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well good afternoon everyone and welcome we all welcome you to an afternoon where we hope to be able to share and learn quite a bit from each other regarding the code of ethics I'm Marcus wall and I'm proud to be a broker and real estate instructor a Florida realtor from St Augustine Florida and most proud this year to be the chairman for Professional Standards here for our Florida Association of Realtors the program this afternoon will be in compliance with the National Association of realtorss two and a half hour minimum code of ethics presentation which meets our quadrennial ethics training as you know the board of directors of the National Association of Realtors have mandated that all new Realtors and professional Realtors who have been in the business a number of years will get together every four years to complete a minimum of two and a half hours of code of ethics training and today our program will be in compliance with that we've brought a number of professional friends to help us this afternoon I'm Marcus Wally and going to be with you for a number of the articles in our history and introduction we also will'll have Linda dicks a longtime Tallahassee realtor with us Al libert of Miami Dade County who is known in our state of Florida as Mr ethics we'll also have from the Florida Association of realtor staff attorney Christy Harrington and Carolyn Gardner also from the Florida Association of Realtors who is our local leadership Services guide our audience is comprised today of a number of instructors that teach the code of ethics and we are glad you are with us this afternoon As We Begin let's go down the road of some history of the code of ethics a little history of the code of ethics begins that in 1908 the National Association of real tours was formed at that time there were no license laws in effect it was a wild time in the real estate business we were actually known as Peddlers on Horseback crazy things were happening people were buying and selling properties that didn't even belong to them so it was a wild time we can be so proud today that we are realtorss and our organization was one of the first of the learner groups with doctors and lawyers and Engineers to establish a set of conduct for our Behavior the first paragraph of this historic code established 23 ethical obligations and since then for all SE um sequence and subsequent versions of the code those things have been involved there was a historic paragraph in the code that I'd like to read you it says the real estate agent should be absolutely honest truthful faithful and efficient he should bear in mind that he is an employee that his client is his employer and entitled to the best service the real estate agent man can give his information his talent his time his services loyalty confidence and Fidelity these are all the things that the real tour shall give the adoption as I said of the code took place before many of the States ever had license laws and it's interesting today that many of our states took the code as a good beginning of how they would create their license laws think of the code as the highest and best standards for personal and professional conduct the code also applies to us as members when we are buying and selling our own property realtors in specialty areas may be also subject to various codes in their fields but the one duty that every realtor has is the strict adherence to the code can you imagine our business if we didn't have a set of guidelines that we all followed to protect each other and protect the public the Cornerstone of our organization is this realtor code of ethics it what it's what makes us so proud and what sets us apart although we compete together and we do a good job of that we also work together for the benefit of ourselves and the public and for the majority of the public when they are surveyed and asked what's the most important thing to do to you when you do business with a professional person they always list the code of ethics as being a quality that they want to see in all of us from its Inception the code of ethics always required arbitration when there was a monetary dispute between real tours there's a powerful statement that sets the tone for our industry and that is under all is the land this is a powerful statement and it's something that we know is the beginning and basis of our organization ethics business ethics how we handle oursel ask any professional person ask any realtor why their success in real estate has been longterm and it's due to their behavior it's due to their adherence to our code being successful helping the public and walking that fine line of the golden rule is part of the recipe to being successful in our business we know that in the real estate business referrals are a large part of our day-to-day operations being an ethical realtor allows our consumer to refer us and send friends and family to us what's that all saying about don't treat people correctly and they'll tell lots and lots of people but when you do things right the referrals spread and your business grows and you're in our business for a long time today there are 17 articles of the code of ethics divided into a couple of categories duties to clients and customers duties to the public and duties to our fellow Realtors each article has a standard of practice which interprets the particular code and then further you find case interpretations which give actual situations from here on each article our code of ethics begins with the Preamble it's aspirational and although no violation can never be brought up on a realtor due to the Preamble it's important to know about the Preamble and what it is basically as many of us learned when we were children the Preamble begins with the golden rule do unto others as you would have them do unto you it also calls for the widely allocated ownership and the widest distribution of land ownership it also states that we are here to maintain and improve the standards of their calling a couple other important things about our Preamble are that we as real tours are deemed to always be informed when we are here to protect the public we can only protect them when we are knowledgeable about our local community and our industry we must keep up on our education as we all do to remain informed to give good guidance share your expertise one of the most powerful parts of the code of ethics to me is to always be willing to share the fruits of your knowledge to help a fellow realtor I think many of us who have been in our business for a number of years and are successful contribute our sharing to Our Success what do they say about teachers when you know something and you're able to share it and teach someone else that's when you've really grasped it so part of our Preamble is also to share that expertise that each and each and every one of us have a third part of our Preamble says be careful be careful that you don't