Following is a list of situations and issues frequently encountered by agents. The list is not full nor complete for PCRS Policy & Procedure. Other Policy & Procedure items are addressed on the other pages of this website. Therefore it is important that you visit and review each of the website pages.
Minding your manners in the arena of transactions has always been an important skill set for agents in any market. The real estate industry has changed and evolved over time, the requirements and nuances of being a courteous and professional agent changes when new laws and practices are introduced to consumers.
Real estate has continued post-Sitzer-Burnett, but there are some extra steps and new etiquette we need to undertake with consumers and other agents.
Here are eight PCRS policy & procedures that ALL agents follow now pursuant to the rules of real estate.
EDUCATE YOURSELF:
To properly advise the consumer, agent must ensure they thoroughly understand the practice changes and all related documentation so they can correctly advise consumers. This means they must be comfortable with the PEOPLE’S CHOICE forms being utilized and can explain in ‘plain, understandable language’ what they all mean.
They should be able to explain the differences between the options for buyer representation agreements as well as what options sellers have with regard to buyer’s agent compensation. Failure to have a solid understanding of the mechanics of all of this, coupled with the nuances and details involved, can result in mismanaged expectations and negotiations falling apart. Additionally, it can result in litigation to the agent and the firm.
It is a disservice to our industry and the consumer to not be able to clearly articulate the new ways of doing business and the available options to the consumer as a buyer and/or seller.
Avoid commission inquisitions
If you are working with a buyer, you must first and foremost have the skill to prove your value to the Buyer and obtain their consent to pay your commission. If you have a Buyer that needs financial assistance
with your commission, the practice changes don’t call for knowing the exact amount a seller is paying a buyer’s agent before showing the property. Don’t question or press the listing agent if they say the seller will consider
offers of compensation, but they do not have a specific amount the seller has committed to.
Don’t overcomplicate it. Show the property and put the request for compensation in your offer. There is nothing wrong with communicating to the buyer that the seller will consider offers of compensation, but they are not specifying a particular amount, and your fee will need to be negotiated as part of the offer.
It is important to manage the expectations with the buyer with regard to what you went over in your consultation regarding compensation.
Do’s and don’ts of working with buyers
Buyers have choices when it comes to what kind of agreements they can sign. PCRS approved types of Buyer/Agent Agreements (BA) are available on Dotloop for ease of use.
Agents should not tell a buyer they cannot work with them unless they sign an agreement for X amount of time.
Being flexible with the Buyer’s time frame and desires is important,
particularly in working with a buyer that you just met where the reservoir of trust is little to none. You build trust and confidence in your value by not just your words, but your actions in showcasing your knowledge and expertise.
Do’s and don’ts of working with sellers
Sellers have choices, too. They are not responsible nor required to offer compensation to a buyer’s agent. In fact, it is a disservice to a Seller to not present all the facts as to why they do not need to offer Buyer agent compensation. Not only do they not have to pay they also do not have to commit to a specific amount of compensation to a buyer’s agent upfront, should they decide to offer some compensation.
As a listing agent, telling them that they have to offer something or they will be “blacklisted” or no one will want to show their property, or it will take longer to sell the property or they won’t receive as high a sales price is a violation of the federal FAIR HOUSING ACT and can result in an agent’s loss of license and financial penalties due to a civil suit.
Refine buyer consultations
Agents, should have the initial consultation meeting before showing them any property. This means providing the buyer with your unique value proposition showing all that you will do for them along with explaining the rules of real estate and how you will get compensated.
Using a seller’s home as a meeting place is not appropriate, nor should you be trying to do this on the front porch (with the video doorbell recording), on the hood of your car in the driveway or on the street, making a buyer sign a form right then and there. There is always a coffee shop or some kind of café or restaurant a short distance from most neighborhoods.
Implement lender consultations
It is important to walk through potential scenarios about compensation and how that could affect the buyer’s purchasing power ahead of time and formulate some strategies to avoid disruption to the home search and negotiation process.
As an agent, you owe this not only to your client but also to the listing agents and sellers that you are crossing paths with. Walk through what happens if a seller is not offering any Buyer agent compensation or if they are only willing to pay the buyer’s agent a minimal amount, for example.
- What options does the buyer have to account for the difference they have to pay their agent?
- Can they put less money down in that case, or would that make them no longer able to qualify for a loan program?
