April 2nd, 2018 at 1:18 pm
A. That I cannot talk to him under both legal and Code of Ethics requirements.
B. That I cannot talk to him under Code of Ethics requirements.
C. That he should give me written authorization before we talk.
D. Whatever I would normally say to a seller without an active listing agreement.
Answer: Answers A and B are wrong. First, the law does not prohibit you from speaking with the seller directly. It prohibits you from wrongfully interfering with someone else’s business relations. However, whether you are acting wrongfully depends on what you actually discuss with the seller, not the mere fact that you have a conversation with the seller. Second, the NAR Code of Ethics does generally impose an ethical obligation on you to conduct all dealings concerning property exclusively listed with the listing agent, and not with the seller (Standard of Practice 16-13). This rule, however, has an exception that allows you to speak with the seller if such dealings are initiated by the seller. After all, when another broker’s client initiates communications with you, the Code of Ethics specifically allows you to discuss the terms of a future listing agreement or even enter into a listing agreement to begin after the expiration of the existing listing agreement (Standard of Practice 16-6).
Answer C is the best answer. Before speaking with the seller, you should, as a matter of precaution, ask the seller to send you an email or other written communication confirming that the seller is initiating these dealings, not you. Also encourage the seller to explain in the email what prompted the seller to contact you, e.g. he saw your ad, saw your For-Sale sign, or got a recommendation from a friend.
Answer D is wrong as it goes too far. When speaking with a seller who has an exclusive listing with someone else, you must be very careful not to interfere with that other agent’s listing agreement.
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