As a REALTOR® my primary job is to protect my client's interest. It is not to practice law, give tax advice our give engineering opinions. I am licensed to sell homes; I am not a Lawyer, a CPA, a Contractor or an Engineer of any type. I can loose my license for practicing law and giving professional advice for something other than what I am licensed to do.
This is the hardest thing for many agents to remember. I constantly hear agents make comments like this home has settling issues or you can knock out that wall and move it there. I cringe when I hear agents make comments like that. I have even heard them giving tax advice or legal advice.
Last week I showed a home that appeared to have possible settling issues. Let me repeat the important part of that sentence: possible. I saw cracking in walls and ceilings and windows that were out of square. I also saw deck and stair cases pulling away from the walls. If you asked me to make a bet, I would law a few bucks down on settling. What did I tell my clients? There may be a possible settling issue. (I also pointed to what I was looking at). I then stated if they wish to purchase this home they should have it inspected by the appropriate professional to determine if it is a problem and if so what the needed remedies are.
Our job is to point out red flags and point them to the appropriate type of professional to get it properly addressed, not to give advice on the problem. If a client has a tax issue or a potential tax issue, I recommend they speak to their tax professional. If they need legal advice, you guessed it I recommend they speak to an appropriate attorney. The big one, if they ask if they can knock out walls or make extensions, I recommend they get in touch with a licensed contractor to determine the feasibility and costs.
I know it is tempting for agents to give legal and tax advice, especially when they think they know the answer. After all we all want to be loved by our clients and we want to be helpful. I can only say one thing. Don't Do It!
If you truly want to be helpful, point out the red flags, document it and recommend they seek professional advice.
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Randy L. Prothero, REALTOR®, ABR, AHWD, CRS, e-PRO, GRI, SFR
Century 21 Liberty Homes
Randy Prothero is well established as an expert in working with military / VA clients and first time home buyers. His home seller's (listing) campaign is one of the most aggressive marketing programs in the area.
Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) and the Leeward Regional Chairman of the Honolulu Board of Realtors. To improve overall professionalism in his area Randy also offers classes for real estate agents.
www.HawaiiRandy.com * Oahu (Honolulu County) Property Search * Hawaii Military Relocations
Excellent post, Randy. I think too many people are uncomfortable with silence.... or perhaps they think by not giving an answer their professional reputation will somehow become slightly tarnished. Bottom line... if it's not your area of expertise... close thy lips.
Jesse - I let clients know that by law I can not give those answers. Most understand and respect that.
Randy - excellent advice. I recommend that all buyers have a home inspection, even if there are no red flags. I do point out the red flags as you say - and that is a good idea to document it - I am going to start doing that on a buyer pro/con list that I use sometimes. Thanks.
Agreed... I doubt 99% of folks would give it a second thought... the 'loose lips' agent never stops to think about that though.
Virginia - I recommend to all of my buyers that they have professional home inspections. To date all but one did. They one exception had a relative who was a licensed contractor do it on a studio condo.
Jesse - They will think about it when it is too late.
Randy, you are right. It is all about about managing risk exposure and serving our clients!
Randy - No argument here. As a broker, I am careful to teach this to our agents as well. I have never had a mediation or threat of lawsuit in almost 12 years of real estate. Great post!
Gary - That is true.
Jason - I have not had any either and I hope to keep it that way.
We are the source of the source and that does help the client and protect us from lawsuits...
Your Friend in Charlottesville!
I won't do it...you have to be careful how much to cross over the line. I'll make suggestions but always suggest to hire a professional in that area.
Randy, you are right! Going beyond the bounds of our licenses can get us into trouble. But staying too far on the other side of the line can, too. It's a balancing act!
Charles - That we are.
Neal - That is what we are supposed to do. If the client ops not to use a professional, the best bet is to send them a follow-up, so we have a paper trail that we made the appropriate recommendation.
Patricia - There is a certain amount of risk we all assume when doing business. Going beyond your license is not the kind of risk anyone should take on.
Randy, One of my favorite lines is from the movie "Michael". "That's not my area"!! I have a team of people on my side that can answer questions, do inspections and make repairs if necesary. I don't need to know too much. I just need to know who to call.
Randy - I tell my clients I'm not qualified to answer that question, but I can direct you to someone who is. They don't expect me to have all the answers but they do like to know I can direct them to a licensed specialist.
Randy, right on the money. I totally agree. I do mortgages and that is what I talk to my Borrowers about. When the conversation starts to get into the Realtor, Attorney, Accountant, Appraiser, etc end of things I direct them to those professionals. The wrong advice can be very costly in many ways.
B.B. - Knowing who to call is critical.
Norma - I let them know that by law I am not allow to give that advice.
George - It sure can.
I agree and I really get disturbed if an inspector or insurance agent attempts to play expert real estate.
Trey - I agree, that gets under my skin also. What is worse is the hairdresser who knows what their home is worth.
Randy, I just came from Pat Kennedy's Active Rain Week In Review: August 20th - 26th I can certainly see why your post was included. Our job is to recognize the red flags. Thanks for the reminder.
Margaret - I have to remind myself. It is so easy to give opinions where we shouldn't.
Great information, never be afraid to say I don't know but let's get an expert to give us the answer.
Have A Great Day
Doris - Even if I think I know and it is outside of my license, I still recommend getting a professional.
Randy, I definitely agree. Though sometimes I get a look like, "Well, what do I know?:-) I regularly utilize a home inspector that regularly reminds me of my training, licensing and limitations. I am no more a home inspector, surveyor, or contractor than I am an attorney.
Suzi - Sounds like a wise home inspector.