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NAR Must Add Pro Bono Provision to Realtor Code of Ethics

Published by JF November 11th, 2008 in NAR. Comments

We make a living by what we get. We make a life by what we give ~Winston Churchill

I have been campaigning for the NAR to add a Pro Bono Article to the Realtor° Code of Ethics. It has been a grassroots effort. Thanks to the help and support of Bill Wente, Frances Flynn Thorsen, Sherry Chris, Bill Lublin, Benn and Lani-Anglin Rosales, Scott Forcino, Esq., Jay Thompson, Collen Kulikowski, Kelly Roark, David Steinberg, Larry Yatkowsky and many, many others, a buzz has been building.

    5 Reasons Why It Must Be Done:

1. An iconic brand MUST do more than just sell homes. It must innovate beyond product, be a maverick in word and deed and LEAD by example. NAR ought promote the fact that public service is good for the community, good for the economy, good for business and good for the agent. It will distinguish (and elevate) the brand. Is the Realtor brand iconic? Prove it.


If you cannot feed 100 people, then just feed one ~Mother Teresa

2. The National Association of Realtors must re-establish the fundamental principle that Realtors have a duty to SERVE consumers. This includes consumers who are in real need, not just those with 750 FICO scores. Do not leave any doubt of this.

If you have no charity in your heart, you have the worst kind of heart trouble ~Bob Hope

3. Goodwill. There is no denying Realtors have a bad public image. NAR must raise public awareness of its commitment to public service and benevolence. And let’s be clear about one thing– real estate professionals throughout this great country ARE doing charitable acts– every day– except few know about it. It’s time to tell folks about this good work and encourage others to follow.

No act of kindness, no matter how small, is ever wasted ~Aesop

4. It’s good for business. People who are in need will reach out to those professionals expressing a desire to do pro bono work. After these folks are helped, they will tell others. And they will never forget the good deed. People who are not in need will nonetheless be drawn to professionals whose moral compass is pointed in service to their fellow man. Competence with charity is a compelling message.

Charity sees the need, not the cause ~ German proverb

5. The times cry out for it. Americans have been hit by a financial Katrina. Do not leave them to wait for their government to help them. Let us find ways to keep families (children) in their homes instead of figuring out ingenious ways to make money from their misfortune. The time for pointing fingers is behind us. If, indeed, we, as a people, have voted for Change, let us work for change in the industry which is the foundation of this nation’s wealth.

The existing Realtor Code demands it:

Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor. (Preamble, National Association of Realtors Code of Ethics, 2008)(emphasis added)

Here is a simple starting point:

Voluntary Pro Bono Public Service

Every Realtor who is able has a professional responsibility to provide real estate related services, without compensation, to those unable to pay or of limited means. Every Realtor should aspire to render pro bono service on at least one (1) real estate transaction per year.


You must be the change you want to see in the world ~Gandhi

Let’s do more than just think about it. Let’s do it.

If you support this initiative, add your voice and share this with other real estate professionals, especially those who are in position to effectuate or influence change. I have witnessed bloggers bring about change before.

Related Post:

Pro Bono Realtor (tweet)

Update: YarBuzz has a pro bono poll.

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  • Joe, I'm with you all the way on this one.....
  • Joe,

    I agree wholeheartedly that NOW is the time for change ... congratulations on coming up with the most thoughtful and innovative idea in real estate practice that I have seen since the industry rolled out buyer agency.

    Let's DO it!!!
  • jf
    Thank you Kim. Your support means a lot to me.

    Thanks Frances for being at REBarCamp in SF and making me feel like I was not a lone voice howling at the moon.
  • Good post, sir. I think we are so busy trying to make deals that we don't stop to think about social responsibility as a part of professionalism. Remember how the COE begins: Under ALL is the land.
  • OK. I like the idea.

    How do you implement it? The COE has implications beyond the merely ethical. You can end up in front of local and State Associations for alleged violations.

