Here in California, we as Realtors have a fiduciary responsibility to our clients. It is a lofty and heavy responsibility. I take this responsibility very serious and I believe that when we embrace a responsibility for another's welfare, we are held to a standard that will require contant vigilence and a dedication to being a real estate market expert.
The real estate market is a complex system of trends and conditions that are interlaced with local, national and global markets. As a real estate professional it becomes our responsibilty to invest in staying abreast of these markets for our consumers. Establishing relationships with other professional market experts provides us the opportunity to help the consumer with competent resources when needed.
ActiveRain is a wonderful resource for helping the real estate industry stay abreast of the trending and changing markets. We have such a wealth of resources here within AR. I find my time here to be among the most efficient time I spend during my day. Through these resources, I am able to identify competent professionals who embrace and through their writing allow their values and philosophies to emerge. The transparancy of blogging has produced valuable resources to the real estate professional on an individual level and in terms of networking with other like-minded professionals. I know many Rainers better than I know agents I work with each and every day.
Since joining ActiveRain in September of '07, I have gained much and have grown in my awareness of trending technology and the changing real estate industry. There is no concievable way that I would have experienced the growth and development on a personal or business level without my participating in this forum. It is the most efficient and best resource I have to becoming a better Realtor for my clients.
Assuming responsibility for another's welfare on all levels is a serious commitment. I feel more confident in my ability to provide fiduciary responsibilities to my clients. ActiveRain is a huge resource for keeping abreast of our changing industry and in helping me to offer knowledge-based real estate services.
I am always pleased to see that there are other professionals in this industry who take the fuduciary responsibility as seriously as I do. I wish there were more who realized the importance of being serious AND focused in this area. I believe we could change much of the poor perception that the public often has of the real estate profession!
There is a mistake most of us here in Florida make is calling our customers clients and not customers. Clients sounds more professional but implies fiduciary duty, which everyone in the state of Florida is a transactional agent unless you in writing switch to a buyers or sellers agent and those are the only two that owe fiduciary duty to their clients.
Jeanean, great post. Well laid out. It is vital to have a community of Realtors who have ethics and weed through the ones who prey upon clients.
Jeanean--It is ironic that you would say that you feel that you know AR members better than those in your office...I feel that others here, myself included, would concur. I too take those fiduciary duties to heart.
Steve, thanks for coming in here to validate. I agree with you that if we all operated at the standard that should be required we would fair better in our public and industry image.
Heather, I know real estate law differs by state. I have learned so much about Florida real estate law from Bryant Tutas....which in fact inspired this post. I feel that in California...we are held to a higher standard and therefore we are more vigilant in how we conduct our business....I can't for the life of me say that anyone does better business than Bryant Tutas, however!
Kim, thanks for commenting. It's all good and I love the complexity of it all. The higher standards are why 4% have the lion share of the business...I'm sure!
Terri, thanks for stopping by and commenting. I know you are not surprise by the statement. We all know it too well. It's such a good thing!
GREAT SITE CONTENT!
Fiduciary responsibility to our clients is paramount.
Follow this one key & you can't go wrong. Disclose, Diclose, Disclose. & if Your not sure contact your borker.
Sincrely
www.bobschorn.com
Thanks for this Post! Exactly what we feel about AR. We use much of the info in deciding what needs discussion in company meetings!
Jeanean: I see you posted this to a ethics group you are a member of in the Active Rain community, that says it all on the subject of fiduciary responsibility any one who reads and lives by our code of Ethics & Standards will see your blog as being on the mark.. Good Luck and keep up the good work. Steve
Bob, thanks for coming in on this and commentng.
Hello Trey, thanks for stopping by and commenting. I am excited about my company getting into blogging in a big way. My Broker is taking the plunge and I believe it will be so helpful to our entire group. It has been a tremendous resource for me.
Steve, thanks for commenting and validating the post. I appreciate it.
Jeanean, What a wonderful, well written post. I take my fiduciary responsibilities very seriously, as most of us do. (key word, most...lol). isn't Active Rain wonderful? What did we do without it before? Keep up the good work.
Nice blog
I too believe in working solely in the best interest of the person or persons that I represent, either I represent the buyer or the seller.
Dual agency should be a abolished if real estate truley believes in fiduciary duties to our client.
Janean, the fiduciary aspect for many is legal mumbo jumbo- integrity isn't something that a person can achieve without owning it beforehand. It just doesn't go away- great post.
Well done Jeanean. You know, one of the fiduciary duties is undivided loyalty. At any given time a REALTOR should be able to answer this simple question - who is my client? And there should be a singular answer.
