Frequently Asked Questions for Coldwell Banker American Homes

Standard Operating Procedure (SOP)

 

 

Who must comply with the new SOP law?

All licensees including brokers, associate brokers, salespersons and teams under the broker, Michael Litzner, of Coldwell Banker American Homes.

 

What is the purpose of the new SOP law?

To comply with Fair Housing and NYS Human Rights Law, all real estate licensees licensed with a Coldwell Banker American Homes, should be treating all consumers the same. 

The NYS Senate held hearings following the Newsday investigation and found there were instances of unequal treatment related to a protected class. This law was passed as a result of those findings and to ensure that all consumers are treated the same by all Realtors.  Unequal treatment of consumers could be grounds for discipline by the NYS Division of Human Rights.

 

If I am the listing agent, does the SOP’s apply to open houses?

As the listing agent, you must act in the best interest of your seller and owe them fiduciary duties.  Those fiduciary duties require you to get the seller’s permission before requiring any item from prospective homebuyers.

Ex: If your seller client is directing you to request a pre-approval prior to showings, you would have that instruction put in writing. You can educate the seller to exclude this request, in writing, from open houses to give them more exposure to the prospective buyer who may not have a pre-approval yet or a neighbor who may be previewing for a friend or family member.

 

Coldwell Banker American homes does not require the three items in the statute, however, may you still ask for identification, offer an exclusive buyer agreement and/or recommend a pre-approval so long as you continue to work with the prospective homebuyer if they choose not to provide what you are requesting?

The short answer is yes but with the condition that all licensees will follow the same procedure.
Example: If a brokerage does not require a pre-approval from a prospective homebuyer, nothing prevents every licensee from recommending the prospective homebuyer get a pre-approval but you may not say “I require it.”  The most important thing to remember is that every licensee must follow the same procedure and it should not deviate from licensee to licensee.  It should be presented as an option the same way with all prospective homebuyers.

 

May an associate broker, salesperson or team have an SOP that is different than the brokers SOP?

No.  All licensees associated with Michael Litzner broker of Coldwell Banker American Homes must follow the same SOP. Individual licensees and teams are prohibited from establishing their own SOP’s.

 

Coldwell Banker American Homes does not require the 3 items from prospective homebuyers but a seller wants to require them prior to a showing, does the prospective homebuyer have to comply?

Yes.  The SOP only addresses a broker’s policy with prospective homebuyers.  It does not impact the lawful directive of a seller that requires a homebuyer to provide a pre-approval or identification. This could also refer to other companies whose seller clients are requesting these items. The seller instructions should be attached to the listing, on MLS, or available upon your request.

Also, in reference to a buyer client, the seller has the right to make these requests in order to see their property. Educating your buyer client to the possibility of a seller’s requests, which may be different than theirs, will leave them to decide to see that property or not.

 

Does this apply to rental and commercial transactions?

No.

 

Best Practice

The purpose of the law is to ensure equal treatment and services for all prospective homebuyers.  Associate brokers, salespersons and teams must all follow the same procedures established by Coldwell Banker American Homes, Michael Litzner - Broker. As a best practice, all licensees should follow the same “conversation” when working with prospective homebuyers.

 

Other Companies SOP

If another company’s SOP differs, example requires photo ID, and a letter from the seller is not attached to the listing or made available who do I contact? 

Answer: Your manager. The main focus is getting your buyer customer and/or client into the home. On your consultation, you already educated the buyer consumer that a photo ID and/or a pre-approval may be needed to see a property (even if our company policy is not requiring it). If you encounter this situation move forward with that request and show the property but let your manager know there were no written instructions.

 

Photo ID

If a letter is on file regarding photo ID are we required to send a copy or just show it at the property?

According to the Department of State - showing ID is requested at the property.

 

In the past, agents have set their own “requirements” – example: requiring a pre-approval.

The word “required” must be removed and replaced with recommend with the explanation of why it’s important to the prospective buyer.