    How would this apply to Realtors who are, themselves, struggling? It's not always being good and moral even with the loftiest intentions.

    One other thing: since a very large majority of the public has no clue that Realtors even have a COE let alone what it might say and a very large slice of the Realtor population has never read the COE or knows what it says, how does putting something like this in the COE do any good?

    You can't legislate good works. Just curious.
  • I appreciate you like the idea, Ken. How do you implement it? I think
    anyone who has helped another human being in need, without compensation,
    just knew (felt?) it to be the right thing to do. And when we did so, we
    felt uplifted too. Struggling realtors? Yes.. that is why I added "who are
    able" to the language.
    Agree the public does not know about the COE-- perhaps there is a way to let
    them know. If they knew, would they ask a Realtor for help? Perhaps.
    What good will it do? I don't know but would pray more good than harm.
  • Joe,

    I totally agree with you on this. There are no two ways about this and more need to perform. I'm not only on several committees for my associations, but am involved in my community as well. People need to get away from the me-ness of it all & need to look at themselves and their lives. I so strongly believe in giving back and doing so without looking for something in return.
  • Ooops. My proofreading didn't work...

    It's not always easy being good and moral...
  • Joe - you know we support this 100% at BH&G, As Ken points out - it is not always easy being good and moral, but I have to add...it sure is rewarding. What better way to kickstart the next upturn than to build it on a foundation of giving back. I think it runs deeper than an addition to the Code of Ethics, it begins with developing core business values at the individual agent and broker level. Can you imagine the power if our industry was was known and recognized for providing much more than good service... let's get started!
  • Yes, it is rewarding. Your support is greatly appreciated, Sherry. I thank
    you.
  • I too like the idea in concept but i am with Ken on this one.how do you implement it.

    There are many part time agents who only do 1 deal a year. Is it fair to make someone who is struggling do deal for free. I like the idea of helping people, I am not sure I like the idea forcing people to help others. I made a promise to myself to donate to charity in ever increasing amounts every year. I believe in giving back to society. But should the NAR decide how I give back?

    I would love to see some kind of incentive to do this, i am not sure I like the idea of requiring it.
  • It is voluntary Ned and for those "who are able". NAR does not decide the
    "how", you do. There are no pro bono police.
  • mfdaly1
    I'm in!
  • Thank you Michael. Send an email to the influencers you know and let's push
    the buttons.
  • It is correct to say that it is not always easy to be good and moral, but we can certainly try our best. As Mother Teressa said.."If you can´t feed 100 people, feed 1". It´s impossible to help and give to everyone, so we just have to help and give to those we can. Sometimes trying to help means a lot anyway :-)

    Lena
  • RobertaMurphy
    Joe:

    Thanks so much for bringing this issue into full view. I think many Realtors are already doing lots of pro bono work helping homeowners through these tough times--without pay. We do it because we know what to do--and it just feels good to DO SOMETHING. We can't change the credit markets and economic collapses, but we can reach out and do good with our knowledge and connections--and can perhaps help families stay in their homes.

    To incorporate this concept into the NAR Code of Ethics would be a brilliant move--and might become a national campaign for our entire profession.