Don’t ‘police’ buyer consultations
Along the lines of buyer consultations, it is important to remember that as listing agents, we are not the police. It is not your role as an agent to ask another agent or buyer if they’ve signed a buyer representation agreement before they come to see your listing, unless that buyer contacts you directly to see your listing, or if the buyer is someone you plan on meeting with to discuss potentially working with and representing them.
If that is the case, then yes, you absolutely need to know if they have signed something, what kind of agreement it is, and what the terms are, etc.
At an open house, agents should not be asking prospects if they have signed a buyer agreement because if they have not, they cannot come into the open house or if they won’t sign one with you, they can’t see the house. In addition, agents should not be using a sign-in sheet to force a buyer to sign any kind of agreement with them at an open house.
With regards to the listing side of things, it is not appropriate to ask a buyer’s agent to show you their buyer representation agreement when they submit an offer or if you are negotiating one.
A buyer’s agent is not required to provide this to a listing agent, so if you are newer to the listing side, make sure you stay in your lane. Leave it to the agent’s brokerage and the MLS for compliance with regards to agents and their buyers and having signed representation agreements in place. If an agent does not have the required documentation that matches up with the compensation agreed to in a transaction, they cannot get paid.
All agents are required to follow ALL rules mandated by all organizations under which they operate (FREC; MLS; NAR (Code of Ethics); DBPR; PCRS)
It is the policy of PEOPLE’S CHOICE REALTY SERVICES, LLC to strictly adhere to all applicable federal, state and local Fair Housing laws. Every agent, broker, and staff member must provide equal professional service to all clients and customers regardless of race, color, religion, sex, disability, familial status, national origin, or any additional protected classes as defined by state and local laws.
Discrimination in any form will not be tolerated. this includes refusal to rent or sell, steering, blockbusting, disparate treatment, discriminatory advertising or any conduct that violates the spirit or letter of fair housing laws.
Applicable laws
All agents must comply with the following:
Federal Fair Housing Act (Title VIII of Civil Rights Act of 1968, as Amended)
Americans with Disabilities Act (ADA)
Equal Credit Opportunity Act (ECOA)
State and local fair housing regulations specific to the jurisdictions where the agent conducts business
The Composite Disclosure is a PCRS form that must be signed by the Seller(s), on the listing appointment, before they sign any other documents and by the Buyer(s) before an offer is written. It provides a comprehensive disclosure for several situations regarding the transaction.
While Florida Statutes no longer require a written disclosure to Buyers and Sellers, regarding agency, written disclosure is nonetheless required by the Errors & Omissions carrier for PCRS as written proof of the disclosure.
Full Disclosure must be made, in the contract and the MLS, on any transaction in which the agent is an owner or is a primary family member to the owner.
A complete file in Dotloop is required for these transactions.
All contracts must have the ‘ACTUAL’ name(s) of the Owner(s) of Record for the property being conveyed.
If our agent is representing the Buyer(s) and the Listing Agent has not provided the actual name of the Owner(s) of Record, our agent should pursue obtaining the correct Seller(s) name for the contract and put it on the Seller’s line of the contract. If the Listing Agent is uncooperative in supplying the actual Seller(s) name(s) the our agent must go to our website and follow the instructions for obtaining the Owner’s name from the County records.
Commercial and vacant land tracts (zoned non-residential) transactions are to only be handled by those agents who have been fully trained and are experienced in doing so. If a commercial or vacant land opportunity arises, agent must contact broker to discuss the details. In most cases, the agent will be referred to an approved commercial agent to handle the transaction. The two agents will negotiate referral terms between them. All commercial and vacant land transactions are processed on a 90% / 10% commission basis with PCRS receiving 10% of the full commission.
Business Opportunities are NOT permitted and must be referred to an appropriate agency and agent.
All transactions, including new construction, FSBO, Agent owned and Owner requests for non MLS advertising (Owner Authorization required) must be entered into the MLS upon closing. All transactions must be processed through Dotloop.
Agents are restricted from recommending a ‘specific’ or single vendor for any service. A list of at least three (3) vendors can be supplied to assist a Buyer or Seller in finding a vendor but individual recommendations can be made .
It is the responsibility of BOTH agents in a transaction to confirm and disclose the status of the escrow deposit to their respective party.
In keeping with the Florida Statutes regarding title closing procedures, all agent must submit their file for closing a minimum of three (3) full business days prior to closing date and time. Any file can be submitted earlier that the three (3) minimum and is preferred for proper processing.
When going out of the area for vacation purposes or otherwise, all agents must assign another PCRS agent to oversee their business in their absence. Notice must be given to the administration personnel of the name and contact information for the agent responsible for the files and transactions and the period of absence.