When Realtors Clash: A Cautionary Tale of Cooperation and Reputation

This podcast episode dives into a real-life scenario where two real estate agents, Jess and Bill, clashed over communication styles and professional boundaries. Their disagreement escalated, leading to damaged reputations, lost commissions, and formal complaints, highlighting the importance of cooperation and respect in the real estate profession.

Key Takeaways

• Communication Preferences Aren't Rules: While agents can request specific communication methods, these are requests, not strict rules. Agents must still be accessible and professional.
• Respect Contractual Relationships: Directly contacting a seller without the listing agent's or seller's explicit permission is a breach of professional conduct.
• Reputation is Fragile: Actions taken out of frustration can have significant negative consequences for your own reputation and that of your colleagues.
• Focus on the Client: The ultimate goal is to serve the client's needs. Personal preferences or frustrations should not impede this.
• Follow Proper Channels: When conflicts arise, use established procedures like contacting managing brokers before taking drastic actions.

The Scenario: A Clash of Styles

Jess, a successful real estate agent, prided herself on providing personalized service. Her busy schedule meant she requested all communication through a messaging service called TouchBase to stay organized. Bill, an experienced agent, preferred a more direct, old-school approach. He was helping a long-time client, Carla, find an investment property.

When Bill found a promising townhouse, he noticed Jess's "TouchBase only" note. Frustrated by what he saw as an unnecessary hurdle, Bill decided to call Jess directly to set up a showing. Jess, in the middle of a showing, politely explained her preference, but Bill felt dismissed.

Escalation and Consequences

Instead of respecting Jess's request, Bill took a drastic step: he contacted Jess's client, RAV, directly. He explained his frustration, and RAV, surprised by this, agreed to set up the showing. However, this move backfired. Jess's brokerage received a complaint from Bill's brokerage for contacting a client directly. Bill was reprimanded by his own broker.

Feeling he was being unfairly treated and that Jess had caused the issue, Bill retaliated. He called RAV back and falsely claimed Jess had filed a complaint against him, causing him to withdraw. He told RAV to speak to Jess if he had a problem. This led to RAV canceling his contract with Jess, leaving a negative review, and ultimately selling his property through another agent.

The Professional Conduct Committee's Ruling

Jess, feeling the damage to her reputation and business was too significant, filed a formal complaint against Bill. The Real Estate Board of Greater Vancouver's Professional Conduct Committee reviewed the case. They found Bill had violated several rules:

• Article 20 (Respecting Contractual Relationships): Realtors must respect the agency or contractual relationships of other registrants.
• Rule 6.01 (Cooperating Brokerage Communication): Communication with sellers should be limited to arranging appointments as designated, unless otherwise authorized.
• Rule 6.02 (Appointments): Appointments should not be made directly with the seller unless specified on the listing.
• Rule 6.08 (Professional Conduct): Members shall not falsely or maliciously injure the reputation, prospects, or business of another member.

Considering Bill's experience and the reputational damage caused, the committee imposed a significant fine and required him to attend courses on the Realtor Code, Rules of Cooperation, and Conflict Resolution at his own expense.

Expert Advice on Handling Disputes

Kim Spencer, the "Ethics Guy," offered insights on how such situations could be handled better:

• Requests vs. Edicts: "TouchBase only" notes are requests, not mandates. Agents can ask, but they can't dictate how others contact them.
• Focus on the Client: Remember that the primary role is to facilitate for clients. Sometimes this means doing things that are inconvenient.
• Direct Seller Contact: This is only permissible if the listing explicitly states it's allowed.
• Managing Broker Involvement: When conflicts arise, involving your managing broker is the correct first step for resolution or to initiate a formal complaint.
• Post-Conflict Communication: Even after a dispute, a calm conversation explaining working styles and the impact of certain actions can be beneficial for future interactions, though in this case, the damage was already done.

The episode concluded by emphasizing that while different working styles exist, they should not lead to damaged reputations or professional breaches. Cooperation and respect are key to a healthy real estate profession.