    How can I help?
  • Thanks for your encouragement and support, Roberta. You can help by passing
    the word, especially to those movers and shakers I know you know.
  • Joe; Though you have my support in spirit- I think the place for the aspiration to do good belongs in the preamble to the Code, not in the Code itself. And while I like the idea of a commitment to pro bono work, I don;t think we can fail to notice the good works done in the real estate industry today. Our firm has been the 2nd largest donor to Easter Seals in Pennsylvania for several years, Century 21 has been Easter Seals largest corporate donor, ReMax sponsor. NAR presents the Annual Good Neighbor Awards, and our local Associations all have charitable commitments - ofr example the Bucks County Association of REALTORS, has built houses through Habitat for Humanity, and the Greater Philadelphia Association of REALTORS has had a long term relationship with Susan Komen Breast Cancer Run, Phila Cares, and supportsToys for Tots as well. I could go on and on, and give you examples of individual contributions like Ginger WIlcox , Drew Meyers, and so many others who were recognized on agentgenius during bolg action day.
  • BTW Joe, if we added something to the Code, then Associations become the Pro Bono police - and as you point out, that really doesn;t work.
    ;-)
  • Yes, you simply can't police voluntary pro bono work-- because it's *
    voluntary*. It's not policed in the legal profession, which does have a pro
    bono section in its Code of Professional Responsibility. But the point is
    NAR will acknowledge that pro bono public service should be a component of
    the profession, setting Realtors apart.
  • I believe every major brand has a designated charity. I totally understand why lawyers need to have human compassion mandated. If one has to be forced by regulation, doesn't it sort of become like, say our "voluntary" tax system? We could fund the NAR-IRS with extra fees on WIFI at the conventions.
  • I suppose a real estate professional's charity of choice is a person they
    feel is in need of help or an organization doing charitable work. I think
    one ought not think in terms of being forced to do public service-- if you
    don't feel it's worth it, don't do it.

    Not sure I understand what would be the penalty for not doing voluntary pro
    bono work. I don't suppose it would be like impoundment of your assets and
    jail for not paying your taxes. Heck, that wouldn't be nice. For example, I
    don't know of any lawyers being forced to do pro bono work , though some
    should be.
  • Here's another question along the "implementation" lines. Generally, it is current homewowners (sellers) who pay commissions. Obviously, in this day and age a lot of homeowners (sellers) are in distressed status.

    How would you choose who to do your pro bono work for? Someone who made a bad decision and bought more house than they could afford? Someone who, by some [to be determined] criteria, was the victim of predatory lending? The elderly who may be downsizing into a nursing home? Do you check financial assets to determine the validity of the need (to avoid being taken advantage of by "system gamers")?

    Or do you just toss a coin, choose some homeowner (seller) at random and tell them, "You just won the lottery! I'm going to sell your house (i.e., marketing, etc.) with no expectation of commission. AND I'll pay the co-op commission from my pocket!" regardless of their financial condition (which I infer is not the thrust of your cause based on the video clip).

    This is a wonderful idea. I'm just not sure embedding it into the COE - voluntary or not - will make a difference. This is the type of thing which comes from the heart not from some sense of professional duty.

    I've actually heard variations of this idea and I can never get my arms around the logistics of it. Selling real estate is not like paying for meals for an NPR fund drive or a church car wash or even representing a client when I don't have to share a fee. In most of the real estate transactions, I'm involved with there is always the co-op agent.

    My. $.02
  • I think you make 5 compelling points, very well said. I think the best implimentation will happen on the Brokerage level, with some guidance from NAR. It still has to be voluntary, but rewarded, much like the way charitable giving is a tax write-off.
  • GretchenFaber
    You've put up one of my favorite songs and artists, and it's definitely a heart-tugger. I'm so in favor of this discussion, and pleased it's taking place. My kids have seen me hand cash over to a single mom with three hungry kids who needed to get across town, they've heard about my client "eric" who after a messy divorce and job loss couldn't pay much more than the co-op to the other agent in his short sale. I even paid for his inspection items to get the house monkey off his back. Yes, this is a worthwhile discussion.
    However, I'm struggling with the words "professional responsibility." That does sound like a mandate to me. I'm a broker with 60 agents, and I see my agents (many struggling too) giving time and money to Rotary, to Children's Hospital and to their clients when need be. Would a mandate like this in the COE change what's in someone's heart? It reminds me of the debate when I was in graduate school about ethics in general. The consensus was that by the time someone is in grad school, they either have ethics or they don't.
    Finally, how do we manage Errors and Omissions insurance? If the agent and brokerage are liable for potential damages or repayment of commissions, could we face a court opinion that says while no commission was actually earned, there are still damages owed?
  • Thank you for your comment, Gretchen (and your good deeds.) The words
    "professional responsibility" were taken from the legal professional code.
    I think they can be read to be mandatory but I know of no case where a
    lawyer was charged with violation of the code of professional responsibility
    for not performing pro bono work. If the powers that be were to impose any
    kind of penalty, it would defeat the purpose, for, as you say, you either
    have the heart or you don't (I'd venture a guess an overwhelming majority
    have it). You can't legislate public service and charity but you can
    establish it as a guiding principle of the profession. E&O insurance would
    still cover individuals who did pro bono work. IMO, if no commission was
    earned, none can be recovered.

