a bank in a foreclosure, looks at an offer, it is not just the price that will be the deciding factor as to which offer they accept.

The terms of the offer are a big issue, especially with foreclosures. If the bank/seller feels like your loan might not make it to the closing table then they will go with another offer with better terms.

Your loan will almost always lose out to a cash offer.

I don't know about the loan you mentioned, but if your lender will not accept properties which are not in pristine condition then you can expect more rejections from bank/sellers. Do some research into your loan specifics and see if they work anything like an FHA loan. Bank/sellers do not like FHA loans because FHA want the seller to fix problems and the bank/sellers do not like to fix problems.

If your loan won't let you buy a house with problems then maybe your agent is showing you the wrong houses.

I just had a buyer win a bid with a cash offer on a house and we beat out another offer for $65,000 more than ours because the other offer needed a loan and we didn't. It is not my listing.

I think that that may be my problem, many agents may not know/understand the loan, they might even just see the 3% and think it's an FHA loan.

There aren't any special conditions with the loan, it's just a special conventional loan in which the 17% is funded by the California Teacher's Retirement fund and the 80% is through Bank of America. It's designed to help out teachers since they pay us so poorly but it just might be hurting more than helping.

I knew about the cash offer preferences, I hear they can close in about a third of the time as well.

It is not a matter of the agents understanding the loan or not, it is the banks decision on which offer to accept. It would help if the agent presenting the offer to the bank knows this is not a FHA mortgage, but that is up to your agent to explain and make sure they convey this info to the bank. Any offer that is contingent on financing, no matter what type it is, may not look as good to the bank as a cash offer with no contingencies.

My contracts have a section to specify what type of financing is being used and it is possible the contracts used by licensed agents in your state also will have a similar section. Talk with your agent and make sure they are getting this information to the listing agent, and hopefully it will be passed along to the bank.