Tuesday Takeaway: Is it an ethical violation to discuss terms of a potential offer directly to a seller, during a showing, when the seller’s listing agent is not present?

Tuesday Takeaway: Is it an ethical violation to discuss terms of a potential offer directly to a seller, during a showing, when the seller’s listing agent is not present?

ethical codesIs it an ethical violation to discuss terms of a potential offer directly to a seller, during a showing, when the seller’s listing agent is not present? If so, which article?

The Realtors Code of Ethics does not expressly prohibit realtors from discussing terms of a possible contract; however, there are certain rules that must be followed. According to Article 16 of the REALTORS® Code of Ethics (2014), realtors shall not engage in any practice or take any action that is inconsistent with any exclusive representation or exclusive brokerage relationship agreements that other realtors have with their clients. Further, Standard of Practice 16-13, provides that all dealings concerning property exclusively listed, shall be carried on with the client’s representative or broker, and not with the client. Therefore, it is recommended that, before a realtor discusses the terms of a potential offer with a seller, the realtor shall ask whether the seller is a party to an exclusive representation agreement. If the seller is a party to an exclusive representation agreement, the realtor shall not discuss the terms of any potential offer with the seller directly, except with the consent of the seller’s broker representative or at the direction of the seller.

Contact Orlando Real Estate Attorneys at Nishad Khan P.L. if you have questions about ethical violations. We have the experience to help.

The Orlando Real Estate Attorneys at the Law Offices of Nishad Khan P.L. serve clients with Residential, Commercial, and Investment Real Estate Transactions. Let our expertise in Central Florida Real Estate help you.