Posted by PRO
Tue, 29 Aug 2006 15:15:00 GMT
Discussions & Information Exchanges
In the real estate context you must avoid discussions, the exchange of information, or agreements with competitors relating to issues such as:
• Boycotting another agent or broker
• Commissions and/or fees
• Commission splits
• The formula used to calculate compensation (e.g., flat fee, percentage of sale price, set fees for set services, etc.)
• Incentives, rebates, etc., for listings
• Marketing strategies and business plans
• Types of listings to be accepted and/or conditions regarding listings
• Types of services to be provided
• Allocation of territories and customers
• Dealings with other REALTORS® and customers
• Advertising/marketing
Decisions on these and any other economic terms of a listing agreement or matters affecting competition must be made independently without any discussion or involvement of competing agents or brokers.
Basic Compliance Rules
There are two basic compliance rules you must follow to help ensure that your business practices comply with the antitrust laws:
• Don’t collude or conspire. Make business decisions without discussion or consultation with competitors.
• Don’t discriminate. Do not discriminate against or refuse to do business with competitors or other persons because of their low pricing policies (although it is permissible to determine that a selling commission offered is inadequate, so long as the decision is made without the involvement of any other agent or broker and is not made based on an agent’s low pricing policy).
By understanding and following these simple rules in all dealings with competitors, customers, clients and real estate associations, REALTORS® can avoid issues involving non-compliance with the antitrust laws.
Guidelines for Verbal and Written Communication
• Be cautious in all verbal and written communications not to incorrectly suggest that anti-competitive conduct is occurring.
• Avoid ambiguity.
• Avoid "guilt complex" words (e.g., "destroy after reading").
• Avoid "buzz words" (e.g., "monopoly, dominate, market").
• Avoid "bad intent" language (e.g., "destroy, run out of business, squash them like a bug").
• Do not paraphrase or give legal advice.
• Justify pricing and other business policies in terms of the value of the service offered.
The Bottom Line
• It is lawful and appropriate to compete aggressively.
• Most commercial activity raises no competition law issues whatsoever.
• BUT you must be sensitive to potential areas of concern.
• At the very least, you should know when to consult further with your broker/manager and/or legal counsel.
For more on antitrust compliance, here’s a helpful NAR brochure: click here.
Posted in Hot Topics in the Real Estate Industry
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Posted by PRO
Mon, 09 Oct 2006 20:49:00 GMT
Arbitration and mediation of disputes between Realtor® brokerage firms and/or brokers is a service provided by the Pinellas Realtor® Organization (PRO). Because by its nature arbitration is adversarial, i.e., win-lose, NAR and PRO recommend using mediation (win-win) for disputes resolution. Advantages of mediation over arbitration are:
- PRO Mediation service is free to members (however, a filing fee is charged)
- By achieving a “win-win” result through mediation, all parties feel they were fairly treated which helps to preserve amicable working relationships in future transactions
- Mediation takes less time and effort
- Mediation allows the parties to design a creative resolution to their dispute
- If a settlement cannot be reached, arbitration is still available
For more information about mediation, including questions and answers, here’s an article recommended by NAR: Please click here. For PRO information about how to file or respond to an Arbitration matter and about the filing fee, click here. (Note: Upon receipt of a request for arbitration, the PRO Professional Standards Administrator will inquire from all parties whether they desire to participate in mediation prior to review of the arbitration request by the Grievance Committee. If all parties agree, the matter is referred to the Mediation Officer; if the mediation attempt is unsuccessful, the matter is referred to the Grievance Committee for review.)
Posted in Hot Topics in the Real Estate Industry
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Posted by PRO
Thu, 03 Aug 2006 18:46:00 GMT
Administrative Users
Joining MLS only, for administrative users, requires that you (as a MLS Participant (Broker) or Subscriber (Agent)) register each unlicensed office assistant (UOA) or unlicensed personal assistant (UPA). The unlicensed UOA or UPA must be directly employed by a Participant or Subscriber; this is defined by the firm issuing a W2 or 1099 to the unlicensed individual. (Note: A licensed UOA or UPA does not qualify as an administrative user.)
For a UOA or UPA to have an individual MLS ID, the MLS Participant or Subscriber would need to pay the full participation fee for that assistant. Instructions to register the assistant are on the Suncoast MLS Reference Center webpage. Click on <Agent Admin Assistant Registration> in the Tools category, or click here.
Posted in Hiring and Developing Associates and Assistants
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Posted by PRO
Thu, 31 Aug 2006 19:59:00 GMT
Best Practices for Defensive Record Keeping
A comprehensive paper trail helps you and your associates to avoid misunderstanding with clients. It also helps to identify mistakes that could lead to litigation. Do you or your associates use the following best practices for documenting a transaction?
- Do you document your sources of information? When passing on information obtained from another source, such as local zoning board, or school system, document your conversation or print the report from the source and with the client. Keep those notes on file.
- Do you keep a telephone log that summarizes all business calls? Note the date and time of the call, the name of the caller, and a one to two line summary of the conversation.
- Do you teach associates how to structure a complete transaction file that includes documents such as disclosure statements as will as detailed notes? Develop a checklist for the front of the file that lists each document that should be present. To avoid documents “disappearing, “add a checkout box that must be initialed before a document is removed.
- Do you instruct associates to keep records of what types of housing each prospective buyer asked to see, all housing options offered, all services provided, and the dates of showing. Retain these files for at least two years, since fair housing complaints may be filed for two years after the incident.
- Do you send sellers written updates on showings and feedback? Phone calls are great, but written documents are a more tangible defense if a dispute arises.
- Do you indicate on correspondence who is receiving copies? For important documents, consider certified mail, courier, or other options that provide a confirmation that the documents were received.
- Do you request a letter from the lending institution stating the reason if a mortgage loan is denied?
- Do you send copies of changes in listing terms, such as price reductions or changes in the listing period to the seller, cooperating broker, and the transaction file?
- Do you use confirmation letters to shift the burden of response to the other party? The recipient of a confirming letter is asked to take some action if the content does not match his or her understanding of what was said.
Best Practices for Defendable Transaction Files
- Signed or acknowledged brokerage relationship disclosure form
- Listing agreement, including comparable market analysis
- Profile sheet with supporting public records documentation
- Property condition disclosure form
- All marketing materials, including newspaper ads and printouts of online listings
- Relocation or referral information, if applicable
- Correspondence and phone logs with buyers, sellers, and other parties to the transaction
- Inspection reports
- Lead paint or other hazardous materials disclosure forms, if applicable
- Copy of purchase contract and addenda
- Copies of invoices for any repair work completed that was required for the sale
- Settlement statement (HUD 1 form), if available
- Escrow account records relating to the transaction
Posted in Managing the Real Estate Transaction
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Posted by PRO
Thu, 31 Aug 2006 12:42:00 GMT
Both brokers and their sales associates have responsibilities to their customers and to each other in creating and maintaining an environment where great customer service is the ultimate objective.
The best practices that follow focus on the seven basic areas where real estate professionals are expected to fulfill this objective through specific requirements that, taken together, will help ensure they achieve a high level of customer satisfaction.
The best practices seven areas, and the customer’s bill of rights, listed separately are:
Posted in Hiring and Developing Associates and Assistants
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