Ethics Matters Contacting Another Broker

by MAR Staff | Jun 25, 2013

By Jeffrey D. Chute Mass REALTOR® and Instructor on Professional Conduct

The year 2013 marks the 100th Anniversary of the Code of Ethics and Standards of Practice of the National Association of REALTORS®. In recognition, Jeffrey Chute reviews key components.

Article 16: Standard of Practice #6

Standard of Practice 16-6 is one of those articles which can generate much controversy among brokers. It has to do with current clients under listing contract of one broker contacting another broker with the idea of changing offices upon expiration of the current listing contract.

Picture this: You are contacted by the above homeowners for purposes of entering into a listing contract upon expiration of their current contract with another broker.

1. Can you speak with them about entering into said contract?

2. Can you perform a CMA for purposes of determining market value?

3. Can you give them advice on staging, repairs, and décor tips?

4. Can you provide a plan for marketing, should you obtain the listing?

5. Can you enter into a listing contract with the homeowners PRIOR TO expiration of the current contract…and to take effect upon the expiration of the previous contract?
The answer to ALL of the above is “YES” provided the homeowner client INVITED YOU for such discussions.
Many of us may be uncomfortable as the second broker in the example above because we do not want another broker in contact with our clients while under listing contract with us. Nonetheless, Article 16: Standard of Practice #6 makes it clear that such actions are permissible.