Consider the Code: Ethics for Everyday
NAR’s long-standing Code of Ethics provides consistent standards, guidelines, and language, which ensures REALTORS® conduct business with integrity. The Code is more important than ever when serving your clients and differentiating yourself as a professional. Consider the Code, Standards of Practice, and Case Interpretations to help guide your business decisions.
Question:
After accepting an offer with contingencies on a Saturday morning, the seller has asked me to continue marketing their listed home and has instructed me not to disclose the fact there is an accepted offer to interested buyers. Do I follow the seller’s instructions?
What does the Code say?
- Article 3: REALTORS® shall cooperate with other brokers except when cooperation is not in the client’s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker.
- Standard of Practice 3: REALTORS® shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation.
Answer:
According to Case Interpretation #3-10, Article 3 and specifically, Standard of Practice 3-6, disclosure of accepted offers is required, including those with unresolved contingencies.
Explain to your client how you would be in violation of the REALTOR® Code of Ethics if you did not disclose the accepted offer. While you can continue to market their property, you will have to disclose the accepted offer to interested parties. If it continues to be an issue with your client, discuss the situation with your broker and/or legal counsel.
Other considerations:
Beyond your ethical duties as a REALTOR®, IMLS subscribers are subject to the rules and regulations of the service, which specifies in Section 1.6 that:
Any contingency or conditions of any term in the listing shall be specified and noticed to the Participants by the next business day. Unless the listing involves a Short Sale, listings may only be marked “contingent” when it is documented that all parties agree that the property will continue to be marketed and other offers will be accepted. Listings marked “contingent” in the MLS system must include the terms of the contingency along with the time frame forremoval of the contingency in the Agent Remarks Section of the MLS. All other listings with signed offers to purchase shall be marked “pending.” Failure to submit a contingency or conditions of any term in the listing may result in a fine per transaction, in an amount as determined from time to time by the IMLS Board of Directors.
If your seller accepts an offer on a Saturday, the listing status must be updated by Monday, the following business day.
