Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-07-30
REAL ESTATE, ITS
BUSINESS ETHICS
p,,v 10 Ills Clients and to
D'V" M. Fellow Dealers Dchncd
In Address.

recent meeting of the Third
Convention OF the National
.''",s,lon OF Real Estate Exchanges
- - Minneapolis. c. F. Harrison
A,'I omaba Ncb. gave an Interesting
-. on the ethics Of the real
ia business, his remarks being In
yart as follows r.
- subject OF real estate ethics
INN. iivides itself into two parts,
srokor's duty to his clients ana
us lroker's duty to his Fellow brokers.
in' y his duty 90 his clients clients
~, Two classes. the buyer ana me
~, The broker owes IL 10 inc
vns, 90 tell him the truth as to any
buyer W. buyer has a right to know
tnlns bnver has a right TO know
'h.r he is dealing With the broker
Nhs' h,oker or as an owner The
has "a right TO buy on his own
us,n, and to sell on his own &C
~, INT 40 not believe good ethics
eVuiS allow him to represent himselt
WOW rolker when he is an owner. IL
~ aid that there Is no conf
Hn,isi relation existing between the
ss,ntsr and the buyer, the confidential
..is,,on OF the broker being with the
Me- and therefore II Is immaterlai
- FAR as the buyer Is concerned
rhe,her the broker Is the owner OF
A not so regard It. l believe
~. vo,ld be a somewhat different
'na.us,,uction placed upon the brokers'
GU n the buyer knew that he was
the owner.
VIZ ,s clear TO me that when the
-, Is selling as owner. he should
Sis"ios. that fact 10 the buyer. The
a., NJ the broker is not clear how
sssy when he has net option upon
ny nroperty and fixes a price upon 1t
s,Asier than the owners price plus
10 ordinary commission Here he con-
,,ols the asking price of the property
s,s vet is not the owner. | would say
%s, when the broker has a net option
W We n. property he is not obligated TO
5srlose this fact, even though he fixes
a mice on the property greater than
49, nrice of the owner plus the or
dnary commission.
mere would be less occasion for the
nopells,lon Of the opprobrious epithet
srplled sometimes to real estate men.
s,s,i estate shark" II the broker al
uays dealt frankly and In the open
with the buyer.
Ths more delicate and important
du,y Of the broker, however. Is to
the seller. This Is more or less con-
sdental relation. II Is I'm this capacity |
hat the broker earns his commits |
slop Here his service Is paid for and !
hsre he owes his best service. He owes |
,vo things to his client. efficiency and |
honesty. both important, but the first |
! probably OF the greater Importance. |
onlv need 10 refer TO the patent |
ACT that more losses have occurred
n real estate investments through |
bck Of efficiency than through lack |
4 honesty on the part OF the broker
d show the above to be true.
Il was said by Mr.. Harmon at our
list convention that real estate was
Ne best investment In the world and
he worst when the trusted broker
Acks efficiency or honesty, or both.
ne great losses sustained In real
state Investments In the boom DAYS
I, the western cities were largely due
. the inericieney Of the broker. to
Bis lack Of scientific knowledge or
aleed any correct knowledge OF his
Nslness The fact that he was honest !
nd went down In the financial ruin I
Nlh his clients made II not better |
,ai he clients.
The day Of Ignorance and inefficient
service on the part OF the broker is
past orat least ought TO be. The real
Siate brokers' business Is assuming the
PISTON OF science. dependent upon
aEs mat are invariable in their action,
rd j Is the duty OF the broker to get
10 date and learn some OF tho things
ipn which his business depends. This
NlIes application. study and obser-
fbn The old idea that anybody
cld be real estate broker and
M who failed In every other line OF
fHness could go into this business
mistaken and exploded notion.
ven the real character of the bust
~ Is considered, there is no business
ven requires better equipment or
IRE close application. II is related
an other lines OF business and TO
Nv Wen requires a knowledge of
N o'ner lines No broker has done
GUY to himself or to his client who J
q not attempted at least to master
Underlying principles upon which !
~ estate values depend and tries 70