Ethics

The real estate profession has become increasingly based in legalities. While a handshake can signify an agreement, the contract is the foundation of the real estate transaction today.

With the increased focus on legal issues, NVAR provides members services in the legal arena. Various articles on current and hot legal topics are provided through the weekly NVAR Online News. In addition, the Legal Information Line is available to members.

There are many real estate related questions that arise often. These FAQs (Frequently Asked Questions) by topic are provided to assist you in finding quick answers.

Ethics

Q:  Can a buyer’s agent contact the seller directly when he/she has tried numerous times to communicate with the seller’s agent with no return calls or response?

A:  Not unless the buyer’s agent gets the written consent of the seller’s broker. NRS 645.635 provides, “The Commission may take action pursuant to NRS 645.630 against any person subject to this section who is guilty of:

2. Negotiating a sale, exchange or lease of real estate directly with a client if he knows that the client has a brokerage agreement in connection with the property granting an exclusive agency or exclusive right to sell to another broker, unless permission in writing has been obtained from the other broker.”

Q:  I showed a client a house on Monday. He liked it, but wanted to wait to make an offer. On Wednesday, I called him. He said he had made an offer through another agent who offered to give him back part of his commission for closing costs. Aren’t I entitled to a commission because I showed him the house first?

A:  Maybe. This is an issue to bring before the professional standards committee of your local association for arbitration. Because buyers are shopping around from agent to agent to get a discount deal, agents are having conflicts about who was procuring cause of a sale. If both agents are REALTORS®, they are required by the Code of Ethics to arbitrate this type of issue. It is important that you include the Seller’s broker in the arbitration too.