Realtor Ethics

[Terrel L. Shields]

Ken is winning the argument so far...imho.

 

[Ken B]

Not an argument...just two professionals having a conversation.

 

[Don Clark]

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.

A Realtor gives advice to their principal as to all of those matters. And, USPAP itself requires competence. That is all covered in the Competency Rule. TAF that it was important enough to have a seperate rule on the subject. Try "Being Competent", page U-11, Lines 348-362.

Now, show me a Law that disputes that. And, I have defamed no one. i have simply said that a real estate agent has a Fiduciary duty to protect their clients interest. They do that by recommending acceptance of rejection of offers regarding contracts. They do that when following a clients wishes when they put a lock box on the property and control who can gain access(not just appraisers) but anyone, by having a special code for access as well as the normal code to use a lock box. They do that by only giving those who seek access, the code for any alarm system for property access.

Still waiting for a Law that says they cannot refuse access to any person, appraiser, repair person, bug chaser for a termite inspection, etc.

 

[Non Sequitur]

Still waiting for a Law that says they cannot refuse access to any person, appraiser, repair person, bug chaser for a termite inspection, etc.

It's been pointed out several times, no one (including Realtors) may influence the process of choosing an appraiser. You want verbatim language, it doesn't exist. But reasonable people know that Realtors refusing access to appraisers violates AIR and various other rules/laws/regs. But again, there isn't verbatim language, just like there isn't verbatim language anywhere prohibiting Realtors from lying about MLS info.

 

[Ken B]

A Realtor gives advice to their principal as to all of those matters. And, USPAP itself requires competence. That is all covered in the Competency Rule. TAF that it was important enough to have a seperate rule on the subject. Try "Being Competent", page U-11, Lines 348-362.

Now, show me a Law that disputes that. And, I have defamed no one. i have simply said that a real estate agent has a Fiduciary duty to protect their clients interest. They do that by recommending acceptance of rejection of offers regarding contracts. They do that when following a clients wishes when they put a lock box on the property and control who can gain access(not just appraisers) but anyone, by having a special code for access as well as the normal code to use a lock box. They do that by only giving those who seek access, the code for any alarm system for property access.

Still waiting for a Law that says they cannot refuse access to any person, appraiser, repair person, bug chaser for a termite inspection, etc.

Are you saying that contract law is meaningless to the discussion? It was just a start.

 

[Ken B]

Ah, Non, but the language does exist. It is undisputed that an interested party to a transaction can not select the appraiser. Those who would argue that only refusing access to an appraiser, (an appraiser, by the way, who was selected by the appraiser's client based upon THEIR judgment of competency) is not "selecting" the appraiser are misguided.

 

[Ken B]

For Don:

Your argument is that one of the broker's functions is to ensure appraiser "competency."

From the ASC webpage:

Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), as amended (Title XI) established the Appraisal Subcommittee of the Federal Financial Institutions Examination Council (ASC). The purpose of Title XI is to provide protection of Federal financial and public policy interests by upholding Title XI requirements for appraisals performed for federally related transactions. Specifically those appraisals shall be performed in writing, in accordance with uniform standards, by individuals whose competency has been demonstrated and whose professional conduct will be subject to effective supervision. Pursuant to Title XI, one of the ASC's core functions is to monitor the requirements established by the States for certification and licensing of appraisers qualified to perform appraisals in connection with federally related transactions. The ASC performs periodic Compliance Reviews of each State appraiser regulatory program (Program) to determine compliance, or lack thereof, with Title XI, and to assess the Program's implementation of the AQB Criteria as adopted by the Appraiser Qualifications Board (AQB).

I didn't read anything there about authority being granted to an interested party to a transaction with regard to declaring an appraiser's competence to perform a specific job.

Under what authority do brokers have to judge an appraiser's competency?

By the way, I'm sure you know, but perhaps there may be readers who are not aware. FIRREA was established as an Act of Congress. Therefore, it is law.

 

[Non Sequitur]

Ah, Non, but the language does exist. It is undisputed that an interested party to a transaction can not select the appraiser.

I agree, most reasonable do to. But these guys are looking for verbatim language in a law, it's not there.

Those who would argue that only refusing access to an appraiser, (an appraiser, by the way, who was selected by the appraiser's client based upon THEIR judgment of competency) is not "selecting" the appraiser are misguided.

And IMO hypocritical. Their position is Realtors are qualified to judge whether or not an appraiser is competent. But those same Realtors aren't competent enough to tell the truth when entering MLS data and aren't qualified to measure a ranch style home.

 

[J Grant]

Ken posted the section from TILA addressing that coveted parties (including agents)regarding prohibiting their role in appraiser selection in Tehran thread on this very same topic. If I have time tomorrow will find it and cross post it. Seems some ignored it the first time around.

Incredible that you are out there teaching that agents interfering with appraiser selection is okay, (even if for supposedly justifiable reasons ) Did it escape you that the e REALTOR website's own code of ethics is against it?

I hope you know who each and every student is, in your assumption that they will all think it acceptable to be teaching this.

 

[George Hatch]

The only way a broker refusal can have an effect on an appraisal is if a lender allows them to get away with it. And let's face it, many lenders will allow them to get away with it. Realistically, that's not our fault nor our problem - it's the lender who is undermining their own due diligence efforts in favor of chasing the deal. We hate to see that happen because it impacts our business interests, but the lenders and their investors are the ones who are taking the real risk and who face the bigger losses if their gamble doesn't pay off.

I expect politicians to act in a certain manner. I expect lawyers to act in a certain manner. I expect car salesmen to act in a certain manner. I expect the kids who sell magazine subscriptions to act in a certain manner. I expect realty agents to act in a certain manner. And so on and so forth. Everyone has their role to play and their interests to protect as best they can.

It's when you expect people to act in other than their natural tendencies that you get mad. I get angry and disappointed when appraisers deliberately tell lies to hit a target because I don't expect most appraisers to be amenable to that. I don't get (unduly) disappointed when politicians do it because I figure it's part of their job description.

Credibility is based on expectations. It's not reasonable to judge these other players by the same expectations that apply to us, and vice versa.