Investigation of Realtors
This Report from Consumer Reporter Susan Wornick aired 31-March-1997
When looking for a new home .. Realtors act as your guide .. showing you possibilities .. in some cases even helping you get a mortgage.
They're usually very accommodating .. even solicitous .. but despite their friendliness .. they're not working for you .. and they're suppose to tell you that. Consumer Reporter Susan Wornick joins us now with a new report showing many don't.
The Real Estate agent's commission is based on the sale .. so it behooves him or her to get the highest possible price. According to state law .. Realtors are suppose to disclose it up front But in an undercover investigation, the Executive Office of Consumer Affairs discovered .. it isn't happening.
MICHAEL DUFFY, SEC. EX. OFFICE OF CONSUMER AFFAIRS
"IN NONE OF THE TESTS THAT WE DID WASANY DISCLOSURE GIVEN AS REQUIRED BY LAW."
Undercover state investigators visited 45 real estate offices in the greater Boston area and at the Cape.. They found that NONE of them revealed they were working for the seller. Even the investigators were surprised.
ELLEN CASSIDY / INVESTIGATOR
"I WENT TO A PHONE BOOTH AND CALLED THE OFFICEAND I SAID AM I DOING SOMETHING WRONG HEREAND SHE STARTED LAUGHING AND SHE SAID NO ..YOU'RE DOING THE RIGHT THING .. THEY'RE NOT DOING THE RIGHT THING."
A Realtor's commission is based on the selling price of the property .. the more money you spend .. the more money they make. State law mandates that Realtors tell you and have you sign a disclosure form to avoid a conflict of interest.
DUFFY
"IT'S KIND OF LIKE A MIRANDA WARNING ..THAT ANYTHING YOU SAY CAN AND WILL BE USED AGAINST YOU."
But the industry claims the law is unclear .. and they doubt the survey.
ROBERT NASH, EX. V.P. MASS. ASSOC. OF REALTORS
"WE'RE GOING TO HAVE TO KNOW EXACTLY WHAT QUESTIONSTHE INVESTIGATORS ASKED OF EACH OF THE AGENTS ..WE'RE GOING TO HAVE TO FIND OUT IF THE SPIRITOF THE REGULATIONS WERE VIOLATED ORIF THEY WERE ACTUAL VIOLATIONS OF INTENT TO NON-DISCLOSE."
But even Nash admits .. the study is a necessary educational tool in the process of buying and selling a house.
"IT POINTS OUT THE NEED FOR ADDITIONAL EDUCATIONIN THE FIELD NOT ONLY BY ASSOCIATIONS .. BY AGENTSTHEMSELVES .. BY PRINCIPALS .. BUT ALSO BY I THINKOUR REGULATORY AGENCIES OF THE STATE GOVERNMENT."
The state is giving the offending Realtors the benefit of the doubt .. accepting their defense that they didn't realize they were violating the law .. But a recurrence will mean fines .. even license revocations. Another thing you should know .. you CAN get an agent to represent YOU in a real estate deal .. So-called Buyers' Brokers are becoming increasingly popular .. and are listed in the yellow pages in the Real Estate section.
Buyer Beware Copyright (©) 1997 WCVB TV All Rights Reserved.
This Report from Consumer Reporter Susan Wornick aired 31-March-1997
When looking for a new home .. Realtors act as your guide .. showing you possibilities .. in some cases even helping you get a mortgage.
They're usually very accommodating .. even solicitous .. but despite their friendliness .. they're not working for you .. and they're suppose to tell you that. Consumer Reporter Susan Wornick joins us now with a new report showing many don't.
The Real Estate agent's commission is based on the sale .. so it behooves him or her to get the highest possible price. According to state law .. Realtors are suppose to disclose it up front But in an undercover investigation, the Executive Office of Consumer Affairs discovered .. it isn't happening.
MICHAEL DUFFY, SEC. EX. OFFICE OF CONSUMER AFFAIRS
"IN NONE OF THE TESTS THAT WE DID WASANY DISCLOSURE GIVEN AS REQUIRED BY LAW."
Undercover state investigators visited 45 real estate offices in the greater Boston area and at the Cape.. They found that NONE of them revealed they were working for the seller. Even the investigators were surprised.
ELLEN CASSIDY / INVESTIGATOR
"I WENT TO A PHONE BOOTH AND CALLED THE OFFICEAND I SAID AM I DOING SOMETHING WRONG HEREAND SHE STARTED LAUGHING AND SHE SAID NO ..YOU'RE DOING THE RIGHT THING .. THEY'RE NOT DOING THE RIGHT THING."
A Realtor's commission is based on the selling price of the property .. the more money you spend .. the more money they make. State law mandates that Realtors tell you and have you sign a disclosure form to avoid a conflict of interest.
DUFFY
"IT'S KIND OF LIKE A MIRANDA WARNING ..THAT ANYTHING YOU SAY CAN AND WILL BE USED AGAINST YOU."
But the industry claims the law is unclear .. and they doubt the survey.
ROBERT NASH, EX. V.P. MASS. ASSOC. OF REALTORS
"WE'RE GOING TO HAVE TO KNOW EXACTLY WHAT QUESTIONSTHE INVESTIGATORS ASKED OF EACH OF THE AGENTS ..WE'RE GOING TO HAVE TO FIND OUT IF THE SPIRITOF THE REGULATIONS WERE VIOLATED ORIF THEY WERE ACTUAL VIOLATIONS OF INTENT TO NON-DISCLOSE."
But even Nash admits .. the study is a necessary educational tool in the process of buying and selling a house.
"IT POINTS OUT THE NEED FOR ADDITIONAL EDUCATIONIN THE FIELD NOT ONLY BY ASSOCIATIONS .. BY AGENTSTHEMSELVES .. BY PRINCIPALS .. BUT ALSO BY I THINKOUR REGULATORY AGENCIES OF THE STATE GOVERNMENT."
The state is giving the offending Realtors the benefit of the doubt .. accepting their defense that they didn't realize they were violating the law .. But a recurrence will mean fines .. even license revocations. Another thing you should know .. you CAN get an agent to represent YOU in a real estate deal .. So-called Buyers' Brokers are becoming increasingly popular .. and are listed in the yellow pages in the Real Estate section.
Buyer Beware Copyright (©) 1997 WCVB TV All Rights Reserved.
posted by Ron Jensrud at 4:49 PM
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