Real Estate Continuing Education Update

Industry Update Overview

• 3-hour real estate and appraisal continuing education class
• Covers code of ethics, RPAC, and other association updates
• Includes guest speakers and information on upcoming events

Code of Ethics

• Established in 1908 by National Association of Real Estate Boards
• Sets standards of professional conduct for real estate industry
• Enforceable by Realtor associations
• Covers duties to clients, the public, and other Realtors

Enforcement Process

• Complaints filed with Professional Standards Administrator
• Ombudsman process to facilitate communication
• Grievance Committee evaluates if violation may have occurred
• Hearing Panel determines if violation proven with clear, strong, convincing proof
• Potential Disciplinary Actions: Letter of warning, education, fine, probation, suspension, expulsion

Article 1: Duty to Client

• Pledge to protect and promote client's interests
• Obligation to client is primary, but must treat all parties honestly

Article 3: Duty to Cooperate

• Obligation to cooperate with other brokers, except when not in client's best interest
• Cooperation does not require sharing commissions or compensating another broker

Article 16: Exclusive Relationships

• Prohibition on interfering with exclusive representation/brokerage agreements
• Caution against anti-trust violations when cooperating

Article 2: Disclosure of Facts

• Avoid exaggeration, misrepresentation, or concealment of pertinent facts
• Not required to discover latent defects or matters outside real estate license

Fair Housing (Article 10 & Standard of Practice 105)

• Prohibition on denying equal services or making discriminatory statements
• Expanded protections for sexual orientation, gender identity, etc.
• Restrictions on advertising that indicates preferences or limitations

Article 15: False Statements About Other Professionals

• Prohibition on knowingly or recklessly making false/misleading statements
• Duty to correct or remove false statements made by othersHere are the study notes:

Article 15 Issue

• Agent didn't respond to phone calls during the Sabbath, which is a day of rest in Judaism
• Another agent, "Girl Boss", posted about the unreturned calls on social media, potentially violating Article 15 of the Code of Ethics
• The responding agent explained the situation and clarified that they don't work during the Sabbath

Blind Offers and Discrimination

• Blind offers became popular as a way to avoid volunteering demographic information about a neighborhood
• This practice helps prevent discrimination based on factors like ethnicity, language, or background
• Article 10 of the Code of Ethics prohibits Realtors from discriminating based on certain characteristics

Art of Professionalism and Social Media

• Real estate professionals should carefully consider their online presence and posts
• Ask yourself: "Does it need to be said?" and "Does it increase professionalism in the industry?"
• Responses to negative reviews or comments should be brief and professional

Arbitration

• Article 17 of the Code of Ethics outlines the arbitration process for resolving disputes between Realtors
• The process involves mediation, and if that fails, arbitration through a hearing panel
• The goal of mediation is for both parties to come to an agreement
• The grievance committee reviews the dispute to determine if it's arbitrable and meets the necessary criteria

Procuring Cause

• The procuring cause is the agent who sets in motion the events leading to the sale of a property
• The procuring cause is the one who originates the series of events that result in the sale
• The preponderance of evidence determines who is the procuring cause
• The procuring cause is responsible for getting the buyer and seller together and ensuring the transaction is completed

Case Study: Rosie Realtor

• Rosie Realtor worked with a client, Annie Artist, to show her properties, including fire stations
• Annie Artist ultimately purchased a fire station without Rosie's knowledge
• Rosie Realtor claimed she was the procuring cause and deserved a commission
• The hearing panel reviewed the case and determined that Rosie Realtor was not the procuring cause due to a break in the chain of events
• The client, Annie Artist, had ended the agency agreement with Rosie Realtor and continued with the transaction herself

Industry Update Overview

• A 3-hour real estate and appraisal continuing education class covers code of ethics, RPAC, and other association updates, and features guest speakers and information on upcoming events

Code of Ethics

• Established in 1908 by National Association of Real Estate Boards to set standards of professional conduct for the real estate industry
• Enforceable by Realtor associations, covering duties to clients, the public, and other Realtors

Enforcement Process

• Complaints are filed with the Professional Standards Administrator
• The ombudsman process facilitates communication, followed by a Grievance Committee evaluation to determine if a violation may have occurred
• A Hearing Panel determines if a violation is proven with clear, strong, convincing proof
• Potential Disciplinary Actions include letters of warning, education, fines, probation, suspension, and expulsion

Article 1: Duty to Client

• Realtors pledge to protect and promote client's interests
• Obligation to clients is primary, but they must treat all parties honestly

Article 3: Duty to Cooperate

• Realtors have an obligation to cooperate with other brokers, except when not in the client's best interest
• Cooperation does not require sharing commissions or compensating another broker

Article 16: Exclusive Relationships

• Prohibition on interfering with exclusive representation/brokerage agreements
• Caution against anti-trust violations when cooperating

Article 2: Disclosure of Facts

• Avoid exaggeration, misrepresentation, or concealment of pertinent facts
• Not required to discover latent defects or matters outside real estate license

Fair Housing (Article 10 & Standard of Practice 105)

• Prohibition on denying equal services or making discriminatory statements
• Expanded protections for sexual orientation, gender identity, etc.
• Restrictions on advertising that indicates preferences or limitations

Article 15: False Statements About Other Professionals

• Prohibition on knowingly or recklessly making false/misleading statements
• Duty to correct or remove false statements made by others

Article 15 Issue

• Example of potential Article 15 violation: agent "Girl Boss" posted about another agent's unreturned calls on social media

Blind Offers and Discrimination

• Blind offers help prevent discrimination based on factors like ethnicity, language, or background
• Article 10 of the Code of Ethics prohibits Realtors from discriminating based on certain characteristics

Art of Professionalism and Social Media

• Real estate professionals should carefully consider their online presence and posts
• Considerations for online presence: "Does it need to be said?" and "Does it increase professionalism in the industry?"
• Responses to negative reviews or comments should be brief and professional

Arbitration

• Article 17 of the Code of Ethics outlines the arbitration process for resolving disputes between Realtors
• The process involves mediation, and if that fails, arbitration through a hearing panel
• The goal of mediation is for both parties to come to an agreement
• The grievance committee reviews the dispute to determine if it's arbitrable and meets the necessary criteria

Procuring Cause

• The procuring cause is the agent who sets in motion the events leading to the sale of a property
• The procuring cause originates the series of events that result in the sale
• The preponderance of evidence determines who is the procuring cause
• The procuring cause is responsible for getting the buyer and seller together and ensuring the transaction is completed

Case Study: Rosie Realtor

• Rosie Realtor worked with a client, Annie Artist, to show her properties, including fiduciary duties and obligations to clients