Standard of Practice 1-7
“As soon as practical” was added to Standard of Practice 1-7 of the Code of Ethics, effective January 1. Standard of Practice 1-7 requires the listing broker to provide written affirmation that an offer was submitted to the seller or landlord, if the cooperating broker who submitted the offer makes a written request for the affirmation.
The addition of “as soon as practical” is intended to make clear that simply providing the written affirmation is not enough if it was not provided in a timely manner—perhaps even after a transaction closed. Since circumstances vary from one transaction to the next, the standard of practice does not include a specific time frame to affirm that the offer was submitted. Should an ethics complaint be filed citing Article 1 based on this standard of practice, a hearing panel would look at the facts to determine whether notice was provided as soon as practical.
Note that “as soon as practical” also appears in Standards of Practice 3-4 (disclosing a dual or variable rate commission arrangement) and 16-12 (disclosing relationship as a representative of sellers/landlords or as subagents of listing brokers).
Standard of Practice 3-11
The Code of Ethics has long prohibited discrimination against members of the public and in their employment practices. Effective January 1, that anti-discrimination language also applies to broker cooperation.
Article 3 states that “REALTORS® shall cooperate with other brokers except when cooperation is not in the client’s best interest.” NAR has adopted new Standard of Practice 3-11, under Article 3, which spells out that brokers may not refuse to cooperate based on another broker’s membership in a protected class: “REALTORS® may not refuse to cooperate on the basis of a broker’s race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. (Adopted 1/20).”
A written affirmation of a contract offer given to another broker who has interest in the property.. And yes we find someone who speaks a client his language.
Wow, I am amazed both of those would even have to be “newly adopted.” Should have been expected. Interesting.
Article 3 has always held that a REALTOR cannot refuse to cooperate on the basis of any protected class. 3-11 was added to make it clear.
Not strong enough wording. Proof of presenting the offer to the seller must be in writing within 24 hours and in with sellers signature via e-sign whereby seller is identified beyond a shadow of a doubt via the app.
Carmen I agree. There are enough brokers out there who are sitting on an offer over the weekend hoping to get a better one in. Happened to me more than once
I believe you are trying to put too sharp a point on an already very sharp “pencil” – whether the offer is presented within 24-hours and documented doesn’t negate the client’s option to sit-on the offer looking for a better one. Perhaps focusing on “requiring the client” to answer an offer when presented is more the answer you are looking for. Second, what safeguards are in place to protect information transmitted via the “ap” – seems to open the door to litigation should the information be hacked or compromised in the quest to “mine data”.
Carmen ,
I totally agree. We all should practice integrity all the time and not just when it benefits them in a deal but yet when they send the affirmation letter their expectation is an expeditiously return. Clarity of time should be specific: 24 hrs sounds good.
24 hrs is a little over the top, client may not be reachable right away.
Agree
I agree; I haven’t had a bad experience with broker courtesy and I’m sure I would resent it if I did but getting too restrictive about this isn’t a good idea. It creates stress on the seller and the buyer, creating a feeling of “what’s wrong”. Balance and common sense. We aren’t politicians….right? (Just a little current humor).
Define “practical”. Could it be more nebulous? In this day and age of instant communications, 24-48 hours is very practical. Attorneys will have a field day arguing “practical”.
Totally agree.
Glad to see this and it3s its disappointing that these situations actually occur.
Yada. Yada. Yada.
I get offers all the time from agents that don’t even call or text letting me know they sent an offer. I always send the offer right over with net sheet and if it applies number the offers as they come in. Not sure how this will help. The problem is, we give just about anyone a license and then allow them to work for a post office box broker. I recently had a listing non-owner occupied out of state. He received several verbal offers to purchase from him without using the listing office. I informed the seller he has… Read more »
How about giving the seller a way out if a better offer comes along, or if something else changes that causes the seller to not want to sell? That will solve so much of this? Perhaps an option period for the seller?
Sellers need protection too!
The seller should know if he wants to sell if he has his home on the market! I’m a sellers agent but if they are given option periods that would end up being a nightmare, once the contract is finalized the buyer must start his role with diligence, option period inspections, loan app, appraisal. As a buyer … would I invest in those items if the seller can pull out? (Pandora’s box!)
And in-effect what about Buyer reciprocity replying in the same timely manner to a Sellers Counter Offer. As professionals we have to Trust that we are mutually serving our respective Clients in their best interests.