ever take unfair advantage of a competitor today in our world where we have such good Creative Marketing and Slick ideas that make us individual there's nothing wrong with that just don't take it to the Limit where some of those things might be unfair to our competitors and finally as that golden rule states do unto others as we would have them do unto us I think sometimes if we all followed that Golden Rule there wouldn't be needed there wouldn't be a need for a lot of additional laws as we know the code of ethics is a living breathing document in our industry that changes so rapidly the National Association of Realtors is behind us and they always keep up with those changes and ensure that the code is updated and cutting edge you'll notice every January we'll have a revised code of ethics and it's I think something we should always get a copy of go to our good website realtor.org realtor.org where you can download a current copy of the code each year I value this code it's how I do my business as many of you but I must remember I also have the law should there ever be a conflict between my code of ethics and the law I must remember that the law always prevails a few other things with our Preamble State identify and take steps to eliminate practices that may damage the public or which might discredit or bring dishonor to our organization use exclusive representation of our clients there are a number of ways to do business both on the listing and selling side but we urge you to always seek exclusive representation to protect our customers and clients there we are don't ever take any unfair advantage of a competitor and most importantly with a strong million plus member organization comments are always seen comments are always passed to uphold the Integrity of our industry we never want to make a comment about one of our peers if we can't say something positive and uplifting say nothing and change the subject if we ever say anything about one of our million plus friends we're only damaging ourself there it is if an opinion is sought about a competitor make it positive make it strong move the customer on to another subject the term real tour the Big R that we believe in and throw our shoulders back and are strong about the re the Big R real Tor stands for competence Integrity honesty value moral conduct and all of our relationships a number of teachers here in the room with us and across the country we always instill in our realtor members the proper pronunciation of that word I'd like to just share it with you because you're my fellow instructors and we're the ones out on the road sharing about the code of ethics so we are real tours we're in the realy business so let's say it together one two three real tours there you got it Prof we are real tours okay remember also money no inducement of profit no promise of a listing no promise of additional business nothing should ever sway us from the path that we're on to protect the public and adherence to this code don't ever let any inducement of profit or any type of instruction from a customer or client ever have me departure or depart from what I know is correct the code of ethics has been good to me and to all of us in our business it's helped me be successful it's the thing that I'm most proud of when I'm in front of a customer or client there's also something known as business business ethics industry codes company policy moral values these things play into our business every day they may not be part of the law they may not be part of the code but they're part of our business legal standards and of course our code we're going to take you on a journey today and go through a number of the articles in depth with our fellow instructors that are here to share specific articles Carolyn Gardner and I are going to have a chat over a cafe table and discuss some items that I think will you will find beneficial and we're glad you're with us here today thank you for being here let's take that Journey down the road and share with each other a number of our articles to the code of ethics why don't we begin with article 12 article 12 is our article that gives us guidance on advertising and I think the way I'd like to approach it is let's talk about a few things that are not considered advertising and then we'll go into exactly what is covered under article 12 good definition article 12 says Realtors shall be careful at all times to always portray a true picture in their advertising and their representations to the public we have the additional duty to always Ensure that our professional status is known so if I'm a broker property manager real estate appraiser I need to make sure that those professional statuses are always clearly identifiable I first think about the code of ethics and advertising and my status as a real Tor I'm so proud to wear the PIN I wear it in all my business transactions that's what separates me I also make sure that that status is clearly identifiable on my business card why don't we take a minute and let's just pull out our business cards and let's see do we all show that on our card we identify ourselves as a real tour do you have the large R the registered trademark if not can consider that the next time you place a business card order and I share that with the consumer National is doing an excellent job of running commercials and print media to educate the public about the difference between a leny and a real tour I read an article just last evening that showed the large increase in Awareness by the public to use a clearly identified real tour distinguish yourself there we go that's what we are real tours okay so what's not now that we know what's not let's talk about what is not considered under article 12 a little more I'm working with a customer a client a customer I wish to print out information from the multiple listing service and share well our LS rules allow participants and subscribers to duplicate print email that type of data of a property to a prospect and that is not considered advertising also under our idx the internet data exchange where Brokers allow other Brokers to place information on their website that is also not considered advertising as long of as long as of course that advertising is in compliance with the idx rules we like to think of article 12 and advertising that once you look at something put it through the truth test is what I'm writing in my advertising to describe a property is it truthful is it honest it is it a real representation of that property so you might ask yourself does this pass the truth test now we've all seen those ads that are considered tacky someone saying come work with Mark the most handsome realtor in North Florida well you know that may not be uh truthful it may be considered tacky but it is not under the advertising code that it's not a violation okay here's also something for the truth test we may not do this we may not do this but it would be okay what about us placing an ad