What REALTORS Need to Know – Part 1

By guest blogger Sally Ireland, SFR

There is a broad body of knowledge that governs our actions as REALTORS®:

  1.   Article 26 of the Arizona Constitution authorizes real estate brokers and salespersons to engage in the limited practice of law by drafting the purchase contract and other documents incident to the transfer of real property
  2.   Contract Law
  3.   Arizona REALTORS® State Association Guidelines
  4.   National Association of REALTORS® Code of Ethics
  5.   MLS Rules & Regs
  6.   Arizona State Law
  7.   Arizona Dept. of Real Estate Rules
  8.   Agency Law & our Fiduciary Duty to Clients
  9.   Our Designated Broker’s Policies & Procedures

Whether acting as the listing agent, buyer’s agent or both, you should be concerned with:

  •   Article 26.  As Arizona REALTORS® Michelle Lind recently noted in Real Estate Agent magazine,
    “With power comes responsibility. The court of appeals stated:”

    Having achieved…the right to prepare any and all instruments incident to the sale of real property, including promissory notes, real estate brokers and salesmen also bear the responsibility and duty of explaining to the persons involved the implications of these documents. Failure to do so may constitute real estate malpractice.1

  •   Agency.  In addition, a broker or salesperson acting as an agent, has a fiduciary duty to protect and promote the client’s interests
  •   Professional.  Doing our very best for our clients, as well as being honest with our customers
  •   Integrity.  Making the necessary disclosures for clients, as well as for ourselves
  •   Collaborative.  Working smoothly, competently and cooperatively (as long as in our client’s best interests) with the co-broker
  •   Commission.  Ensuring that the commission being offered fits our broker’s (and our own) business model,
      or ensuring it is being cared for by the buyer.

Next: What REALTORS® Need to Know About Offers (members only)

1Morley v. J. Pagel Realty & Insurance, 27 Ariz. App. 62, 550 P.2d 1104 (1976).

This article is of a general nature and reflects only the opinion of the author at the time it was drafted. It is not intended as definitive legal advice, and you should not act upon it without seeking independent legal counsel.

Tags: ,