Realtor Ethics

[Ken B]

If that is true, someone should tell the AMC's that send appraisers from Northern Virginia to the market in Norfolk/Virginia Beach area fo do appraisals. That is 3.5 hours away and 185+- miles. Happens all the time.

Where exactly in dodd frank does it state that a Real estate agent "Must" give an appraiser access to a property?

Inquiring minds want to know.

On the largest cases of fraud by an appraiser, acting as an AMC in Virginia was an individual located in Bedfrod, Virginia sending trainees all over the state, and then the owner signed that he "did inspect". It was only after several complaints from agents and others that action was taken.

I suppose you folks want to promote that?

I thought we learned a lesson about vigilante appraiser justice a number of years ago.

Appraiser selection is performed by the lender or their agent (AMC). Anyone having a problem with the lender's appraiser selection must utilize the appropriate channels. Anyone suspecting an appraisal was performed less than competently must utilize the appropriate channels.

Protecting deals and turf by telling a lender-approved appraiser to "go home, you don't belong here" is violating all sorts of law and professional ethics.

 

[Don Clark]

I thought we learned a lesson about vigilante appraiser justice a number of years ago.

Appraiser selection is performed by the lender or their agent (AMC). Anyone having a problem with the lender's appraiser selection must utilize the appropriate channels. Anyone suspecting an appraisal was performed less than competently must utilize the appropriate channels.

Protecting deals and turf by telling a lender-approved appraiser to "go home, you don't belong here" is violating all sorts of law and professional ethics.

And, what law would that be?

[url]http://www.splitrockre.com/fiduciary-duty-agent-to-principal.shtml[/URL]

I have for over 30 years taught the following courses, and am still licensed by the state of Virginia to do so:

Real Estate Law
Real Estate Brokerage
Real Estate Finance
Real Estate Appraisal

That is license #64 for the state.

I have and am licensed by the state to teach appraisal pre licensure courses, license #2.

Any person seeking entry to a property that is listed by a Real Estate Agent has to have permission from the agent to enter that property.

I would be interested in reading any law to the contrary.

 

[Non Sequitur]

I suppose you folks want to promote that?

You should promote a little professionalism to your Realtor students. Start by teaching them it's unethical to make up data. When listing a property ask for a prior appraisal or pay an appraiser to measure the house. Making up GLA is not only unethical, it hurts the market.

 

[Ken B]

And, what law would that be?

[url]http://www.splitrockre.com/fiduciary-duty-agent-to-principal.shtml[/URL]

I have for over 30 years taught the following courses, and am still licensed by the state of Virginia to do so:

Real Estate Law
Real Estate Brokerage
Real Estate Finance
Real Estate Appraisal

That is license #64 for the state.

I have and am licensed by the state to teach appraisal pre licensure courses, license #2.

Any person seeking entry to a property that is listed by a Real Estate Agent has to have permission from the agent to enter that property.

I would be interested in reading any law to the contrary.

If I or someone else posts the information, will an old dog learn new tricks?

 

[Mark K]

The Realtor has a fiduciary duty to protect their clients interest. If the appraiser is not geographically qualified, then the Realtor can very well refuse them entry. If the appraiser

Don,

There's still a few people unconvinced of this concept but it doesn't seem likely they'll ever understand the difference between the roles of the realtors and that of the appraiser. One is legally obligated to be unbiased (but we know that isn't always the case) and the other is obligated to be biased, to be an advocate in favor of his client.

Some appraisers apparently find the advocacy idea distasteful and "unfair".

Personally, as a broker, I'd rather explain to my client, the person to whom I have a fiduciary duty, why I chose to deny access as opposed to explaining why I knowingly allowed an incompetent appraiser into the property.


"Where exactly in dodd frank does it state that a Real estate agent "Must" give an appraiser access to a property?" - Don

I'm still waiting to see that one too.

 

[Don Clark]

If I or someone else posts the information, will an old dog learn new tricks?

This "Old Dog" is always willing to learn a new trick. But, so far no one has posted anything to show me that "New Trick". Until that time I will continue to "Bark".

 

[Non Sequitur]

"Where exactly in dodd frank does it state that a Real estate agent "Must" give an appraiser access to a property?" - Don

I'm still waiting to see that one too.

It's a direct violation of a number of AIR rules/regs/laws. They have been posted, but ignored by those who think if a law doesn't state something verbatim then it doesn't cover them. Kinda' like making up MLS data with a "not guaranteed" caveat. Realtors think it's OK since there is no ethics rule or law that specifically states "Don't make crap up."

But here's one for you: Where does it state in licensing law or the Realtor COE that a Realtor may judge the competency of other real estate professionals and deny an appraiser access? Or blackball a lender? Or blackball a title company? Or blackball a property inspector? C'mon what's good for the goose is good for the gander, browse through the COE and point it out.

 

[Ken B]

Don,

There's still a few people unconvinced of this concept but it doesn't seem likely they'll ever understand the difference between the roles of the realtors and that of the appraiser. One is legally obligated to be unbiased (but we know that isn't always the case) and the other is obligated to be biased, to be an advocate in favor of his client.

Some appraisers apparently find the advocacy idea distasteful and "unfair".

Personally, as a broker, I'd rather explain to my client, the person to whom I have a fiduciary duty, why I chose to deny access as opposed to explaining why I knowingly allowed an incompetent appraiser into the property.


"Where exactly in dodd frank does it state that a Real estate agent "Must" give an appraiser access to a property?" - Don

I'm still waiting to see that one too.

You like defamation lawsuits? Any broker disparaging a licensed professional by calling them "incompetent" is asking for such litigation.

I wonder if your E&O insurance covers defamation lawsuits.

 

[Non Sequitur]

You like defamation lawsuits? Any broker disparaging a licensed professional by calling them "incompetent" is asking for such litigation.

I wonder if your E&O insurance covers defamation lawsuits.

He also describes FHA as "welfare", I wonder how his mighty NAR would react if they knew?

 

[Ken B]

For Don:

Most residential purchase and sale contracts that I have seen contain some sort of paragraph regarding access to the property for appraisals and other services. I bet whatever standard form is prevalent in the Hampton Roads area has one.

The Florida standard contract states: "Seller shall...provide...access to Property for appraisals and inspection..."

If the Seller or the Seller's agent refuses access to the property, as specified in the contract, would you agree that the Seller is in default of the contract and the earnest money deposit must be returned to the buyer. Might there potentially be grounds for a specific performance suit should the Seller or the Seller's agent refuse to comply with the terms of the contract? If the Buyer's financing is not approved as a result of the Seller's refusal to comply with terms of the contract, might the Buyer sue the Seller and the Broker, if the Broker was complicit in the action, for damages that might result to the Buyer?