Dee VM, Home Buyer in North Plainfield, NJ

Is it ethical for a realtor to also be the attorney & a member/employee of the company that owns the property?

Asked by Dee VM, North Plainfield, NJ Sun Oct 26, 2008

After I put in a bid for a property in NJ, I found out that the listing agent/realtor is also the attorney and is a member/employee of the company who owns the property. Is this an ethical practice? Also, they have never bothered to list the property as "under contract". Is this also an ethical policy?

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3
Agree with Frances. Good job Frances! in our MLS it will go in as pending.
0 votes Thank Flag Link Sun Oct 26, 2008
Good questions Dee.
No real ethical issues here Dee. The area you are intereseted in is commonly set this way whereby the Attorny is also the Lisitng Agent/Broker and may also represent the bank or seller.
Now the Agent/Broker/Attorney can handle things in an unethical way if they choose to BUT you can find out by asking them directly what the ethical issues are, if there are any disclosures they need to provide you as an interested party/buyer and this should open up discussion to enlighten you more...
However an individual mls board and/or Franchise/Brokerage may have a different proceedure for making the 'under contract' public information so there is no ethical issue here either - just a choice the listing company or Broker decides to make. They may wish to get a solid mortgage/finance committment for an existing buyer/contract before they want to make this information public. Hope thsi helps!
0 votes Thank Flag Link Sun Oct 26, 2008
REALTORS are ethically bound to disclose their interest in property when it is on the market. Licensed real estate professionals also have legal obligations relative to disclosure when they are sellers or they go into contract as a buyer in a real estate contract.

Listing a property as "under contract" is often postponed until all contingencies have been satisfied. Some multiple listing services have a status called "Contingent Under Contract" that leaves the property on the market. Not all MLSs have adopted the practice of establishing a separate status for these circumstances.
0 votes Thank Flag Link Sun Oct 26, 2008
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