It's the Rule

by: President & CEO Terese (Terry) Penza, CAE, RCE, e-Pro

Do you want to be taken seriously as a real estate professional?

If yes, then you must redesign yourself to be an Immediate Response Professional. Did you know that the real estate industry average in answering an email from a potential buyer is 56 hours!?!?!? Those same people are expecting an immediate answer or at least an answer in a few hours, not a few days. Do you know what the threat is today to your business? Businesses that are NOT in the real estate business but know how to respond immediately to emails. Uninformed agents give their listings out to every Tom, Dick and Harry waiving potential money or free websites to you. TDH company takes your listings that you gave away (which you don’t even have the right to do that because the listing belongs to your broker according to the license law), TDH company puts the listings on their web site, potential buyers contact them because you never got around to answering the email for the potential buyer and then TDH company SELLS the referral back to you! YOU ARE BUYING BACK YOUR OWN INFORMATION!!! How smart is that?

Do you think you are still in the touring business? That bus left decades ago. You must have a computer, you must check your email several times a day AND RESPOND.

Finally, if you sign up the buyer and the buyer walks into a open house the agent must first say to the prospective buyer (almost before they even say hello) “Are you a party of an exclusive representation agreement with another agent (hint: in Illinois to have an exclusive agreement it must be in writing)?” If the prospective purchaser says yes then the agent sitting the open house must send them back to the first agent. It is the same as if you had a listing – you know by law you cannot solicit that listing, you can’t talk to that seller. See standard of practice 16-13. Yes, there is more to the standard but it does not say you are to trick the prospective buyer into thinking they can look at the house and they will pay the first agent when that was not your intention.

REALTOR® News
April 2005

One MLS?
A group of representatives from MLSNI and MAP have been meeting to discuss having just ONE MLS. Facilitated by Steve Murray, nationally known. The group came up with the following recommendations. NSBAR was the FIRST to voted to support the concept. As of this writing, RWSSC, West Towns and MAP have all voted the same way. All the remaining associations and MLSNI have until April 11 to cast their vote. Please watch Hot News on the web for the latest information (Quick Links/Hot News).

Based on these discussions and input from dozens of those from sponsoring organizations the Task Force has the following recommendations.

1. A New Entity to be created will acquire substantially all of the assets and assume substantially all of the liabilities of MAP and MLSNI. This New Entity will assume all of the obligations to provide MLS services to Realtors throughout the service area.

2. The New Entity shall be formed as a Not-for-Profit for Federal and State purposes.

3. The New Entity shall be owned by its Members.

4. A Member shall be a brokerage firm regardless of size or type that chooses to invest a sum of money (to be determined) in addition to their normal MLS fees. Members shall solely have the right to cast votes to elect directors and other such normal activities of shareholders including but not limited to receiving dividends (if any).

5. Brokerage firms choosing not to be Members shall be known as Subscribers. They shall have no voting rights in the New Entity but shall receive the same MLS benefits at the same cost as Members.

6. All Members and Subscribers shall be members of the local, state and national Association of Realtors unless competent outside legal authority shall determine otherwise.

7. The Board of Directors shall be composed of 15 individual persons. 13 of these persons shall be broker-owners (or DR’s) from the base of Members. 2 directors shall be elected by the ten (10) Associations now involved in ownership of MLSNI. The terms of all directors shall be developed for further review.

8. A system of allocating board seats according to differing sizes of Members shall be instituted such that there shall be 4 seats for the smallest component of brokerage firms, 3 for the next largest, 3 for an additional segment and 3 for the largest brokerage firms being Members of the New Entity. The exact calculations for these segments will be developed for further review.

9. Capital for the New Entity shall be developed through investments or contributions from those brokerage firms desiring to be members. It is also anticipated that MAP, MLSNI or both existing organizations may make some part of these contributions on behalf of their respective broker members.

10. At the time of contribution the existing MLS operating systems shall remain in place and available to participants in both systems. It is recommended that a system of sharing listing data between both operating systems be devised at that time so that regardless of which operating system is being used Members and Subscribers of the New Entity shall have access to all of the data. Whether or not one operating system is ultimately chosen will be left to the management and directors of the New Entity.

11. That time is of the essence and that these plans are put into place prior to the end of the third quarter of 2005.

Late Fees
Those members calling to reinstate and asking to have their late fees waived must write a letter to the Finance Committee.

Rumor of the month
The new license law states Limited service listings are not allowed in MLS. WRONG! The license law states that brokers who have an exclusive listing (exclusive right to sell and exclusive listings) must provide limited services such as presenting offers. MLS's states that only exclusive or exclusive right to sell listings are allowed. Therefore, any listing in MLS must provide at least limited services outlined in the license law. A broker could take an open listing, would not have to provide limited services BUT would not be allowed to enter it into MLS.

Also, it is illegal and against the Code of Ethics to call the owner direct when the property is listed or is in the MLS. Under no circumstances -- even if you are calling it a FSBO. It is not a FSBO because it is in MLS and only exclusive listings are allowed in MLS.

10-1-04 Illinois License Law that effects each person: (225 ILCS 454/15-75 new)
(Section scheduled to be repealed on January 1, 2010 )
Sec. 15-75. Exclusive brokerage agreements. All exclusive brokerage agreements must specify that the sponsoring broker, through one or more sponsored licensees, must provide, at a minimum, the following services:
(1) accept delivery of and present to the client offers and counteroffers to buy, sell, or lease the client's property or the property the client seeks to purchase or lease;
(2) assist the client in developing, communicating,negotiating, and presenting offers, counteroffers, and notices that relate to the offers and counteroffers until a lease or purchase agreement is signed and all contingencies are satisfied or waived; and
(3) answer the client's questions relating to the offers, counteroffers, notices, and contingencies.