    While it is necessary to consider the bad/worst case scenarios, and the need
    to craft language to suit the lawyers, I prefer to consider the wondrous
    possibilities.
  • Joe,

    Legislating kindness is not in the cards.

    The concept is a new low and from a lefty Canadian perspective I hear a little socialism happening here. Not that it's a bad thing. We should all hold hands more often. :>)

    However, In the head long rush to be "do gooders" there may be an unwinding of the cause.

    In support of the concept my hand is up with the proviso that those who desire to provide their services pro-bono or provide any other charitable work can and should do so at their discretion without legislative guidance. As I understand it, there is nothing stopping anybody from selling a house for free. What cannot be assumed is that other parties to a transaction must be willing and not be forced to do the same by decree.

    To you my friend, and to the other kind and giving individuals promoting this I say, legislating this mandate is to invite chaos. Be careful of the can you hope to open.
  • Larry, I can only repeat my comment to Gretchen. Do gooders, like yourself,
    do not need legislative guidance. And none can be forced to public service
    (and none have, as far as I know). If it would make folks feel more
    comfortable and secure from pro bono police then add it to the Preamble-- I
    don't know of the NAR policing "grave social responsibility", "patriotic
    duty" or "honor" (all, arguably, terms for do-gooders contained therein)
  • bradnix33
    Joe, you have a great idea and something that could change the perception of Realtors across the country. However, I almost hope it doesn't work at the NAR level - then I could implement it at my brokerage level and even further distinguish ourselves from the competition.

    I am curious if any broker has thought out a broker level Pro Bono plan. Perhaps some qualifications or parameters?
  • The question was posed a couple of years ago. http://tinyurl.com/3dvkwg
  • I see I was the first to respond on that post and perhaps failed to read the follow-up comments. We have continued to do pro bono work at Maxsell Real Estate. In fact, just yesterday I gave all commissions to the buyer to be used as a 3% down payment on their first home. Her brother will be buying soon and is a VA buyer, I will be helping him in a smaller manner.

    Thanks for continuing to beat this drum!
  • Yes you were. Thanks, Brad for showing it CAN work.
  • Teri L
    hmm.

    Okay, truly not here to pee in your cornflakes..., wait for it... wait for it... BUT,

    >Voluntary Pro Bono Public Service

    Every Realtor who is able has a professional responsibility to provide real estate related services, without compensation, to those unable to pay or of limited means. Every Realtor should aspire to render pro bono service on at least one (1) real estate transaction per year.

    If we must be told be charitable, then, geez louise, god help us. ... It sounds a bit disingenuous. First thing we do, let's kill all the Realtors, (then we can get to the lawyers).

    Yes, let's do nice things for people!
    No, let's not make public proclamations about it.

    Then again, maybe it's just me... :-)
  • I didn't comment to get credit. We never publicize our pro bono work in our local marketplace either. I simply support NAR promoting what already happens. Putting it in a policy would only give substance to an already present fact.
  • Yes, of course.
  • Teri L

    "No, let's not make public proclamations about it.'

    Some 18th Century fellas in powdered wigs thought certain "truths to be
    self-evident" but wrote them down in a little public declaration. Many are
    glad they did.

    Yep, it's you :)
  • Teri L
    >Some 18th Century fellas in powdered wigs thought certain "truths to be
    self-evident" but wrote them down in a little public declaration. Many are
    glad they did.

