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by
Marcie Roggow, ABR
Last
month I had the opportunity to moderate a panel of real estate service
providers at a local REALTOR" Association education event.
The panel was made up of a lender, a title company person, an appraiser,
and a REALTOR' member. The issue at hand was "What can I disclose
about my client, the transaction, or anything to do with the transaction
to a party who is not my client or the agent of the client?"
The
problem that exists today is not any different than when I started
in this business in 1972. When real estate agents need information
about a loan, they call the lender. Lenders freely give all information
requested, not just to the client's own agent but also to the cooperating
broker. The appraiser working diligently to complete the appraisal
calls the listing agent and says "I'm coming up a little short,
what comparables did you use?"
Wouldn't
you and your buyers love to know when those phone calls are being
made? As the buyer's rep, don't you call listing agents (sometimes
even in designated agency situations in-house) and ask those four
famous questions: Why are they selling? Have there been any offers?
is there room for negotiation? How long has it been on the market?
(Although that information is available in the MLS stats.) When
I ask those questions, most agents freely give me the answers. Title
companies and closing companies have sent copies of the HUD statement
showing closing figures to all parties for years-even though there
are separate pages in order to ensure privacy. Well folks, the truth
of the matter is that what I know is none of your business unless
the party who owns the information gives me written permission to
give the information to you.
When
I bought my home three years ago, I asked if the loan was assumable.
The bank said it was, and when I asked to see an assumption package,
they sent me everything I needed to figure out the sellers' net
sheet-mortgage payoff, per diem, escrow account balances, and daily
accrual. I was able to negotiate a fabulous price for my home based
on that information-all of which was none of my business at that
point in the transaction.
At
my local REALTOR' Association event, each member of my panel of
experts gave their profession's rules and regulations on the release
of confidential information to anyone other than the client. Of
course, they firmly stated adherence to those rules. The appraiser,
for example, said that the appraisal is the property of the bank
that orders it. He said the real estate agent who calls to see how
the appraisal is coming should be told when it would be delivered
to the bank, but not the specifics of the appraisal itself. If the
appraiser needs the comparables, he should get them before starting
the appraisal, or without reference to the fact the appraisal isn't
matching the purchase price. Wouldn't your buyer be shocked to know
that the price of the house had been raised because of the actions
of the seller's agent?
In
this market, where the use of preapproval letters has become prevalent,
a word about confidentiality may be in order. Nowadays, sellers'
agents want the assurance your buyers are qualified. There are too
many full-price and fullprice-plus offers out there. As a buyer's
rep, you know the preapproval letter improves your buyers' chance
of getting the house. There's just one little thing to remember:
Don't put the loan amount in the preapproval letter that you give
to the cooperating broker. Your buyers may decide not to use the
full amount approved, but to make an offer at a lower figure. To
reveal the loan amount approved can sabotage your negotiating strategy.
A letter from the lender saying that the buyer has been given loan
approval for an amount that would allow them to purchase this home
is sufficient.
Finally,
when representing buyers who wish to remain anonymous, their "attorney
in fact" should sign the purchase agreement. Be certain not
to attach a personal check to the purchase agreement to be used
as earnest money.
I
don't make this stuff up folks. I get it from you in class and via
the emails you are so kind to write. So, on the subject of confidentiality,
my advice to you is "Zip it up". What you know about your
client is nobody's business unless your client has given you permission
to disclose it-in writing.
Marcie Roggow,
is co-owner of Creative Learning Concepts, LLC, Sioux Falls, SD,
ww.realestateeducators.com, a senior ABR instructor who also provides
training for state associations, local boards and real estate companies
such as C21 and RE/MAX on RSN. She trains trainers for REBAC, has
written a book, Buyer Representation for the Real EstateProfessional,
and is active within NAR, her local and State Association of REALTOR".
She can be reached at 6051338-8022 or at ABRMarcie@aoLcom.
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