True or false: The Agent Must Do As I Instruct
Today’s true or false involves an issue that agents have conflicting answers about. Does an agent have to do as instructed? Some say yes, others no. Let’s look at the scenario before we delve into this.
Note: This was asked of the associate brokers I was in class with as we started our class to become brokers. It did not go well.
The Scenario: The Agent Must Do As Instructed..?
You’re looking for a rental or a property to own. You tell the agent that you want to be in a specific type of neighborhood. People who are like you. This could be people from your country. Or people who share your religious beliefs. Whatever the case you only want to see a property in the area that fits your criteria. No matter what. These are your instructions. You have hired this agent. You believe that “The agent must do as I instruct. I will only see properties that fit what I have described.”
Is this true or false? Enter your answer now.
Fiduciary Responsibility
The Agency Disclosure has a section that lists the fiduciary responsibilities of the agent.
Excerpt from New York Dept Of State Agency Disclosure Form
Note: These forms change from time to time. The form shown here may no longer be in use. Nonetheless, your agent is required to show the latest form to you at the first face-to-face meeting.
“A tenant’s agent has, without limitation, the following fiduciary duties to the tenant: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account. A tenant’s agent does not represent the interest of the landlord.”
It is that obedience thing that causes confusion. Does an agent obey the instructions? The short answer is no. You do not have to follow instructions that violate the law.
Violation of Fair Housing Law
This is the United States. You can pretty much do whatever you want except break the law. Obeying the instructions in the above scenario violates the Fair Housing Law against steering. Steering is a federal crime.
What is Steering
Source: https://legal-dictionary.thefreedictionary.com/Steering
Steering
The process whereby builders, brokers, and rental property managers induce purchasers or lessees of real property to buy land or rent premises in neighborhoods composed of persons of the same race.
Steering is an unlawful practice and includes any words or actions by a real estate sales representative or Broker that are intended to influence the choice of a prospective buyer or tenant. Steering violates federal fair housing provisions that proscribe discrimination in the sale or rental of housing.
Breaking Bad?
Put plainly. No one can agree to break the law. Agents cannot agree to show you some properties and not others.
Your agent will present to you all properties that fit your legal description. These include but are not limited to:
- Property size
- Amount of bedrooms, bathrooms
- Front yard, backyard
- Schools nearby
- Mass transit availability
- Pets
- Building Construction etc.
The makeup of the community is not a legal description.
You Choose
Your agent is required to give you all the listings that fit your legal requirements. You decide which ones you want to see. We make it happen.
No law says you can’t steer yourself to a particular area. Should you steer yourself out of a good deal because of your personal prejudice there is no one to blame except yourself.
Disclaimer
Disclaimer: I am not a lawyer and nothing stated here is legal advice. This article applies to the five boroughs of New York. All information is deemed accurate but not guaranteed. Always check the real estate laws in your part of the country.
Comments, Questions, Suggestions?
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