Real Estate Agent Ethics

Thursday May, 2014 12:10 PM Filed in: Ethics | RESPA
Realtor ethics should involve transparency on fees earned from settlement service providers.

Disclosure of Marketing Relationship between Realtors and Vendors



There has been a lot in the news lately about the Consumer Financial Protection Bureau cracking down on kickbacks in the real estate industry. A colleague recently referred me to a lender in Florida that has a privacy pledge for real estate agents. It makes one wonder why this pledge is not incorporated into the core ethics of licensed real estate agents. Below is the pledge. Do you think all realtors should be held to this minimum standard of conduct?

“Make sure your Real Estate Agent KNOWS THE PLEDGE.”
Courtesy of RP Funding


1. I will not recommend or refer clients exclusively to any one lender (including RP Funding). I will encourage my clients to shop for the best loan and best deal.
2. I will not accept marketing fees or incentives from lenders or title companies in return for business. If I do receive any items of value from a lender or title company, I will disclose this fact to my clients.
3. I will not steer my clients to a particular property because it pays me a higher commission. If a particular property does offer a higher commission than others, I will disclose this fact to my clients.
4. If the real estate company I work for receives rent payments, marketing payments, or co-marketing from any lenders or title companies, I will disclose this fact to my clients.
5. If my real estate company has a “preferred” or “in-house” lender or title company and these designations are based on monthly payments of rent, marketing fees, etc., I will disclose this to my clients.
6. I will advise my clients of the benefits of hiring an attorney to review their paperwork.
7. I will put my clients’ interest above my own, even if it means they do not purchase a home, thereby costing me a commission.
8. I will ensure my client understands the importance of inspections and the importance of completing these inspections within the appropriate time frames.
9. I will inform my clients about homebuyer seminars and similar educational opportunities.
10. If I receive commissions from or split commissions with any additional parties, I will make my clients aware of these relationships.

CHRIS PAHL
Real Estate Attorney
945 E Paces Ferry Rd
Suite 2250
Atlanta, GA 30326
Tel. +1 (678) 448-4148
web: GeorgiaTitle.com
contact: PaperAndDirt.com

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