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In the world of real estate, it is essential to maintain ethical practices to protect both buyers and sellers, as well as the agents themselves. This emphasis on ethics is even more important when it comes to handling expired listings. Let’s look at a practical scenario to illustrate this point.
Scenario: Change of Property Agent
A real estate agent, commonly known as a “broker,” had a listing for a house that had expired. The next day, the house was listed with another “broker” and offered on the MLS (Multiple Listing System). A week later, a third licensee called the first “broker” and requested a key to show the house. Faced with this request, the initial “broker” is faced with a few options:
Possible Responses and Their Appropriateness
- Report that the house is currently off the market.: NO. This does not reflect the reality that the home has been listed with another agent.
- He will leave the key under the doormat.: NO. This would be inappropriate and potentially unsafe.
- “He will set up an appointment for showing the home.”: NO. It is not your responsibility as you are not the current agent for the property.
- Inform that he is no longer the listing agent for the property.: YES. This is the correct and ethical answer. The initial "broker" HAS TO Inform the caller of this information. Any other behavior would be considered unethical and potentially illegal.
Conclusion
Integrity and ethics in the real estate business are paramount. When faced with situations such as an expired listing, it is vital that agents act with honesty and clarity, ensuring that transactions and communications are carried out properly and legally.
