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

By
Real Estate Broker Owner with Keller Williams Realty Lancaster

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)

Posted by

 

 

Living in Lancaster Group

 

An agent who places your interests as his first priority. 
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

facebook          LinkedIn Cal Yoder Realtor       twitter Cal Yoder Realtor     Cal Yoder google


  Living in Lancaster channel

 

 

 Lancaster, PA Home Search


You can find great local Lititz, PA real estate information on Localism.com The Living in Lancaster Group - Cal Yoder            717.413.0744       is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the pants to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Groups:
Dedicated Bloggers
REALTORS® Code of Ethics Exchange
Tags:
stop poaching my buyers a series on the nar code of ethics part four

Comments 7 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tree to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
484,596
Cal Yoder
Homes For Sale in Lancaster PA - 717.413.0744
Keller Williams Realty Lancaster

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

April 03, 2012 03:14 AM
Rainmaker
1,758,622
Roy Kelley
Retired Real Estate Broker, Maryland Blogger

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.

April 03, 2012 06:03 AM
Rainmaker
556,060
Cherise Selley
Colorado Springs Realtor
Selley Group Real Estate, LLC

Cal,

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

April 03, 2012 03:24 PM
Rainmaker
971,166
Sharon Alters
Your Fleming Island Relocation Agents.
Coldwell Banker Vanguard Realty

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

April 07, 2012 08:02 PM
Rainmaker
484,596
Cal Yoder
Homes For Sale in Lancaster PA - 717.413.0744
Keller Williams Realty Lancaster

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

April 08, 2012 02:02 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the house to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
484,596

Cal Yoder

Homes For Sale in Lancaster PA - 717.413.0744
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Author Bio: Specialities of Cal include listing properties and successfully selling them. He does this well through fantastic marketing and an exceptional ability to price a property correctly. He has a thorough knowledge of the marketplace because he produces market reports monthly. He represents first time home buyers very well because of his patience and communicaton skills. First time buyers rely upon his steady demeanor and tough resolve. Because of Cal's success in investment property he possesses the ability to assess real estate as an investment. This includes rentals and flips in Lancaster City and Lititz, PA area.