The Risk of Representing Family Members and Friends.

by | Jun 26, 2015 | Legal Tips

Many real estate agents will represent a family member or friend during their real estate career. When doing so, please remember that you must follow the same policies and procedures of the company as well as adhere to all to local, state and federal laws. It is very easy to cut corners with family members and friends and not get the proper documentation timely executed. It is equally easy to find yourself providing client services when you simply start out answering questions.  While it is likely that your family member or friend would never “rat” you out for not following rules and procedures, there remains significant risk in not doing so.

Where most agents find trouble is when a dispute occurs with the other party to the contract. When the other party files a grievance, the Real Estate Commission’s investigator will request copies of agency, representation agreements and contracts. When the investigator discovers that you provided client services to your family member or friend prior to entering into agency or getting a signed representation agreement, you likely will be subject to discipline.

Your best protection is to always follows the rules regardless who your client or customer is. Your family members and friends will appreciate you and your professionalism.

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