Standards for real estate agents
Today, our Monday guy, Sam Schneiderman, Broker-owner of Greater Boston Home Team, continues the conversation he began last week about standards for real estate agents and brokers.
Last week, the responses to my post about real estate reality shows began a lively discussion about standards (or lack of standards) for real estate agents. Today, I want to continue the conversation for those who may have missed it over the holiday weekend.
Some background:
It all began when I questioned whether the “reality shows” that I saw set a poor example for both consumers and agents by over-simplifying some of the home buying process. During the discussion, I mentioned that
“In reality, there are no standards of practice (at least in Massachusetts) other than the Realtor’s ™ "code of ethics" which is full of holes and not even understood or observed by most brokers and agents. Even with that code, there is no standard for what an agent must do in a transaction other than get a buyer or seller to the closing table.”
Jima insisted that there were state standards of practice for real estate agents in MA CMR 254 3.00. I responded,
“that by following the "standards of practice" in MA CMR 254 3.00 an agent or broker will meet the state's minimum standards to protect the public and give proper disclosure about …. dual agency or designated agency, which is also a form of dual agency.”
My point was that there are few standards imposed on agents that require them to live up to the expectations of many consumers and certainly some of our readers.
There is one other place where the duties of a real estate agent and broker are detailed. That is on the second page of the “Massachusetts Mandatory Licensee-Consumer Relationship Disclosure” (commonly known as the “agency disclosure form.”)
Some of our readers have repeatedly voiced the opinion that agents should be more knowledgeable about zoning, building codes, home construction, public utilities, etc., etc. While some of us are, the vast majority of agents are not.
Please read MA CMR 254 3.00 Here are the subject headings:
1) Address Reporting.
(2) Broker Employee.
(3) Business Name.
(4) Display of License.
(5) Single License Requirement.
(6) Salespersons Cannot Be Self-Employed.
(7) Notification to Board of Affiliation.
(8) Sharing of Fees.
(9) Advertising.
(10) [Handling of] Client Funds.
(11) Conflicts of Interests.
(12) Attorney Services.
(13) Relationships with real estate brokers and salespeople.
(14) Additional Grounds For Discipline.
Let us know if you think that it goes far enough in setting “standards of practice” that assure that agents and brokers are knowledgeable enough to take the proper steps to represent and protect their clients in a transaction. Then answer this:
If you were on the committee to re-write the “standards of practice” for real estate licensees in Massachusetts, what would you recommend?