showing our competition as compared to us and how much production they've done well here we go the truth test number of real estate companies number of closed deals for the year with a disclaimer at the bottom that says this information comes from the north MLS and very and covers the time period from so and so to so and so well as long as that's truthful that's okay underneath article 12 advertising we may not do a lot of that but it's okay as long as it's truthful and we've got the disclaimer showing the time periods where that production came from how about active and pending sales we all remember that the listings belong to the broker yes so anything that is active or pending comes under the jurisdiction of the broker the broker is the only one that has the permission to advertise those active and pending sales so with that being said how about look what's for sale in Wedgewood Groves number of properties bedrooms and baths and prices and then look at the not correct advertising call Marcus wall your Wedgewood Grove specialist at Caldwell Banker well I don't think that's right unless Marcus wall has all of those properties for sale or he's been given permission by the listing broker this is a violation let's go to sold our code that covers sold properties has changed over the years and today the broker that listed or the broker that sold the property is allowed to say that they sold the property and advertise it so we got we could advertise properties that have closed or sold provided that the representation is true we're back to that good truth serum under article 12 only the listing and selling broker are entitled to claim that they indeed sold the property so we have an example look what's sold in Wedgewood Groves number of properties again bedrooms baths and the selling prices but now he's done it correctly properties reported from the north south MLS from the period November 10 of5 to December 10 of5 and here's the magic that keeps me in compliance these properties were listed and sold by various MLS participants for all your housing needs contact your realtor that is permissible this is a good ad okay now our market around the country has been strong in the last couple of years we've been helping lots of people we've also decided to get involved ourself and buy and sell properties we believe in it so we've been buying and selling we've been purchasing we've been investing so now it's time for me to sell my own property two ways to do it will I Market my own personal property for sale by owner or will I place it with my brokerage firm if I'm selling as a fsbo or if it's listed with my broker which way am I going well I've got some rules if we're going to do it for sale by owner we must remember that the public needs to know that they are working with professional people they've got to know that up front so how do we do it we disclose that agent owner broker owner owner realtor and I must remember if I'm in Property Management this includes rentals must disclose no blind ads we would never want anyone to call a phone number and I pick up and I'm knowledgeable and I have expertise and they need to know when they call that phone number they're calling a realtor professional person no blind ads okay how about when I list it with my brokerage firm and I'm selling my property ownership interests of all sales associate and Brokers Associates also must be disclosed in the multiple listing service and then of course prior to signing the purchase agreement so in my multiple listing service at the bottom where it says owner Marcus a wall comma licensed real estate broker perhaps I even put it in the remark section but definitely in the MLS so anyone who pulls that data knows oh yes that property is owned by a lensey then when the time comes and the buyer is brought forward once again either at the top of the contract where it says seller or perhaps on an addendum Marcus a wall is an actively licensed Florida real estate broker period I've complied with the code I'm a good standing realtor I've disclosed to the buyers that I own the property also under advertising article 12 I get excited about my business I've got to be careful that we don't do something called puffery or exaggeration I'm a salesperson I'm a Salesman and I want people to know about my listings but I must be truthful so I need to be careful that I never exaggerate I had an instance once where a wonderful family listed their house with me and it abutted a city park in St Augustine I can remember the husband saying my children run and play in that beautiful grassy area we have such a large lot for me to include the extra dimensions of that City Park would be a violation and fraud I do not want to mislead anyone to believe that our lot size includes that adjacent land that the city of St Augustine owns So exaggeration I must be careful I can be creative but but I must be honest how about the word free I see that quite a bit today we're always interested in bringing people into our world maybe with a free market analysis comparative market analysis what about I'm offering a free home warranty to anyone who lists their property with me in the month of April it's okay it's okay to give away things for free that's legal as long as it actually is free all parts of the free are disclosed and there no strings attached so we have those examples free market analysis maybe a home warranty I'll let you borrow my moving truck if you do business with me as long as I've disclosed everything and it's actually free and the consumer understands everything I'm good de claring sold we mentioned that it's changed over the years be careful today only the listing and selling broker are allowed to declare that they sold the property we need to be aware if I had a listing with my brokerage and then I left I'm not entitled to declare that I sold that property unless I have permission from The Brokerage company that had the listing and sold told it when I was there be careful about when we change and we move Internet advertising our world today we're successful because of the opportunities that the internet has brought us but with that success and that exposure comes guidance and caution listings on the web are not my property I think sometimes people believe if it's on the Internet it's globally it belongs to any and all of us that's not true each Association and multiple listing service have adopted their idx rules our internet data exchange rules which must be followed linking my site to realtor.com is permissible but if I were to use another association's name or another company's name or their URL and I'm not part of that Association and I'm not a member that could be considered false advertising I'm proud to be a member of the St Augustine St John's County board of realtors for me to take another association's website their address and hyperlink it to mine so that all that traffic comes to me is not right if I'm not a member of that Association if I'm not