REALTOR® Code Article 3 – Primary Duty to Client

A REALTOR® shall protect and promote the interests of his or her Client. This primary obligation does not relieve the REALTOR® of the responsibility of dealing fairly with all parties to the transaction.

Article 3’s interpretations also say:

  • 3.2  A REALTOR® shall not intentionally mislead anyone as to any matters pertaining to a property.
  • 3.3  A REALTOR® shall not, during or following the relationship with his/her Client, reveal Confidential Information of the Client.”
  • 3.4  A REALTOR® shall not use any information of the Client to the Client’s disadvantage.”
  • 3.9  “Dealing fairly” means acting honestly and professionally. The obligation to deal fairly does not in any way reduce a REALTOR®’s obligation to fulfill his or her fiduciary duties to a Client and follow the Client’s lawful instructions.

 

"You need to play your cards close to your chest, as they say. But when you’re prepping your clients for what’s to come, do let them know there’ll be times when the wheels of commerce can be made to turn more smoothly if they are oiled with teaser bits of information."
Ethics Guy® Kim Spencer

In other words, look after your client by protecting their privacy, following their instructions, and promoting their interests.

It may be that your client wants buyers to know they’re open to offers. Or that they’ve had a ton of interest. Or none, which is why they’re open to offers, or that they are getting a divorce. Or even that the buyers are panting to get into the place and want the seller to know this.

You need to play your cards close to your chest, as they say. But when you’re prepping your clients for what’s to come, do let them know there’ll be times when the wheels of commerce can be made to turn more smoothly if they are oiled with teaser bits of information:  

“Seller is open to offers.”

“Buyer just loves the place.”

“Seller has been transferred and wants the place sold yesterday.”

“Buyer can pull the trigger and close quickly.”

These are all, technically, examples of confidential client information, meaning the default action is to keep it private. But if you think revealing such a piece of information would move things along, talk to your client and ask for their consent to reveal it.

"These informal conversations, backed up with client consent, can really shorten the distance between a buyer and seller. The dealmakers in our business know this and have become very good at it."
Ethics Guy® Kim Spencer

However, don’t let this escalate to revealing confidential client information without permission, embellishing the facts, fibbing, or worse. These tactics may be tempting to lure a client to the finishing line, but just don’t do it. Misleading buyers and sellers and other professionals is never okay at any time. Professionals do not lie, and they don’t mislead others. They do put the best face on a set of facts, they encourage the other side to head in the direction their client wants, and they do everything they can to get their client to their destination.

It’s okay for another member to ask you pointed questions about your client’s position. They ask because they’d like a frank answer to give their clients. There’s nothing wrong with that, if your client is okay with it. So, ask. If you’re the member on the other side, answer the questions you can and add some oil to the potential deal by encouraging the other side to make a move. There’s nothing wrong with that either.

These informal conversations, backed up with client consent, can really shorten the distance between a buyer and seller. The dealmakers in our business know this and have become very good at it. If you don’t know how far you can go, talk to one of them and ask how they deliver news and information to their clients. They’ve been there before, so why not take advantage of their experience and wisdom? All you need to do is ask!