REALTOR Code of Ethics Should Help Prevent Foreclosures
There is one defining thing that always comes into play when someone says they are a REALTOR and not just a real estate agent. That is the Code of Ethics that every REALTOR is to follow. What I would like to touch base on in this post is Article #1:
"Article 1
When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly. (Amended 1/01)" - Copied directly from link above.
What I like the best is in the first line: "... protect and promote the interests of their client"
I have been given some grief about asking for more than just a pre-approval letter from a couple of lending institutions recently. They don't want to divulge the buyer's loan package (30 year fixed, ARM, etc.) or what my buyer's good faith estimate reads. I feel that this is a necessity if you are looking out for your client's best interests. Am I wrong?
How would you feel as a REALTOR, bound by the code of ethics, if you got to a closing and found out there that your buyer was using a negatively amortized loan on a home they plan on living in for an extended period of time? It would raise a red flag in my head that these people probably cannot afford this home.
Think of how many foreclosed properties could have been staved off if the real estate professional had learned the ins and outs of their client's loan package in advance.
The other aspect of this, how can you tell if your client is being gouged on their loan application with "fluff" fees if you don't look at their good faith estimate? As REALTORS, we have the duty to tell our clients if their banks are charging exorbitant amounts for appraisals or whatever.
A plea to REALTORS: Please re-look over the Code of Ethics and take the time to analyze your business practices. Are you in violation?
A plea to banks: Lets work together to get our clients the best loan, best home, and best service possible.
A plea to buyers: Be honest with us about your comfortable range for house payments. I realize that an extra $20,000 can go a long way in what amenities you can get in a home. But you really want to be able to keep the home right?
Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud
http://JasonTangen.EdinaRealty.com - Search real estate for sale, open houses, etc. in Central MN
www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud, MN