    Um, yes, ::hand raised:: So very happy they did!
    But I'm not inclined to equate the NAR with some 18th Century fellas in powdered wigs who changed history... So,

    >Yep, it's you :)

    It usually is, and whaddya know- I'm perfectly okay with that! :-D
  • I am equating putting principles or beliefs in writing. Whether it's NAR, Ben Franklin or Ben & Jerry is irrelevant.

    Maybe changing history comes in different ways.

    Thanks for being you.
  • Teri L
    >I am equating putting principles or beliefs in writing.

    Okay Joe, fair enough. I'm looking at this from a completely different place, and still find the whole thing disingenuous but that really is me, and I get that.

    >Maybe changing history comes in different ways.

    Joe, if we never agree on anything else, on that we are eyeball to eyeball! :-)
  • RealEstateCafe
    Joe,

    Thanks for seeding this discussion; and Bill Lubin and others, thank you for highlighting the wide range of charitable causes real estate brokerages and agents are already championing.

    Is anyone doing anything for World AIDS Day (12/1/08), or open to a voluntary industry-wide proposal? Does anyone remember when Pastor Rick Warren's asked this question during the presidential debates?

    "...there are 148 million orphans worldwide, would you commit to a plan for them, as Bush did for AIDS?"

    Realtors alone cannot implement an emergency plan for AIDS orphans, but they can INVITE MILLIONS OF CLIENTS to make donations to existing non-profit organizations through an annual, friendly fund raising campaign using profits or savings from real estate transactions online.

    Think of it as a real estate version of (Product)RED.

    If you are interested, please take 10 minutes to flip through this slide show:
    ASAP: AIDS Shelter Alliance Partners
    http://tinyurl.com/563q6l

    If you're prepared to do something quickly before World AIDS Day, would you be interested in participating in some kind of visibility campaign at the Harvard / Yale Game this year to let 40,000+ alumni know they can save money on real estate transactions while savings lives?

    If you are interested in adapting this idea for your company or local market during 2009, please watch the video and scan
    the proposed annual, friendly fund raising competition on this wiki. DRAFT Pledge Challenge forms for alumni or city-wide fund raising campaigns can be downloaded from the site:
    http://realestatecafe.pbwiki.com/SaveASAP

    One way to expand ASAP's impact, or any other charitable campaign, is to partner with existing funding sources. For example, David Rockefeller recently donated $70 million to Harvard to support international learning experiences. Part of that was set aside to seed new ideas through the President's Innovation Fund for International Experience. Imagine the fund raising potential of the proposed ASAP campaign if every donation made by a home buyer or seller was matched by the Innovation Fund to subsidize student volunteers working with AIDS orphans.

    That's just one idea. Add your dream project, or your favorite cause or charitable campaign to this fledgling social network for
    ePhilanthropy and Cause Marketing in Real Estate:
    http://ChangeAgents.ning.com

    Thank you for considering this idea starter, and please continue to share your own.

    Bill Wendel
    617-661-4046
  • Thanks Bill for your support. You are indeed an inspiration to those of us looking for innovative ways to wed commerce to charitable causes.
  • RealEstateCafe
    Thanks, Joe. Looking for several real estate sponsors, companies providing rebates or traditional brokerages, for an event vehicle at the Harvard / Yale game. A local ice cream truck vendor is willing to give away 1,000 ice cream bars to kids at the FanZone, hoping parents make a small donation to Harvard's WorldTeach program to support their program in Kenya:
    http://www.worldteach.org/programs/kenya_year/

    Harvard Sports Marketing would like a written proposal by Monday or Tuesday. As stated above, the goal of the event vehicle is to let 40,000+ Harvard & Yale students and alumni know they can save money on real estate transactions while savings lives. At a minimum, real estate sponsors could have a banner on the ice cream truck and distribute literature. I can send a video proposal to anyone interested.
  • Jon
    It is voluntary Ned and for those "who are able". NAR does not decide the
    "how", you do. There are no pro bono police.

