Professional Standards Issues in Today’s Market – REOs and Short Sales

Bank Owned Open House Sign

Photo courtesy of Flickr user (and AAR member) Nick Bastian Tempe AZ

This is part two in a four-part series. See part one (property management).

Arizona is one of the hardest hit states for foreclosures and short sales, and this has led to increased complaints around these transactions. The public has complaints that offers are not being submitted. They have a lack of trust for REALTORS®. They feel REALTORS® are not communicating with them regarding their offers, counter offers or escrow.  They feel that they are contacted by their REALTOR® only when the REALTOR® needs something from them.

Here are some examples of complaints we’ve received:

  • Agents accepting and communicating verbal offers: leaving the public feeling that they have a contract and then they find out that other offers have come in and the only way to REALLY obtain the property is through a bidding war (or they are told they have lost out entirely)
  • Complaints from REALTORS® when co-broking: agents not communicating with them; a lack of trust in their fellow REALTOR® that offers have actually been submitted and/or are submitted on time; complaints about “inside” selling (in-office contracts that only get put together once their offer is submitted and often from the REALTOR® who purchases for themselves)

Good record keeping on behalf of the agent will assist in reducing risk if a complaint is filed against you.  Record keeping should include: keeping text messages; keeping email communications; and sending a follow-up email, if you have a phone discussion, which outlines the conversation.  Protect yourself with the ability to reproduce communication between you, the client and other REALTORS®.

Stay tuned for the next installment of this month-long series. On Friday, November 18, we’ll touch on the improper drafting of documents and advertising issues.

 

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