Now We Watch Them
Facts – The broker automatically assigned each agent that was new to the real estate business a coach for their first year. The agent that the broker chose to supervise one of the new agents was not involved in the day-to-day correspondence of the new agent’s real estate transaction and was not properly registered with the Commission to act as a delegated supervisor. Despite this, the selected coach was listed as the agent handling the transaction on the buyer’s representation agreement and contract. The new agent was unsupervised during the transaction. The agent failed to verify that repairs were completed before closing and failed to provide information to the buyers regarding the on-site sewer
Result — The broker entered into an agreed order resulting in a reprimand and a $1000 administrative penalty. The agent handling the transaction entered into an order, which included a reprimand and a $1500 penalty for failing to verify that repairs were completed before closing and failing to provide information to the buyers regarding the on-site sewer. The agent assigned to supervise the agent handling the transaction was issued an advi- sory letter for failing to make his position clear to the parties by listing his name as the agent handling the transaction on the buyer’s representation agreement and contract when he was not involved in handling the transaction.
What could the coach have done better?
Answer: The coach should have made clear to the new agent that the consumer being represented will need to understand the role of the coach in the transaction. The new agent’s name will appear on all listing and buyer representation agreements and contracts. If the broker has a policy that allows the coach’s name on those documents it should appear as the second name. In addition, the new agent’s coach should ensure all transactions be handled with the same diligence and care they would show any client being represented by their broker/brokerage firm. This includes any due diligence to ensure repairs were completed by insisting the listing agent provide all receipts from the seller for repairs performed, provide the scope of the work, and show the work was paid in full. Any and all disclosures required by the transaction should be provided to the buyer