Jeanean,
Thanks for the comments. Fiduciary duties are the downfall of many brokers as those duties tend to evaporate if and when the deal goes south. Let's correct the observation by Heather Joubran (2nd comment) and use our Code of Ethics for the definition of client and customer. If we all use the terms embodied in our code, we will be much better able to communicate with each other:
From Standard of Practice 1-2: As used in this Code of Ethics, "client" means the person(s) or entity(ies) with whom a REALTOR® or a REALTOR®'s firm has an agency or legally recognized non-agency relationship; "customer" means a party to a real estate transaction who receives information, services, or benefits but has no contractual relationship with the REALTOR® or the REALTOR®'s firm; "prospect" means a purchaser, seller, tenant, or landlord who is not subject to a representation relationship with the REALTOR® or REALTOR®'s firm; "agent" means a real estate licensee (including brokers and sales associates) acting in an agency relationship as defined by state law or regulation; and "broker" means a real estate licensee including brokers and sales associates) acting as an agent or in a legally recognized non-agency capacity. (Adopted 1/95, Amended 1/07)
This is important because you do not have to have fiduciary duties to a client as Heather states; you only have to have a written relationship with that person for him/her to be your client.
You betcha! If I had not been introduced to AR I would not have gained all the knowledge in all areas of business, marketing, tips as well as self and also connecting with peers. Also, if we ALL would think the same way our industry sure would be in better shape :)
Bill has excellent input, too -- defining the variances among clients vs. customers vs. prospects. When I enter into a contractual agreement with a client, it changes the relationship. I signed it. My signature is my word. And it's my legal responsibility to represent that client and put that client's needs first. But it doesn't mean if I see them messing up that I keep my mouth shut. Just the opposite.
is the current Florida market as bad as we here on the news. From the national news channels it is all gloom and doom. Is it leveling off or getting worse? I am very interested because the Florida market directly affects our market in East Tennesse.
Elizabeth, I have to agree on all counts. I is one of the things I look forward to during each day. Thanks for stopping by and commenting.
Richard, I'm not sure about real estate code or law in your state, but in California we do have dual agency. I have to understand your statement about duel agency. It is definitely a delicate process in representing both parties equally while maintaining your fiduicary responsibilities. I believe it has to do with the clients you are respresenting. I just concluded a dual agency and normally will not. In this case, however both sides of the transaction were very worldly people and knowledgeable about real estate. They understood the intricaties of dual agencies. In most cases, I feel we cannot do the proper job of representing both parties equally. In this case it was a wonderful escrow and went beautifully. Again, both sides of the transaction were wonderful and the home a complete joy with no problems or issues. An escrow made in Heaven. First time that I have every had an escrow go so smoothly. The sellers and the home were just a dream.
Laurie, thanks for stopping by to comment. I have to agree that the base of integrity is established prior to improving in that area. I continue to learn all the time, however and I do believe that when we hold the standard high....we continue to improve. I love ActiveRain because I can interact with so many people operating on that higher level. They say it's a good thing to hang around with great people!
Larry, thanks for coming in on this. I agree. These have all been great comments and those people who embrace good business practice know the element that are involved.
Bill, I think you make a good clarifying statement with your comment. I of course was speaking of those clients I represent in contract to purchase or sell a home. Along with that, is the point of the post and that would be that ActiveRain is a resource that can be used to remain knowledgeable about our trending market conditions. Fiduciary responsibility to my clients, drives this need and provides me with great appreciation of how efficient and helpful my time is here within the forum. I do think your point is helpful to this and any post that refers to fiduciary responsibilities. Real estate law differs from state to state, however the Realtor's COEs do not. It is very helpful to have these unifying standards of conduct to base our business practice upon. Thank you for coming in on this and contributing.
Hello Sally, thanks for visiting and commenting. I know you know...that when you look back and you think...WOW...my life has changed since joining AR. I've come a long way Baby! The journey is amazing and I cannot imagine what it would be like without AR in my life. Nothing ever stays the same and so we are in for new things and who knows how it will go....but I'm in for the ride. Nice to hear from you!
Elizaabeth, you are always so good....I'm afraid...I don't wait for the signed contract....I treat anyone that I commit to helping with the same level of service (fiduciary responosibilities). I do however make the distinction that I choose who I work with. I also know what you were saying and I agree. There is a greater level of responsibility when we move into contract. I turn people away when it is very obvious that they are about to do something that is not in their best interest. I recent had to tell a couple that I could not take their short sale. It is imperative that the people you work with be willing to learn, understand and take responsibility for their decisions. If they will not enter into that partnership with me, I will not work with them. Thanks for coming in on this. You always raise the bar.
Brian, I am going to have to let someone from Florida answer your question. Thanks for stopping by for the read.
This is such an important and topic and one that sometimes slips our minds. It is the number one step we take when working with buyers/sellers. I think it is fair to say that consumers often do not understand this and take us for granted. Thanks for reminding us of our duties. Good information.
Very good and informative post. Real estate agents always need to fulfill alll of the fiduciary duties to our clients which include care,accountability,obedience,loyalty and disclosure. The more we do that,the public will have a better perception of us. Great post.
Very good and informative post. Real estate agents always need to fulfill alll of the fiduciary duties to our clients which include care,accountability,obedience,loyalty and disclosure. The more we do that,the public will have a better perception of us. Great post.