It takes a considerable amount of work to get a client. Once we get one, we want to keep them. In fact, many agents appear to believe they have “ownership rights” to a client that they have worked with in the past.
At the very first meeting between agent and prospect there is a “sizing up” period. Once the prospect selects the agent, that prospect becomes a client to that agent. Over the course of a transaction, a trust on the part of the client is often formed. That trust often extends beyond the initial transaction. How careful is that agent with that trust?
We have only to look at the definition of fiduciary, which is “held or holding in trust”. If you are in San Diego and you have a client who asks you to list their property in Sacramento, you have the license to do it. Yes, it is outside of the area in which you have knowledge. But, the business is a little slow and you really want to help your client, (and earn a fee) so you agree. Are you keeping your fiduciary responsibility to your client?
1. Most commercial “brokers” are not brokers. They call themselves brokers because they broker the deal, but many hold a Salesperson’s license, which actually makes them an agent. By law, a salesperson or agent must hang their license under a broker. A licensed broker can elect to put their license under another broker; however, a salesperson does not have the option.
2. Most “brokers” that work for commercial brokerages without a residential arm are not Realtors. A Realtor belongs to their local real estate board. Historically, the local and national real estate boards have done little to support commercial real estate, though that is changing. Consequently, commercial brokerage houses generally do not join the board of Realtors;
3. A title like Vice President generally means they have achieved a certain level of sales volume, not that they are managers of people;
4. Land is considered commercial real estate;
5. The license for a commercial salesperson or broker is the same as for a residential salesperson or broker. That means that anyone with a license can sell either commercial or residential. However, it is more common for a residential agent to sell commercial than the reverse. Commercial “brokers” understand that the two businesses are very different and would generally prefer to stay within their area of expertise;
