Written by Sam Clah, Professional Standards Coordinator and Michelle Sinclair, Professional Standards Administrator

Top Ethics Complaints Filed

The Arizona REALTORS® received 52 ethics complaints in the first quarter of 2023.  Below are the top three complaints filed.

The REALTOR® respondent gave their client unauthorized access to a property. While purchasing a property can be very exciting for your clients, remember that giving your clients access to a home without authorization is risky!  As such, when a client asks you to access a property when you have not received permission, you should advise your clients that your Code of Ethics prohibits you from accessing homes without seller or owner permission.

The REALTOR® complainant believes another agent interfered with their client relationship. Technology can be great in facilitating leads and communicating in bulk but remember, you must verify whether a potential client is already represented by a fellow REALTOR®.

The REALTOR® respondent advertised a property with inaccurate details in the listing. Inaccuracies can range from the number of bedrooms, bathrooms or whether the property has a one or two car garage. Ensuring listing details are as accurate as possible is important to avoid being a party to an ethics complaint.

Code of Ethics Articles Violated

During the first quarter of 2023, 13 hearings were held and, as a result, 12 REALTORS® were found in violation of the Code of Ethics. Out of those violations, Articles 3, 9 and 12 were the Articles Hearing Panels found REALTORS® in violation of the most.

Article 3

Article 3 as supported by Standard of Practice 3-9 provides that REALTORS® shall not provide access to listed property on terms other than those established by the owner or the seller.

Unfortunately, in some instances buyer’s agents have provided their clients with the keys to the property prior to close of escrow without receiving approval from the seller or informing the seller’s agent. Can you imagine the shock a seller experiences when they visit their property to pick up a few remaining items just to discover a new family has moved in? Or the fear that overcomes a seller when they think their home is being broken into and vandalized when their alarm system goes off? Save yourself from having an ethics complaint filed against you by not providing unauthorized access to a property prior to close of escrow or on terms other than those established by the seller.

Article 9

Article 9 requires that all agreements related to a transaction are in clear and understandable language expressing the specific terms, conditions, obligations, and commitments of the parties as well as ensuring all copies of the agreements are furnished to the parties upon their signing or initialing.

It’s crucial to remember that your clients are often members of the public that do not have much experience with buying or selling a home. Therefore, it is important that in every transaction, you sit down with your client and ensure they understand the terms and conditions of the agreements they are signing. The language in the agreements may seem very clear to you as a REALTOR® and it can be easy to assume your client will also understand, but assuming is where you get yourself in trouble. Also, when a client requests a copy of a transactional documents, provide your client with the documents whether it be by way of email or a physical copy, even if you believe you have previously provided the documents.  

Article 12

Article 12 states that REALTORS® shall be honest and truthful in their real estate communications and present a true picture in their advertising, marketing, and other representations. When REALTORS® are found in violation of Article 12, it’s often due to incorrect property information in their MLS listing. This can easily be avoided by paying close attention to the information you enter into the listing and by not relying on an old listing. A mistyped piece of information, even if unintentional, can lead to a violation of Article 12. Also, be sure to update your social media pages, websites, and brokerage websites when you switch to a new brokerage or a REALTOR® leaves your brokerage as outdated information can lead to a violation of Article 12.