    Is there any concern that the public (consumers) might have have an opinion as to "who are able" to do work for free? Other agents, the public or attorneys could be the pro bono police.

    Don't get me wrong ~ I am all for agents doing charitable work if the choose. This is not something that needs to be a part of the Realtor Code of Ethics.
  • I can only speak as a lawyer with a pro bono provision in our professional
    code. Folks will ask and, if a lawyer is able, he or she will take on the
    case for free OR refer it to a firm that has a pro bono dept. (many firms
    have them). I am unaware of any lawyer being disciplined, by anyone, for
    NOT doing pro bono work. As I see it, real estate professionals already DO
    IT, despite a code without it as a (fill in the blank) of the profession--
    which is admirable and should be celebrated. Putting it in the code is one
    way, IMO, to celebrate it. I do, however, respect your opinion not to
    include it in the COE. That's what makes this country great-- freedom of
    thought and opinion. Thanks, Jon for contributing your voice to the
    discussion.,
  • Joe,

    Your continued coverage of cause marketing in real estate has been a Godsend. Hope readers and consumers turn this "open source" fund raising idea into a nationwide, voluntary coalition -- won't be long before there is a real estate version of (Product)RED!

    Real Estate Cafe, Altos Research & Charitable Marketing
    http://tinyurl.com/5luow7
  • timandjulieharris
    This is perfect....love this post.
    Great job!
    Just today...Julie and I held a 60 minute teleconference on this topic. You are so correct that this market is about being of service to others...
    Here is the link to the teleconference:
    http://timandjulieharris.com/2009/10/01/hreu-4t...
    Hope this helps!
    Tim
  • Thank you Tim (& Julie). Yes, your teleconference helps. We will get there.
  • timandjulieharris
    Would you be interested in re-posting a version of this on our blog?
    http://www.TimandJulieHarris.com....

    Links backs etc?

    In any way that we can..we would love to see your intention become the new way of thinking for our industry.
    Tim
  • Sure. Take what you need.
  • timandjulieharris
    Hi,

    Please send me this post with enough alterations so that Google does tag it as DUP content....if you don't have time to do this...I can write and intro on our blog that leads to your post.

    You tell me.
    Tim
  • If you don't mind.
  • timandjulieharris
  • My profound thanks. I know where your moral compass points. (your clients must know it too)
  • Bob Wilson
    I dont need a Code of Ethics to dictate charity. I have done a lot of pro bono work thru the years. Part of the satisfaction is knowing you did something for the right reasons, not for accolades or to meet a quota. I certainly do not want to see my choice of "Do pro bono work" to be scrutinized on an ethical level by the same clowns who tell me I am unethical because I say "Search MLS listings" on a website.

    My suggestion is that we rewrite the Code Of Ethics entirely. In fact, I already have. Here it is. feel free to reprint and distribute:

    Article 1
    Do what is right.

    Article 2
    If you need a definition of Article 1, find a different industry.
  • Quite rightly, charity is a noble act to a fellow human being. Should not a Code of Ethics include it to help define a professional?
  • Bob Wilson
    Noble and charitable have nothing to do with being professional or ethical.

    Would you define Warren Buffett as professional? Prior to Bill Gates convincing him to donate much of his fortune to charity, Buffett was considered by many to be a stooge based on the amount of his charitable giving. Gates, on the other hand, has been sued and chastised as being ruthless in business, but he has given more than any man in history.

    You are going about this wrong. You don't dictate or legislate character based behavior. You create opportunity for it to be exercised.
  • @Bob Wilson: "Noble and charitable have nothing to do with being professional or ethical."

    IMO, each profession ought to decide the parameters of its own ethical or moral character. If you think pro bono work, though noble and charitable, should not be an ethical principle for the real estate professional, by all means, leave it out. Perhaps I am naive to think real estate professionals are more akin to legal professionals than software makers in the heights to which their ethical principles should rise and be acknowledged in their respective Codes of Ethics.

