Realtors & Disclosing Contract Information

[jakeboeger]

Why are realtors so hesitant to disclose the contract price of a pending sale? This has always been extremely frustrating for me. About half the realtors I talk to will tell me & the other half wont!

For example, the other day I called the listing agent & the selling agent for a property in Antioch, CA. I spoke to the selling agent first & he gave me the contract price. When the listing agent called me back she said she could not disclose anything.

WTF!!

 

[Zmcraney]

stupidity, not knowing what they're doing, general incompetence

 

[Pamela Crowley (Florida)]

Actually, until it's closed, it is confidential information that the agents really should not be disclosing.

 

[Bob Ipock]

Why are realtors so hesitant to disclose the contract price of a pending sale? This has always been extremely frustrating for me. About half the realtors I talk to will tell me & the other half wont!

For example, the other day I called the listing agent & the selling agent for a property in Antioch, CA. I spoke to the selling agent first & he gave me the contract price. When the listing agent called me back she said she could not disclose anything.

WTF!!

She is right. If she calls you and asks, will you tell her what a property appraised for?

These are confidentiality issues. This was coverd onanother thread this week.

 

[jakeboeger]

Actually, until it's closed, it is confidential information that the agents really should not be disclosing.

Do you have any documentation to support that?

I have both CAR's "Disclosure regarding Real Estate Agancy Relationships" & "Residential Listing Agreement - Agency" forms in front of me & I dont see anything that would prevent such disclosures.

She is right. If she calls you and asks, will you tell her what a property appraised for?

No. I would also gladly refer her to the section of USPAP that prevents me from telling her.

 

[Bob Ipock]

Standard of Practice 1-9

The obligation of REALTORS® to preserve confidential information (as defined by state law) provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any non-agency relationships recognized by law. REALTORS® shall not knowingly, during or following the termination of professional relationships with their clients:


reveal confidential information of clients; or


use confidential information of clients to the disadvantage of clients; or


use confidential information of clients for the REALTOR®’s advantage or the advantage of third parties unless:


clients consent after full disclosure; or

REALTORS® are required by court order; or

it is the intention of a client to commit a crime and the information is necessary to prevent the crime; or

it is necessary to defend a REALTOR® or the REALTOR®’s employees or associates against an accusation of wrongful conduct.


Information concerning latent material defects is not considered confidential information under this Code of Ethics. (Adopted 1/93, Amended 1/01)

 

[hglenbetts]

Yah, what Compliant said....

Why are realtors so hesitant to disclose the contract price of a pending sale? This has always been extremely frustrating for me. About half the realtors I talk to will tell me & the other half wont! WTF!!

Fiduciary responsibility to the seller. If that deals fails, you have disclosed to the world the client's theoretical bottom line. Providing the PA to the lender, who provides it to the appraiser, has maintained a level of confidentiality.

Regarding the copy of PA problem:
Personally, before becoming an appraiser, the LO's appraiser would contact my office for access, I would confirm the order with the LO then not only would I show up at the subject with a clean copy of the PA (who can read those re-faxed copies anyway) I'd have a hand full of "comps" for the appraiser. You know those 2 year old sales in the next town, plus three active listings.:new_smile-l:

 

[Zmcraney]

stupidity, not knowing what they're doing, general incompetence

I am humbled once again. I had to go back and read the Realtor Code of Ethics to make sure.

 

[Francois K. Gregoire]

Standard of Practice 1-9

The obligation of REALTORS® to preserve confidential information (as defined by state law) provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any non-agency relationships recognized by law. REALTORS® shall not knowingly, during or following the termination of professional relationships with their clients:


reveal confidential information of clients; or


use confidential information of clients to the disadvantage of clients; or


use confidential information of clients for the REALTOR®’s advantage or the advantage of third parties unless:


clients consent after full disclosure; or

REALTORS® are required by court order; or

it is the intention of a client to commit a crime and the information is necessary to prevent the crime; or

it is necessary to defend a REALTOR® or the REALTOR®’s employees or associates against an accusation of wrongful conduct.


Information concerning latent material defects is not considered confidential information under this Code of Ethics. (Adopted 1/93, Amended 1/01)

Nice to see you back Bob.

This particular standard of practice was the basis of a presentation made during the 2007 Appraisal Institute Washington Summit. In preparation, I interviewed the Deputy General Counsel for NAR and the attorney that works with the NAR Professional Standards Committee.

Both pointed out that the "confidential information" referred to in the standard of practice is that "defined by state law". Although I have not done an exhaustive study of various state real estate licensing statutes, most that I have examined determine some information to be confidential during the professional relationship between the client and the agent.

Neither NAR attorney was aware of a state law that specifically defined what might be confidential information AFTER the professional relationship was terminated. Oregon may have done this since then. The attorney's aim in making that point was to emphasize that the NAR Code of Ethics DOES NOT prohibit a REALTOR from disclosing information after the sale closed (terms of sale, concessions, etc.) unless that information is specifically defined as "confidential" by state law.

Copies of my Power Point available upon request.

Email me via my profile on this site.

Happy New Year!

 

[jakeboeger]

Wow, so I guess a 50% response rate is pretty good!


So what advice can you give me for finding the contract price of a property? I dont want to ask Realtors to compromise their strict code of ethics.

In my area properties are typically selling anywhere from 1-10% below asking. Contract prices are crucial since the last listing price before a property goes pending is pretty much useless.