Friday, February 29, 2008

What You Need to Know: Article 12

By Jack Wilkinson
2002 President of the Marin Association of REALTORS®

Jack Wilkinson, GRI, is a 29-year member of the Marin Association of REALTORS®. He is a certified instructor of all phases of real estate education, a trainer of the required ethics introduction for MAR and contributing editor of the newly required real estate course, “Blueprint for Success” published by Kaplan Professional Schools.

“Character is not made in crisis-it is only exhibited.” Robert Freeman

The rapid change in the real estate market, at least according to the general media, could and I‘m sure is, cause for some degree of alarm. (Understatement) While the media portray a downward slope of the economy many people become desperate to do deals. And that is the crisis that is faced and tests the mettle of our character.

Since 1913 REALTORS® have used the REALTOR® Code of Ethics to rise above the minimum standards of mere law.

However, sometimes the line can be a bit blurry, especially in times such as these. With the ubiquitous internet that allows us, as real estate practitioners, so many different ways to promote our services and ourselves we may be tempted to “hitch a ride” on someone else’s “wagon” of promotion. Maybe we allow the line between what is “right” and what is possible to become a bit blurry and use it as an excuse to “stretch” that which we think is “allowable.”

We have been hearing a few words about plagiarism lately, the stealing of another’s words or ideas. And that is what the internet and its universal access may tempt us to do.

Article 12 REALTORS® Standard of Practice 12-5:

REALTORS® shall not advertise nor permit any person employed by or affiliated with them to advertise listed property in any medium (e.g. electronically, print, radio, television, etc) without disclosing the name of that REALTORS® firm in a reasonable and readily apparent manner (Adopted 11/86, Amended 1/07)

STEALTH sites, you know, the one where there is no real ID of who or what the site represents, but the key to getting the information is leaving your particulars. It is misleading enough to entice the consumer to leave their information in the belief/hope that they won’t be bothered by a pesky real estate agent. I have seen them and have left information, including my identification as a broker. A couple of times I have received auto-generated replies with property information. Because I have access to the MLS information I have found a couple of times (not too often) listings from brokers other than the one answering the e-mail. I have also gotten “up to date” information of properties that have sold months ago with the enticing “we can help you buy this home today (O.K. it only happened once, but still).

The following is from an article on Article 12 by Mariana Wagner, Keller Williams, Colorado Springs:

• When creating or driving traffic to their Web site, a REALTOR® must not misrepresent who they are and what they offer in any way.
• They cannot use or manipulate another real estate Web sites to make the public think it is their own.
• They cannot use “content developed by others” without express permission of the creator.
• And if a REALTOR® hires a company/person to build and maintain a site, then that hired person must also adhere to these rules as well.

She has stated this well.

My purpose was not to police anybody or anything but simply to find out if this kind of thing happened. It did and does. And it was a REALTOR® that was guilty. I wrote them a letter asking them to stop. They claimed it was an innocent error. I accepted that.

The important thing for us as REALTORS® is to avoid being guilty in the first place. After all, if the consumer is to have any faith in our REALTOR® brand, we must be diligent in adhering to our code of ethics. And we must be diligent in urging our fellow REALTORS® to do the same.

Remember, the Code is not law. I leave you with this: As Douglas William Jerrold said “The character that needs law to mend it is hardly worth the tinkering.”

Friday, February 22, 2008

What You Need to Know: Article 12

By Jack Wilkinson
2002 President of the Marin Association of REALTORS®

Jack Wilkinson, GRI, is a 29-year member of the Marin Association of REALTORS®. He is a certified instructor of all phases of real estate education, a trainer of the required ethics introduction for MAR and contributing editor of the newly required real estate course, “Blueprint for Success” published by Kaplan Professional Schools.

“A people that values its privileges above its principles soon loses both.”
—Dwight D. Eisenhower, inaugural address, Jan. 20, 1953

Today we face a rather different housing market than just last year: there are fewer sales, listings are more difficult to obtain and selling the listings we do have is getting more difficult; we are getting hungry and cold and seem to be standing outside the bakery window, wanting that warm and tasty loaf of bread.

And it is times like this, when we come face to face with temptation and have to make some difficult choices, that our observance of and subscription to the REALTOR® Code of Ethics become very important.

It is easy to be good when everything is going well. If you’re not hungry and cold, standing outside the bakery when all inside are warm and well fed, you are not tempted to steal a loaf of bread.

However, when things get a bit rough and you are cold and hungry, it is very difficult to not, at least, think about stealing that loaf of bread.

A quote by Sam Zell, Chairman, Equity Group Investments,(the largest apartment owner in the United States) from a previous down market was “Stay alive in ’95.” Rather catchy. I read that and thought about this phrase and rhyme: “Now is now and then is twenty ten.” Many seem to think that by 2010 we’ll be on the upswing again, so that gives us a timeline. During the time ahead we must uphold our commitment to the REALTOR® Code of Ethics.

Ethics Defined

One definition of ethics is that they are moral choices made in relationship with others.

We learned the difference between right and wrong in kindergarten. Or at least we got some early training. We were probably introduced to temptation too. We wanted the toy the other kid had. We learned that sharing is one thing but grabbing another’s toy was not acceptable behavior.

I am proud to be a REALTOR® and to let the consumer and my fellow REALTORS® know that I believe in, uphold and am a subscriber, by way of being a REALTOR®, to a specific Code of Ethics.

This is the first in a series of columns that will examine different provisions of the NAR REALTOR® Code of Ethics, including the articles and their accompanying standards of practice.

Code of Ethics: Article 12

“REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional." (Amended 1/08)

“Puffing,” a statement made to enhance a property, is one thing. It is obviously just that and is easily recognized as such. For instance, you write an ad bragging about views: “You can see from here to Hawaii.” This is obviously an exaggeration. The views are good but you certainly cannot see Hawaii from California.

However, “recently painted and landscaped” may be an exaggeration that is an outright lie, if by “recently” you mean five years ago. This is acceptable in geologic time, but not in real estate time.

Standard of Practice 12-10

“REALTORS®’ obligation to present a true picture in their advertising and representations to the public includes the URLs and domain names they use, and prohibits REALTORS® from:

1. Engaging in deceptive or unauthorized framing of real estate brokerage websites;
2. Manipulating (e.g., presenting content developed by others) listing content in any way that produces a deceptive or misleading result; or
3. Deceptively using metatags, keywords or other devices/methods to direct, drive, or divert Internet traffic, or to otherwise mislead consumers.” (Adopted 1/07)

We all need to be careful to avoid “stealing the loaf of bread,” violating the trust and confidence of our customers, clients and fellow practitioners. When we don’t adhere to the REALTORS® Code of Ethics, this is just what we are doing.