    [Re: Buffet and Gates, I am unfamiliar with their written Code of Ethics.]

    Under your COE, Article 1, is it "right" to rebate a portion of your commission to the client? If it is right, is it right to rebate the whole thing? If so, then perhaps your simple COE has a pro bono provision contained in the word "right." I applaud it.

    "You don't dictate or legislate character based behavior. You create opportunity for it to be exercised."

    Exactly. If it is in the COE you have created the opportunity for it to be exercised.

    [BTW, there is no pro bono police force to judge your charity, contemplated in my proposal. ]
  • Bob Wilson
    @Joe:

    [Perhaps I am naive to think real estate professionals are more akin to legal professionals than software makers in the heights to which their ethical principles should rise and be acknowledged in their respective Codes of Ethics.]

    The problem with this type of communication is that I can't see if you wrote that with a straight face.

    If one needs proof that pro bono work has nothing to do with ethics, morals and character, you only need to look at the number of attorneys fronting loan mod companies that have ripped off 1000s of desperate homeowners.

    [BTW, there is no pro bono police force to judge your charity, contemplated in my proposal. ]

    Then, with apologies to Captain Barbossa, in your opinion, "the code is more of what you'd call "guidelines" than actual rules".

    However, we know that not to be true. We have boards and mls entities suing agents and policing and shutting down their online businesses, using the "violating the NAR COE" as the authority to do so.

    [If it is in the COE you have created the opportunity for it to be exercised.]

    No. The Code does nothing to create opportunity. More importantly, it does nothing to facilitate it once the opportunity has presented itself. As one mentioned earlier, we have E & O concerns. We also have large brokers where fee upon fee has been added to the transaction, by the broker, to be passed to the buyer or seller. Buffett's Pru Cal in SoCal is an example. I believe there was a lawsuit in Georgia over this as well.

    It took a court a to force a brokerage to stop this. Was not that type of behavior (charging a fee for doing nothing extra) already covered by the Code? The Code cant keep these guys from overcharging, yet you think it will do something in the opposite direction - working for free (in the eyes of the broker)?

    If you want to change perception, you dont make it forced behavior from the top down. You have the industry players (not NAR), create the mechanism to facilitate it. You need the big brokers to be willing to waive the commission (remember, its paid to the broker, not the agent).

    Take it a step further and meld your industry pro bono work with mine. Provide me a list of attorneys by state who are willing to represent homeowners pro bono and we'll match them up with brokers and their agents who want to handle the real estate part pro bono.

    I have donated commissions (less the broker split and fees), painted houses, built rooms, etc for many clients over the years. I didnt need an industry code to do so. What would help is for the industry to make it easier for me to do so again.

    The biggest problem with this debate is that to oppose it based on it being a part of the COE is that the response is like being asked "Are you still beating your wife"?
  • And the answers to my question re your "act right" COE are...
  • Bob Wilson
    When and where appropriate. Perhaps my version needs a rewrite to add "Do no harm".

    The point is that there doesn't need to be a provision to do something good for another. Many people do and many people dont. It happens every day in this business. Those that live this way tend not to advertise it.

    I would prefer to see you leverage the likes of Sherry Chris. Her comment, "I think it runs deeper than an addition to the Code of Ethics, it begins with developing core business values at the individual agent and broker level.", is the key.

    Adding it to the Code is merely symbolic.
  • "When and where appropriate"

    I take that as a yes to my questions re: full rebate under your "do right" COE.

    So, if under your COE, a rebate of all your commission, when and where appropriate, is "doing right" (and also "doing no harm"), that appears to be noble and charitable. It appears to be pro bono. Hence, we seem to be in agreement on "doing right" being ethical and capable of including pro bono acts.

