I just finished my continuing ed hours about 2 weeks ago. We have a handout that we are suppose to give out at the first practical oppurtunity. It discusses a transaction broker, a buyers agent, and sellers agent. In one of my classes there was 2 people that asked where to get this form. For this particular one it happens to be on the forms site, along with the contracts! This was a class that you could take after 2 yrs as an agent and there was also brokers in it. Also we had lots of discussion over agency and they gave us several scenarios, and we worked in groups to come up with the answer. It was amazing hearing people shout out the wrong answers. We all make mistakes at times but it really was surprising how many people missed pretty simple questions. Shouldnt we all know who we represent in a transaction? Shouldnt we make sure our buyers/sellers know who we represent? Im curious how many brokers sit down with agents and go over this info, or how many agents ask their brokers about this info when they dont know the answer. The examples the instructors used were actual cases from the real estate commission. They did not tell us the outcomes but I'm sure some of them ended in lawsuits. Another thing I see in my transactions is the other agents not marking their relationship on the agency disclosure. Feel free to add to this or express your thoughts.

It's not sad. It's an embarrassment to our industry. What other licensed profession allows people to practice it, without knowing basic regs?

KT I could name a few that should be licensed! I have a real issue that you can be a home inspector if you have your name printed on a business card. I think they should be held to high standards. For us we have to disclose what we know. I think its more for monetary reasons. For inspectors, I think there is actually more of a safety factor. If theres something wrong with a house is it cosmetic, is it really an issue or is it something that could hurt someone. Unless you have built or rehabbed homes the average person has no clue about what the stuff an inspector finds really means. I think a lot of times it scares the buyers because they just dont know. The inspector has a lot of trust put into them, and they should have high standards IMO. Back on topic: It is an embarrassment. One thing I read once that stuck with me is that we normally dont own the homes that we are selling so all we have to sell is service. What kind of service are you providing if you dont even know if you represent the buyer, the seller or are a transaction broker? Furthermore when you submit offers or have dealings with another company what message are you sending them when you dont know how to fill out paperwork correctly?

I think part of the problem stems from agents that do so few transactions a year. If you're not using the things taught in classes continually, the info is lost.

KT, you are right about that. I've heard people at our local board talking about how to impose minimum transaction requirements for membership. I don't think they have figured out how to do it yet, but it could be helpful in some situations.

That would be interesting. Not sure if it could work though.

Perhaps if brokers/managers took a larger interest in their agents' education and performance, instead of recruiting, & bottom line, your board wouldn't have to do it. But getting people to collectively agree on something like that would be practically impossible.

The only thing that comes to mind that could possibly work, would be to change licensing law across the state. Maybe mandating a mentor, or something for the first 5-10 transactions?

Thats not a bad idea. However some of the agents with 10 years experience and more transactions than me under their belt still have no clue so that might not work too well either. I had one awhile back that my broker and hers had a chat as they thought it was ok to cross the sign and speak with the mortgage company. REO or not that was still crossing the sign and warranted an A** chewing. Not to mention this agent wanted to know how I got a listing in her area. And of course wanted to know what company and how to contact them. When did we start having areas? The property is covered by our mls and 20 minutes from my office. I think that warrants it being in an area I work. My response is always I have a Kansas license so I cover Kansas. If that isnt enough for them then a little farming in their area is in store.

Locally: The (“Act”) governing the real estate profession has incorporated a Code of Ethics into the (“Act”) making it law. A reported violation results in a visit from government authorized investigators with the authority to examine all records of every nature and description.

Initially, most of the complaints were from fellow real estate agents, reporting other agents for unethical practice. Now, the public is aware that they can file a complaint with the regulatory authorities and in the event an agent is found guilty of an infraction, the consumer has the evidence to launch a successful civil action for damages and receive an out-of-court settlement from the agents insurance company.

Agents that have been successfully prosecuted, NOW, realize that the time, stress and financial costs involved resulting from a complaint can be devastating to ones career.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .

>Another thing I see in my transactions is the other agents not marking their relationship on the agency disclosure.


In the GRI Risk Management class, the instructor (who is a broker and a lawyer) indicated that the agency disclosure form should not be used to mark the type of agency. Instructor stated the form's purpose is to describe the types of agency, but not to commit to one over the course of a transaction, and that verbal discussion should supplement the form.

She gave the example that if an agent represents a seller, and marks that the seller is exclusively being represented on the disclosure, and then the agent finds a buyer for the property, the agent could be subjecting themselves to unnecessary liability if the seller showed they had marked on the form that the agent would be representing only the seller.