Real estate firms are the only ones who fully understand how the real estate business works. They are fully knowledgeable about the terms, the processes, and the agreements that can be made and established between parties in a transaction. They are also knowledgeable with the financial and legal aspects of doing business with them, and they are also informed about the different implications that may arise whenever a client protests or complains about how his transaction was handled. Because of their vast knowledge in the industry, LI realtor has duties to their clients and customers that they must pursue.
The duties of real estate firms to clients and customers are the following:
1. Promote and protect the best interests of the client.
Real estate firms must promote and protect the best interests of their clients, which includes both buyers and sellers. They must transact business with their clients, taking into consideration what they desire. Real estate firms must not primarily take into account their own interests; they must consider it only secondary to that of their clients. This is essential because in sales, what makes clients buy is not the pricing of the property, but how they’re treated. Even if the property is priced at the lowest possible, if the dealing firm does not purse the best interest of the client, the latter would not buy it.
Promoting the best interests of the client, however, does not mean that only the client’s desire will be followed. Real estate firms still have the obligation to observe honesty and trust among all the parties in the transaction. For instance, the real estate firm must observe the same not only to the client, but also to the owner and the people who will occupy the said property.
2. Represent the client in all transactions.
When acting as agents in a real estate transaction, real estate firms must always represent their clients in all transactions. These transactions involve dealing with tax duties and legal complaints raised by other people such as questioning the propriety of the sale or determining the ownership of the property. Real estate firms must observe this duty in all transactions involving real estate property. This means that any and all activities related to real estate property must be represented by the real estate firm.
3. Avoid misleading the client.
One of the most critical activities of some real estate firms is to impliedly mislead the potential buyer to the real market value of the property sought to be bought. This is an unethical practice because it makes the real estate firm liable for fraud and it also destroys the trust imposed by the clients to the firm. As such, real estate firms have the duty to avoid misleading their client with respect to the market value of the property.
The reason why many real estate firms do this is to successfully close a deal between them and the client. If the client sees that the property is expensive, some real estate firms would end up hiding some charges to make it appear that the property’s market value is cheap. Only then when payment time comes, the client would realize that there are hidden charges which must be paid. This practice does not only defraud clients; it also destroys the reputation of the real estate firm because such client would tell his colleagues not to deal with them.
As such, real estate firms are encouraged not to mislead clients. Instead, they are encouraged to simply pursue the best interest of the client, because if this is successfully done, pricing will become a secondary concern.
4. Submit offers and counter-offers promptly.
Another duty of the real estate firm to its clients is to submit offers and counter-offers promptly.
An offer is a transaction proposal from the real estate firm to the client. It contains the terms and conditions that the real estate firm seeks from the client, and it also contains the price at which the real estate firm wants the property to be bought. If the client agrees, the transaction is sealed. However, if the client disagrees, the real estate firm has the duty to submit a counter-offer promptly. The counter-offer contains any and all revisions that the client wants in the agreement. It also contains the price at which the client is willing to buy the property. As long as there is disagreement between them, offers and counter-offers must be promptly submitted to enable both parties to settle their differences and eventually, to seal a final deal.
We ensure our clients that our member organizations follow these duties and responsibilities. We have incorporated these duties into our code of ethics which our members are required to follow. Because the best interest of the client is our utmost concern, we make sure that these duties and responsibilities are strictly followed and enforced. We ensure our clients that our real estate members are true to their purpose and are only concerned on how to bring satisfaction to their clients. In other words, we make sure that honesty and professionalism govern every transaction.