    Where we seem to disagree is you prefer a COE that says "do what's right" and not pro bono because it will make pro bono forced behavior (hmm..doing right sounds forced too). I think if it is forced, there is no debate as I am against forced pro bono (and forced "do what's right" under your code).

    "Adding it to the Code is merely symbolic."

    Hmm.. I can live with that. Can you?
  • Bob Wilson
    If you are against forced pro bone, then why add it to the code. If you are against forced "do what is right", then why a Code at all?

    You and I see this as 'more like guidelines'. NAR does not. My objection is leaving anything subjective up to NAR.

    By my definition of ethical behavior, a vast number of real estate contracts written in CA are unethical, clearly violating the fiduciary duty owed to the buyer. The primary example of this is where the buyer's agent insists on having the buyer remove their contingencies, instead of waiting for the seller to issue a notice to perform (most sellers dont as they are afraid of losing the buyer).

    This 'sales tactic' is pushed by brokers and even NAR endorsed trainers.

    I guess if I really examine this issue, I see the COE as utterly useless as a tool to improve public perception. It didn't do anything to prevent the abuses of many who supposedly adhere to the code simply because they write a check to NAR every year.

    The reason I have a problem with the symbolic issue here is that I believe that many will stop there, content with the token gesture they can point to and hide behind.

    I would prefer a separate group that advocates this from the broker level. One where the ability for an agent to do this facilitated. Where the broker is a stakeholder in the act. Waiving the split, absorbing or splitting the E&O premium, etc.

    NAR cant change the perception of the industry with a token gesture. The industry has to do it on their own with real actions, apart from NAR.
  • Why have a COE if you think it serves no purpose?

    I believe it does, to real estate agents and brokers who take the profession seriously. If they don't take it seriously, I say we enforce your COE Article 2: Find a different industry.

    Fear of the pro bono police is not reason enough to convince me to exclude what we agree is "doing what's right, when and where appropriate".

    Charity police by NAR? That's just plain laughable. They will instead celebrate the instances where pro bono service changed lives, increased business and raised respect for the industry. Makes more sense than arresting non-compliers.

    "Positive thinking will let you do everything better than negative thinking will." ZIg Ziglar
  • This is an interesting concept, but it has to come from the heart not an effort to change the public's perception of our profession. When I close a client who is financially stable I give to the charity of their choice rather than giving them a gift. I had considered making it part of my marketing that I will give a portion of my commission to the charity of my client's choice, but considering the economy I think many of my first time home buyers consider themselves a worthy charity. I also have trouble using philanthropy as marketing.

    I would participate in a no fee deal per year, but as I said it would be from my heart, not an effort to make myself stand out. What are your thoughts?
  • Bob Wilson
    Carolyn gets it.
  • Yes she does.
  • Yes, I agree that charity ought come from the heart. (It feels better)

    Perhaps showing the charitable work real estate professionals are doing will change the public perception of the profession. Perhaps not-- but I'd rather think positively that it will. It may also encourage others to be creatively charitable. Let's try it and see.

    Charity or cause marketing does work. You don't have to announce it if you don't care to-- those who are the beneficiaries of your good work will spread the word, as will witnesses.

    BTW, I appreciate your good works. You don't have to tell anyone; I will. Why? Because good works, and those that do it, should be celebrated. Just my opinion.
  • @bob

    BTW, I love your idea about putting pro bono brokers and attorneys together. Maybe we can do it here: http://goodsamrealestate.com/
  • ziaobxtweets
    "Charitable" includes volunteering outside our industry; offering help or a tip or more without intent to solicit business spreds market information, interprets market conditions and, in the end, calms the local market's psyche. So many hours spent with those who don't realize they are equal and deserve the opportunity to contribute to their local economy / market and their self worth improves life....sound like another interpretation of Pro Bono to me.
  • Absolutely.
  • This is an interesting concept, but it has to come from the heart not an effort to change the public's perception of our profession. When I close a client who is financially stable I give to the charity of their choice rather than giving them a gift.
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