Things Real Estate Agents Cannot Do for You

Most Real Estate agents are well-trained licensed professionals with high ethic standards. They are bound by state laws and the Real Estate Code of Ethics. Depending on type of employment with an agency, they might have to follow some in house policies as well. They also have to follow the law and practice according to the Federal Fair Housing Act regulations. All this will influence what an agent can do or cannot do, say or not say, and limits his/her interaction with clients.

Many times, clients expect an agent to divulge information on race profile of a particular neighborhood, best school, and other particular information about the area that falls under the category of "no tell," as agents are prohibited by law and ethics to discuss these items with clients. What they can do is to refer the client to a source of statistics so the client can look up the information for himself or herself. Many brokers and agents have those links on their website so clients can search for information. Many times, clients dislike this fact and become annoyed at the real estate agent for not offering the information. Clients in this situation are unaware that a Real Estate professional's job and license are at stake.

Agents cannot disclose information related to a community in these areas - sex, race, religion, handicap, color, familial status, and ethnicity or national origin. Plain and simple it is against the law. In addition, agents can refuse to take on a client that is adamant about those particular requirements. Crime rate is another area in which agents must refer the client to a source of information. Real Estate agents cannot recommend a particular neighborhood to a client - for example, a Latino neighborhood to a Latino client ... and so on. If a client wants to live in a particular neighborhood, the client must provide the parameters for the search and the agent will look for a home within those parameters - but the agent cannot suggest to the client.

The same rules apply to listings of sellers. Some wording that denotes discrimination or addresses any of those items must be avoided on a listing. Words or phrases such as "perfect for a single person with no children" are against ethics and law. In addition, agents will turn down a listing in which the homeowner seems to have a certain race in mind, or a particular group.

Real Estate professionals face many tricky situations and the best policy is to inform clients of ethical dilemmas so they can understand where an agent is coming from and move on to a professional relationship.