Article 16 Rules Every Realtor Should Know
Members often ask about the ethical boundaries regarding interference with another brokerage’s exclusive representation. The answer is found in Article 16’s Standards of Practice.
ORLANDO, Fla. — Article 16 has driven many calls to the Florida Realtors® Legal Hotline over the years. Historically, members have wondered what’s acceptable when interacting with consumers who have an exclusive right of sale listing (ERS) with another brokerage firm. Now that exclusive buyer brokerage agreements (EBBAs) are more common, it’s even more important to understand what conduct Article 16 prohibits, as well as what’s acceptable.
Most of these calls can be answered by highlighting one of the Standards of Practice (SOPs) that give specific examples of what’s ethical vs. unethical. This article will summarize each SOP as a quick reference guide.
Before we begin, Article 16 is just a one sentence general statement. It provides “REALTORS® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with clients.” Since that’s just a general statement, the SOPs below detail specific actions that are either acceptable or run afoul of Article 16.
|
SOP |
Ethical |
|
16-1 |
|
|
16-2 |
General canvassing of a geographical area, profession, business, etc. (calls, mailers, other marketing), even if exclusively represented parties are part of the general marketing |
|
16-3 |
Contacting an exclusively represented party to provide a different type of service (property management vs. sales, for example) |
|
16-4, 16-5 |
If a broker refuses to disclose the nature of an ERS or EBBA and expiration date, a Realtor can contact their client to get that information. Additionally, the Realtor can talk about terms of a future ERS or EBBA or sign an agreement that becomes effective after the existing one expires |
|
16-6 |
If the client contacts a Realtor unsolicited, the Realtor can talk about terms of a future ERS or EBBA or sign an agreement that becomes effective after the existing one expires |
|
16-7, |
Contacting a consumer who has had one or more past exclusive agreements with a different brokerage firm |
|
16-20 |
Having an agreement between broker and associate about assigning exclusive agreements when an associate leaves to join a new brokerage |
|
SOP |
Unethical |
|
16-2 |
Calling, sending mail, or approaching an owner identified by a yard sign, MLS compilation, or other method that indicates they have an exclusive relationship with another brokerage |
|
16-3 |
Using the MLS to target consumers to offer a different type of service than what’s being offered under an exclusive agreement |
|
16-9 |
Failing to make reasonable efforts to determine whether a prospect is subject to a current exclusive agreement for the same type of services |
|
16-10, 16-11, 16-12 |
|
|
16-11 |
Failing to ask for anticipated compensation from a seller/landlord at first contact |
|
16-13 |
|
|
16-14 |
Knowingly obligating anyone to pay more than one commission unless they give informed consent |
|
16-15 |
Paying or offering to pay associates without prior express knowledge and consent of the broker |
|
16-18 |
Attempting to use information obtained from a listing broker to refer clients to other brokers or to secure buyer/tenant relationships without the listing broker’s authorization |
|
16-19 |
Placing for sale/rent signs on an owner’s property without their consent |
|
16-20 |
When planning a move to a new brokerage firm, inducing clients of the Realtor’s current firm to cancel exclusive agreements |
Joel Maxson is Associate General Counsel
Note: Information deemed accurate on date of publication
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