People tend to meet others through their place of business. While a lot of people don’t want to mix business with pleasure, sometimes it happens. In some cases, especially for licensed professionals, it is illegal and unethical to date clients or patients. In some industries, though, there aren’t any rules prohibiting this behavior.
This is true in the real estate field, where agents and brokers will even flirt with clients to seal the deal. Therefore, it’s not uncommon for agents or clients to want to take things further romantically. While there may be no law that tells them they can’t, is it ethical?
The National Association of Realtors bans discrimination, racism, and hate speech. The association also prefers that real estate agents refrain from discussing politics and religion with clients. But there’s nothing banning agents from dating clients, so merely entering into a romantic relationship with a client does not immediately put an agent’s license in jeopardy.
Good real estate agents don’t just talk business. When finding someone a home, they need a lot of personal details. They want to know what kind of home a person is looking for, and that can be an intimate topic. Real estate agents get to know their clients’ finances, emotional states, domestic states, quirks, and specific needs. Therefore, it’s not uncommon for things to get romantic very quickly.
Getting romantically involved with a client can be tricky, though. What happens if the relationship doesn’t last? Will there be hurt feelings? How will that impact the real estate agent’s career? Even when the agent followed all professional standards when representing the client, there is always the risk that the client will become disappointed with the outcome of the relationship and misrepresent what the agent did or did not do.
There are no easy answers to these questions. Therefore, agents need to use their own moral compass and trust their gut. While real estate companies don’t usually have rules about these types of situations, the overall consensus is that brokers should use their best judgment and not get involved in a romantic relationship with a client until the business part is over. Once the home has closed or the lease has been signed, there is much less chance that the relationship could affect the agent’s license.
After all, real estate agents have a tough job. Generally speaking, they are in the hospitality business. They may introduce clients to new neighborhoods and offer advice about restaurants and other types of businesses in the area. When the deal closes, the agent may invite the client to a party or dinner. During the course of the transaction, the two have shared a lot of information with each other. They have spent a lot of time together. If there is an attraction, then having a relationship is naturally the next step.
Keep Your License With Help From a Tampa Real Estate & Administrative Lawyer
While many real estate companies have no rules or limitations about dating clients, agents still need to use their best judgment. Things can get complicated and messy and in some cases, it can impact your career.
Are you facing administrative issues on your real estate license due to ethical issues? If so, contact Tampa real estate broker license lawyer David P. Rankin. I have been involved in several hundred license discipline proceedings before the Florida Real Estate Commission and was the attorney for the Greater Tampa Realtors for 18 years. Call (813) 968-6633 or fill out the online form to schedule a consultation.
Resource:
realestate.boston.com/news/2019/02/14/real-estate-romance/
By David P. Rankin, P.A. | Posted on April 30, 2021
FAQs
While real estate companies don't usually have rules about these types of situations, the overall consensus is that brokers should use their best judgment and not get involved in a romantic relationship with a client until the business part is over.
What is an unethical behavior of a real estate agent? ›
Unethical agents will often use fraudulent misrepresentation to win a listing, sell a property faster, or push for a property to sell faster. Such actions violate ethical standards and are illegal in many jurisdictions.
What is a violation of the Code of Ethics in real estate? ›
REALTORS® having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate Board or Association of REALTORS®. ...
What are the ethical behavior of a real estate agent? ›
act fairly, honestly, in good faith and to the best of their knowledge and ability at all times. act in their client's best interests, except if it would be unlawful, unreasonable, improper or against their client's instructions.
Are REALTORS bound by Ethics? ›
First adopted in 1913 as a lean set of guiding principles, the Code of Ethics has continually evolved as the standard against which all real estate agents are held.
What is the most common complaint filed against realtors? ›
Meseck, the most common complaints involve:
- Septic systems.
- Solar leases.
- Failure to disclose and Seller's Property Disclosures.
- Water rights.
- Miscommunication.
- Agent-owned property and additional supervision.
- Multiple offers.
- Unpermitted work.
Here are five of the biggest challenges real estate agents encounter on their road to success – and how to overcome them.
- Market Fluctuations. Nothing stays the same in real estate. ...
- Fierce Competition. ...
- Long Hours. ...
- Time Management.
Article 10 provides as follows: REALTORS® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.
What is the Article 13 Code of Ethics for REALTORS? ›
REALTORS® shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction requires it. Know what the “unauthorized practice of law” means in your state.
What is the Article 9 Code of Ethics for REALTORS? ›
Article 9: It is the broker's responsibility to ensure that all transaction details are in writing. Standard of Practice 9-2: REALTORS® should make reasonable efforts to explain the nature and specific terms of agreements when using electronic documents.
Ethical issues may arise when agents engage in misleading advertising, exaggerate property features, or withhold information that could impact a buyer's decision. Real estate agents should be diligent in providing accurate and complete information about the properties they represent.
Why is it important to have ethical behavior in real estate? ›
Operating with ethics ensures compliance with legal requirements, mitigating risks and liabilities. This not only protects the interests of the clients but also upholds the integrity of the real estate profession.
What is an ethical practice in real estate? ›
Real estate ethics are the standards realtors must adhere to in order to protect clients and ensure the law is followed. Professional ethics in the real estate industry help preserve the right to use, own, and transfer real property.
What is the Article 15 Code of Ethics for REALTORS? ›
According to Article 15 of the Code of Ethics, REALTORS® are prohibited from knowingly or recklessly making false or misleading statements about other real estate professionals, their businesses, or their business practices.
What does article 16 require REALTORS to respect? ›
The Hearing Panel's decision noted that Article 16 requires a REALTOR® to respect the exclusive agency of another REALTOR®. But, in order to respect the listing broker's agency, the REALTOR® must be able to determine if an exclusive listing really exists.
Is the golden rule in the REALTOR Code of Ethics? ›
“The Preamble to the Code is the aspirational basis for the ethical concepts that REALTORS® believe in. Included are the core concepts of honesty, integrity, fairness, and moral conduct in business relations. Near the end of the Preamble, the timeless, universal principle of the Golden Rule is cited.
What is an example of an unethical practice in real estate? ›
Agents who misrepresent a property, mislead clients or fail to disclose property defects quickly make themselves vulnerable to being sued.
Can a realtor be unethical? ›
Realtors are bound by both the law and their license to be honest and ethical in their dealing with clients. Realtors acting shady or unethical may be violating the law and could be subject to a lawsuit. If a client discovers an issue with a home after signing papers, they might be mad at the previous homeowner.
What can a realtor disciplinary action in an ethics hearing include? ›
Realtors must disclose when they are the owner of a listed property. Some disciplinary actions for violation of codes of ethics include a reprimand/warning letter, probation, or even expulsion from membership.
What is considered misrepresentation in real estate? ›
In real estate, misrepresentation is a lie or reckless untruth that affects the market value of a home or property. A common example of this is misrepresenting the square footage of a property.
