Stop Poaching My Buyers - A Series on the NAR Code of Ethics (Part Four)

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Real Estate Agent with Keller Williams of Central PA East

Stop Poaching My Buyers - A Series on the NAR Code of Ethics (Part Four)

We have now discussed the purpose of this series, the differences between best business practices, procuring cause and ethical conduct and looked at how one can win the compensation for a transaction, but still act unethically.

Now let’s take a look at an informative article written by attorney James Goldsmith regarding procuring cause. In this article, Goldsmith highlights brokers who try to sidestep the complexity of procuring cause by employing the doorstep rule with open houses. Unless the buyer agent accompanies his or her client to the open house, the buyer agent will not be compensated.

Goldsmith argues this is not what a broker agrees to when he or she becomes a member of the National Association of Realtors. He suggests that brokers refrain from this kind of behavior. The definition of procuring cause is included in NAR’s Code of Ethics and Arbitration Manual. I do not have this Manual and the actual Code of Ethics I find on NAR’s site does not refer to procuring cause.

The most helpful aspect of the article written by Goldsmith was the clarification of how we operate in the Lancaster Association of Realtors. We operate under the “Who Brings the Offer” rule. As an association we have chosen to eliminate the costly arbitration process brought on by procuring cause. This places us in a unique situation. It creates a much simpler situation with regard to conducting business. This is all I know and I like it. This is the quote:

These litmus tests (I refer to them as the doorstep rule and "who brings the offer" rule) have merit. Employing either would mean our local associations would no longer have to conduct costly arbitration hearings. After all, determining probable cause would then be a matter of simply identifying who introduced the buyer or who brought the agreement.

In the next installment, I will discuss the meaning, intended and unintended of using the words, Poaching My Buyer.

Other Posts in this Series:

Stop Poaching My Buyers - A Series on the NAR Code of Ethics (Part One)

Stop Poaching my Buyers - A Series on the NAR Code of Ethics (Part Two)

Stop Poaching My Buyers - A Series on the NAR Code of Ethics (Part Three)

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Cal Yoder

Your Homes for Sale in Lancaster Agent

Keller Williams Realty Lancaster

1630 Manheim Pike

Lancaster, PA 17601

Office Phone: 717-735-1145

Cell Phone: 717-413-0744

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Rainmaker
1,555,535
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

This is such a great and informative series Cal.  Well thought out and very well done.

Apr 03, 2012 02:41 AM #1
Rainmaker
646,344
Stephanie/Bob The Ruiz/Miller Team
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Cal, we use the same "who brings the offer" here in Florida.  Can't wait for the "poaching" post.

Apr 03, 2012 03:03 AM #2
Rainmaker
499,255
Cal Yoder
Keller Williams of Central PA East - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Roger, thanks and I am having fun writing it. It actually has helped me learn a lot.

Bob, interesting to learn you use the "who brings the offer." Is it just your local association or does the entire state of Florida operate under this rule. I have argued that it should be the lay of the land for all of NAR, but am in the minority on that point of view.

Cal

Apr 03, 2012 03:14 AM #3
Rainmaker
2,110,102
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Excellent series, Cal.  Those that use the doorstep rule can quickly destroy relationships with other real estate professionals.  I would prefer to see the prospects welcomed and then referred back to their agent to prepare a contract.

Apr 03, 2012 06:03 AM #4
Rainmaker
556,114
Cherise Selley
Selley Group Real Estate, LLC - Colorado Springs, CO
Colorado Springs Realtor

Cal,

Hope it's ethical to stop by and see how what you're up to... LOL... g

Apr 03, 2012 03:24 PM #5
Rainmaker
980,981
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Cal, that is such a practical rule to have. I think that the definition of procuring cause should be re-written to that definition.

Sharon

Apr 07, 2012 08:02 PM #6
Rainmaker
499,255
Cal Yoder
Keller Williams of Central PA East - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Gordon, of course it is.

Sharon, I really like operating under this rule. It is simple and really makes it much easier to operate.

Cal

Apr 08, 2012 02:02 AM #7
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Rainmaker
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Cal Yoder

Homes For Sale in Lancaster PA - 717.413.0744
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