Omaha daily bee., 1910-02-06

with varlous points connected with the
business. The one recently read by MIR.
c. +. Harrison on Real Estate Ethics
follows;
In this paper l have attempted to answer
a few simple questions that are common
to all OF us and make no attempt to lay
down general rules governing the relations
of real estate agents. / have purposely
refrained from any discussion Of the rela-
ton Of the real estate agent to his client,
except as II is incidental, for the reason
that another OF our members is to present
a paper upon that branch of real estate
ethics. A number OF questions have been
asked by members and an answer to these
questions practically covers all the points
which l will try to discuss.
IL one agent learns that a piece Of real
estate is for sale by seeing the sign Of
another on 1t, has the first agent the right
to go TO the owner and get the sale OF the
property direct7 Answer-Yes, for the sim
pie reason that an agents sign on prop
erty does not mean that the agent has
exclusive sale OF the property. The only
way for an agent to protect himself is to
have a contract with the owner, giving
him the exclusive right to offer the prop
erty. The answer would be the same If
one agent learned that the property was
for sale through an advertisement of an
other agent. Some of my friends have
questioned my opinion on this matter, but
l am sure a little consideration will show
anyone that this is the only safe course
for the second agent to pursue. To take
a practical case, suppose that Agent A
had his sign up on a piece of property
which Agent B wished to buy. Agent A
Is not sole agent, but Agent q also has
the right to sell the property. While Agent
B is negotiating for the property through
Agent A, Agent Q sells 1t to another party,
which he has q. right to do. Agent Il not
only loses his commission, but is put in IN
embarrassing situation because his cleint
has made arrangements to purchase the
property in good faith and is disappointed
because what Agent b offers him, he can
not deliver. 1t is very plain also hat the
case woul be entirely different IL there
was a rule among agents to put no signs
upon property or advertise 1t unless the
property was in their hands exclusively.
1 understand that in Missouri It is a mis-
demeanor for an agent to offer property
unless he has the sale Of 1t from the owner
In writing.
Another agent has a case Of this kind.
An outside agent sends him a printed list
of descriptions OF properties and lands. On
examining the list. this agent finds that
some Of these lands are his own, or lands
which he exclusively represents. He asks
what is his relation to the outside agent
offering the property to him
This brings up the question which might
as we'll be considered now, whether an
agent should always offer original lists or
whether he has the-right to select the
property second hand from other agents
lists, then present them to the public or
to other agents. This question also in
wolves another more important one, namely:
How far is the agent bound in good faith
to recognize any list that is referred to
him by another agent when later, without
solicitation on his part, this same property
Is referred to him by the owner direct.
This also suggests another interesting
matter: How far is an agent bound in
good faith of his fellow agents not to sell'a
piece Of property to a customer, because
he knows that the property has already
been offered to that customer by another
agent. You will note that these agencies,
sub agencies, secondhand lists and general
offering of properties to customers lead
to a good deal OF difficulty in adjusting
the ethics Of the commission.
Going back to the first point, namely,
should an agent refer to his fellow agents
and to the public, lists that are not orig
inal, / would say it would avoid much
difficulty If an agent only referred to other
agents and to the public, his own original
lists, but l have no fault to find with the
practice of one Of our best agents, who
frequently advertises a list of bargains
that are, in many cases, second hand, as
far as he himself is concerned, and yet
by means Of which, he makes very desir-
able sales. In this way. the agent REIN
forces by his personal opinion the value
OF, a bargain OF another agent and / see
no objection to 1t from a standpoint of
real estate ethics. This course, however,
may lead to difficulty in some cases in
the adjustment Of the commission.
Referring to the second point, is an agent
bound to refrain from selling a customer
because he knows that the property has
already been referred to him by a fellow
agent? Considering the frequent, general
presentation of property to customers, that
is, where the agent takes his customer all
over the city and points out practically
everything that is on the market, in a gen
eral way 1t would be hardly proper to
say that, because one agent had shown the
customer the whole town or all that part
of it that was for sale of a certain char
acter that no other agent could single out
a piece of property and sell this customer,
because he had already, in a general way,
been offered the property. The better
opinion, l think, would be that any agent
should be allowed to sell any customer he
could, not being restricted from making a
sale because the customer had, in a general
way, seen the property before, / have a
client who has taken the position as a
customer that he owes no obligation to an
agent, because that agent simply, in a
general way, shows him a piece OF prop
erty, but he has the right to buy that prop
erty from any agent who really singles his
attention upon II, and leads him to pur-
chase il. This is undoubtedly the only
rule In the matter. You can see, however,
how the ethics of a case of this kin shade
into what might be called the eouTtesies
between fellow agents, While It would be
proper for me to sell another agents GUS
toner II the customer is willing to buy of
me, though j knew that the other agent
had really laid the foundation for the sale.
yet II would not be courtesy for me to do
so. ] think It would not be discourteous
to sell a customer who had been shown
the whole city or all properties of a GER
tain character In the whole city without
- Il ---HN