28 min

Is Fiduciary Just Another 9-Letter Word‪?‬ Real Estate Appraisal Between The Lines

    • Karriär

Episode 024 - Is Fiduciary Just Another 9-Letter Word?
“Fiduciary” is not just a term you learned in pre-licensing class. The word has significant meaning to your client, your business, and your license retention. Outside of the legal issues that can come about if you don’t follow through with your agency duties, the longevity of your business depends on taking care of clients from A to Z.
Agents, do what all the cool kids are doing! Take care of your clients, act as their fiduciary, and I promise your business will thank you!
 
SHOW NOTES
02:30 – After the enthralling discussion about Star Wars LEGOs, toy stores and commercial jingles, we finally get started. 03:20 – Song of the episode: “Spoonful of Sugar”; Swallow our “medicine” as agents to do what we must. The sugar is when we receive loyalty from our clients. 04:45 – “Fidelity Fiduciary Bank” and Dick Van Dyke played the roll of the bank’s president 05:49 – Pre-licensing included a huge discussion about agency. Clients hire us for a reason. 06:40 – Think about your relationship with your doctor or attorney and how you like to be treated. Treat your clients the same way. 07:23 – Cate: Expectations of confidentiality. Clients “pour their hearts” out to you. 08:08 – Reminder of what Fiduciary means: you are an agent that has been hired by your client to perform a service and the agent is the client’s fiduciary. Fiduciary defined: faithful servant; involving trust. Ethically acting in another’s best interest. This is the law. 09:10 – Cate agrees with B…as expected. 09:18 – Technical piece: COLD-AC; Care, Obedience, Loyalty, Disclosure, Accounting, and Confidentiality. 10:20 – Care: how do you take care of your client? Can you take care of your client? Example: residential agent wants to get involved in a commercial transaction. You like cannot take care of your client in that transaction. Do not think about your commission. Think about your client, their needs and can you help your client. 11:45 – Disclose to your clients some options: 1) refer to another agent; or 2) align with another experienced agent to work together (share commission) to take care of your client. 12:35 – Cate: it becomes a “win-win”. You learn something new; you get some of the commission; and you take care of your client. 13:02 – Many other examples: mortgage, inspection, etc. What do you need to learn? What are your limits? Ask questions and take care of your client. 13:45 – Cate: B knows everything. Do you know the meaning of obedience? Doing what your client asks. Does not apply to spousal issues. 14:30 – Loyalty – putting my client ahead of everyone else. Putting my client’s best interest ahead of my client. My commission is not more important to what my client needs. 15:00 – You can other clients, but you are working only for one in each transaction. Where do your loyalties lie when you represent both the buyer and seller in the same transaction? You cannot have loyalty for both. 15:43 – Legal example: divorce; one attorney cannot represent both divorcing parties. 16:00 – Cate: “I’m looking out for your needs above and beyond anyone else’s, including my own.” 16:18 – Disclosure: if I become aware of any information, good or bad, that would affect my client, I am required to tell them about it. Examples: defect, zoning issue, etc. 16:45 – Accounting: monitor the financial aspect of the transaction, such as closing statements, lender charges, and also handling earnest money receipts and deposits. Commingling and conversion. 17:10 – Confidentiality: privileged information stays confidential. You don’t tell anyone…EVER! Same as “attorney-client privilege” and “doctor-patient privilege.” 17:36 – Cate: FOREVER…even if they gave you information 5 years ago. You take it to your grave. 17:50 – Movie that B cannot remember…The Firm. “You are ship out to sea and never find a port.” 18:35

Episode 024 - Is Fiduciary Just Another 9-Letter Word?
“Fiduciary” is not just a term you learned in pre-licensing class. The word has significant meaning to your client, your business, and your license retention. Outside of the legal issues that can come about if you don’t follow through with your agency duties, the longevity of your business depends on taking care of clients from A to Z.
Agents, do what all the cool kids are doing! Take care of your clients, act as their fiduciary, and I promise your business will thank you!
 
SHOW NOTES
02:30 – After the enthralling discussion about Star Wars LEGOs, toy stores and commercial jingles, we finally get started. 03:20 – Song of the episode: “Spoonful of Sugar”; Swallow our “medicine” as agents to do what we must. The sugar is when we receive loyalty from our clients. 04:45 – “Fidelity Fiduciary Bank” and Dick Van Dyke played the roll of the bank’s president 05:49 – Pre-licensing included a huge discussion about agency. Clients hire us for a reason. 06:40 – Think about your relationship with your doctor or attorney and how you like to be treated. Treat your clients the same way. 07:23 – Cate: Expectations of confidentiality. Clients “pour their hearts” out to you. 08:08 – Reminder of what Fiduciary means: you are an agent that has been hired by your client to perform a service and the agent is the client’s fiduciary. Fiduciary defined: faithful servant; involving trust. Ethically acting in another’s best interest. This is the law. 09:10 – Cate agrees with B…as expected. 09:18 – Technical piece: COLD-AC; Care, Obedience, Loyalty, Disclosure, Accounting, and Confidentiality. 10:20 – Care: how do you take care of your client? Can you take care of your client? Example: residential agent wants to get involved in a commercial transaction. You like cannot take care of your client in that transaction. Do not think about your commission. Think about your client, their needs and can you help your client. 11:45 – Disclose to your clients some options: 1) refer to another agent; or 2) align with another experienced agent to work together (share commission) to take care of your client. 12:35 – Cate: it becomes a “win-win”. You learn something new; you get some of the commission; and you take care of your client. 13:02 – Many other examples: mortgage, inspection, etc. What do you need to learn? What are your limits? Ask questions and take care of your client. 13:45 – Cate: B knows everything. Do you know the meaning of obedience? Doing what your client asks. Does not apply to spousal issues. 14:30 – Loyalty – putting my client ahead of everyone else. Putting my client’s best interest ahead of my client. My commission is not more important to what my client needs. 15:00 – You can other clients, but you are working only for one in each transaction. Where do your loyalties lie when you represent both the buyer and seller in the same transaction? You cannot have loyalty for both. 15:43 – Legal example: divorce; one attorney cannot represent both divorcing parties. 16:00 – Cate: “I’m looking out for your needs above and beyond anyone else’s, including my own.” 16:18 – Disclosure: if I become aware of any information, good or bad, that would affect my client, I am required to tell them about it. Examples: defect, zoning issue, etc. 16:45 – Accounting: monitor the financial aspect of the transaction, such as closing statements, lender charges, and also handling earnest money receipts and deposits. Commingling and conversion. 17:10 – Confidentiality: privileged information stays confidential. You don’t tell anyone…EVER! Same as “attorney-client privilege” and “doctor-patient privilege.” 17:36 – Cate: FOREVER…even if they gave you information 5 years ago. You take it to your grave. 17:50 – Movie that B cannot remember…The Firm. “You are ship out to sea and never find a port.” 18:35

28 min