a member of that company using their domain name which I'm not a part of is a violation talk about business cards we pulled it out to verify our status to distinguish oursel as Realtors well the code does not regulate our business card unless of course it's not truthful article 12 advertising something we use every day those are our good rules thank you let's invest instigate Article 4 article 4 States Realtors shall not acquire an interest in or buy or present offers from themselves any members of their immediate families their firms or any member thereof or any entities in which they have an ownership interest any real property without making their true position known to the owner or the owners agent or broker this is powerful especially in this time where we're investing in our product immediate family how deep do I take that you mean when I'm helping my brothers and sisters and my grandmother I need to disclose my status as a realtor absolutely here's the good definition that n gives us of immediate family how about myself of course my spouse our children our parents our grandparents even our grandparents children by birth or adoption and even grandchildren okay well it seems to be intense but it's the code so you know what we do it if I'm going to be involved with anybody in my family in my tree I disclose it it's not that anyone is ever going to begrudge any of us from buying or selling property they'll be proud they'll feel good that we disclosed our status so those are our guidelines when we talk about immediate family why the disclosure because we're knowledgeable because we're talented because we've gone to school and we have education and knowledge above the general public they need to know that they're dealing with a professional person that has expertise members of the public must know we do have Superior knowledge when we buy disclosing our status with this expertise is our duty I'm writing an offer to buy a property of my own that I want to purchase Marcus a wall is a actively licensed Florida real estate broker it's never hurt me or endangered me from getting a property I just disclose my status so that all parties are comfortable for the protection of all parties this disclosure should always be in writing we're going to talk about that article today that encourages everything to be in writing but most importantly everything that we do with the public should never be relied upon as just verbal don't you remember I told you that I was buying it for my mother then I'm in a situation where I'm relying on verbal and that's not the way to protect everyone my duty once again to protect the public let's put it in writing so there's never a misunderstanding or miscommunication we're back to our good realterm membership and what we we are so proud to be a part of in this great industry and and we should we should sing it out we shouldn't hide it let's do a couple of questions and you tell me how you feel my assistant that's been by my side for a number of years Gwen Lewis unlicensed wants to buy a property now she works with me do I need to disclose that yes you're right I do I need to disclose it works with our firm that was part of immediate family let's do another one the day before a divorce is final should I disclose please yes absolutely it's the day before we're still married you're still my spouse I must disclose spouses part of a med mediate family let's do another one what about girlfriends boyfriends or exes need to disclose no good very good no not at all a mom selling her son a home and tells the seller we're buying this for my son good not good not good exactly and what's not good about it it's that verbal part we need to put everything in writing to protect all parties good article 4 also says that we should disclose our ownership in any interest that we may have to all parties so I own some stock in a corporation that's thinking about selling a track of land that's ownership interest even if it's a very small ownership interest I need to disclose that MLS rules require that my status as a leny be disclosed in the listing paperwork so that when it pops up in the computer all parties know look at there that piece of property is owned by a licensed realtor here's a tough one how about this your wife owns a rental property from her previous marriage I'm not on the mortgage or the deed do I disclose well I think in that instance little little trick it's not homesteaded property let's think about that I married her she owned the property I'm not on the mortgage or the deed it's not a homesteaded property it's a rental so when the property passes I'm not going to automatically be entitled to that as if it were home homesteaded property correct so that one makes me think the answer would be no the answer would be no and it's that key word of rental property I think for those states that have homestead exemption perhaps if it was primary reg residence and Homestead laws and and marriage but in this instance rental property I'm not on the deed or mortgage no need for a disclosure okay how about one more an investment club that you and I are part of deciding to sell a piece of property I'm part of that investment Club I've got an interest do I disclose good job yes absolutely that would mean a disclosure and then I'm selling my homesteaded property my primary residence and we all know that that is an absolute disclosure yes okay I'm selling an investment property a multif family building not my primary residence so is the written disclosure needed yes we didn't mention anything specifically about primary residences any property that a leny owns that status must be disclosed okay and with that thank you article four we have the privilege and honor to have a longtime real estate broker with us this afternoon her name is Linda dicks of Linda dicks realy in Tallahassee Florida Linda has her own company is a licensed real estate instructor and we are proud to have her with us please welcome Linda dicks thank you Marcus good afternoon okay folks let's start all over again here okay we have been talking this afternoon about being so proud of being a realtor haven't we okay what is the number one thing that you think and I've been in this business this month is 26 years I've been doing this I'm sure there's probably some of you out there that's maybe been here longer than me what do you think the number one thing or one of the number one things is that keeps us going enthusiasm folks and let me tell you when you're talking about the code of ethics you should be enthusiastic because this is our livelihood this is what we're all about are we proud to be a real Tor okay let's start all over I'm going to say good afternoon again and I want you to give me a real tour good afternoon good afternoon good afternoon oh I love it thank you very much and let's keep that enthusiasm going here okay what we're going to talk about is going to be article one and article two during my session we're going to