Monmouth County Association of Realtors® - Monmouth/Ocean MLS

About MCAR

 
As of February 1, 2006, both Exclusive Agency (EA) listings and Exclusive Right to Sell (ER) listings will be part of the IDX Data Feed.  Each Broker/Owner has the ability to allow or disallow the showing of the EA and/or ER listings on their individual web sites.

This notice is being given in accordance with a Consent Order entered into with the Federal Trade Commission, the full text which can be found at the following

Federal Trade Commission Complaint & Order

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CONTENTS

• About MCAR
• Who We Are: The Monmouth County Association of REALTORS®
• Why Use a REALTOR®?
• Who Does My REALTOR Work For?
• The Real Estate Brand: The REALTOR®
• Using a REALTOR® in the Home Purchase
• Using a REALTOR® in the Home Sale
• Glossary Of Terms

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About MCAR

What is the Monmouth County Association of REALTORS®? Who are our members, what services do we provide and why are we Monmouth County’s expert resource for real estate information? Follow the links to find out.

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Who We Are: The Monmouth County Association of REALTORS®

The Monmouth Association of REALTORS® (MCAR), founded in 1936, is a trade association serving about 6,500 REALTORS® and over 10,000 MOMLS (Monmouth/Ocean Multiple Listing Service) users. MCAR members participate in about 18,000 real estate transaction every year.

As one of the largest local associations in the tri-state area, MCAR publishes the Monmouth REALTOR® Forum newspaper, a weekly blast fax to its member brokerages and this homepage.

The Monmouth County Association of REALTORS®’ purpose is broad in scope and includes: establishing and maintaining high standards of integrity, honor and character among its members, protecting the public’s right to buy, own and transfer real property and promoting better public understanding of the profession and the real estate transaction process.

Key Objectives:

• To maintain an organizational structure for MCAR. Its volunteer leadership and professional staff are there to effectively address the expectations of all Association members.

• To maintain a continuing relationship with all levels of government in order to monitor and influence public policy which affect the ability of the consumer to own, use and transfer real property.

• To collect, analyze and disseminate data/information on significant market, economic, demographic and technological conditions affecting the housing and real estate industry.

• To effectively represent the interests of MCAR to key individuals, organizations and groups in pursuit of MCAR’s mission and objectives.

• To formulate, promote and foster consistent professional standards of business practice, integrity and ethical conduct among the membership.

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Why Use a REALTOR®?

The REALTOR® trade mark is an assurance of integrity.

Maybe you’re buying a home for the first time. Or maybe you’re selling your old home to move up to something new. Whatever the reason, the buying and selling of a home is a big event.

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. It’s an intricate process involving many specialists. Transactions today usually exceed $200,000. If you had a $200,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $200,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.

A REALTOR®’s job is to make the transfer of property as easy as possible. 

FACT: All real estate licensees are not the same.

Only real estate licensees who are members of the National Association of REALTORS® are properly called REALTORS®. They proudly display the REALTOR “R” logo on the business card or other marketing and sales literature. REALTORS® have taken additional steps to become members of the local board of REALTORS® and have agreed to act under and adhere to a strict Code of Ethics. 

FACT: REALTORS® are committed to treat all parties to a transaction honestly.

REALTORS®, since they subscribe to a strict code of ethics, are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR® again. The REALTOR® you work with could be one of your most valuable resources.

Still not convinced of the value of a REALTOR®? Here are a dozen more reasons to use one:

1. Your REALTOR® can help you determine your buying power—that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can help you in understanding different financing options and in identifying qualified lenders.

2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you’ll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.

6. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.

7. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.  

8. As a member of their local real estate association/board, REALTORS have their finger on the pulse of the housing market and are in daily contact with buyers potentially interested in your home.

9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.

10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The National Association of REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

11. Your REALTOR® can help you objectively evaluate every buyer’s proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing—a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

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Who Does My REALTOR Work For?

A REALTOR® must disclose to you in writing—THE CONSUMER INFORMATION STATEMENT ON REAL ESTATE RELATIONSHIPS —who exactly he or she represents in any real estate deal involving you. A REALTOR® may represent you as a seller agent, buyer agent, disclosed dual agent or transaction broker. But, because all REALTORS® are guided by a stringent Code of Ethics and Standards of Business Practice, a REALTOR® will always treat you fairly.

Client or Customer?

The difference between receiving information and services from an agent and being represented by an agent is the difference between being a customer and a client. If the REALTOR® represents you, you are a client. An agent owes his or her client the duties of utmost care, integrity, confidentiality and loyalty. If you are simply provided valuable information and assistance, you are a customer.

All REALTORS® are obliged to treat both clients and customers honestly and fairly. The REALTOR® must:

• Respond honestly and accurately to your questions about the property.

• Disclose information about the property which he or she knows or reasonably ought to know.

• Promptly present all offers to the seller.

• Market the property without regard to race, creed, sex, handicap, religion or national origin.

CONSUMER INFORMATION STATEMENT ON REAL ESTATE RELATIONSHIPS

Real estate licensees in many jurisdictions are required to disclose how they intend to work with buyers and sellers in a real estate transaction.

1. "SELLER'S AGENT"

SELLER'S AGENT OR SUBAGENT, I, AS A LICENSEE, REPRESENT THE SELLER AND ALL MATERIAL INFORMATION SUPPLIED TO ME BY THE BUYER WILL BE TOLD TO THE SELLER.

2. "BUYER'S AGENT" BUYER'S AGENT, I, AS A LICENSEE, REPRESENT THE BUYER AND ALL MATERIAL INFORMATION SUPPLIED TO ME BY THE SELLER WILL BE TOLD TO THE BUYER.

3. "DISCLOSED DUAL AGENT" DISCLOSED DUAL AGENT, I, AS A LICENSEE, REPRESENT BOTH PARTIES, HOWEVER, I MAY NOT WITHOUT EXPRESS PERMISSION, DISCLOSE THAT THE SELLER WILL ACCEPT A PRICE LESS THAN THE LISTING PRICE OR THAT THE BUYER WILL PAY A PRICE GREATER THAN THE OFFERED PRICE.

4. "TRANSACTION BROKER" TRANSACTION BROKER, I, AS A LICENSEE, DO NOT REPRESENT EITHER THE BUYER OR THE SELLER. ALL INFORMATION I ACQUIRE FROM ONE PARTY MAY BE TOLD TO THE OTHER PARTY.

Before you disclose confidential information to a real estate licensee regarding a real estate transaction, you should understand what type of business relationship you have with that licensee. There are four business relationships: (1) seller's agent; (2) buyer's agent; (3) disclosed dual agent; and (4) transaction broker. Each or these relationships imposes certain legal duties and responsibilities on the licensee as well as on the seller or buyer represented. These four relationships are defined in greater detail below. Please read carefully before making your choice. 

SELLER'S AGENT

A seller's agent WORKS ONLY FOR THE SELLER and has legal obligations, called fiduciary duties, to the seller. These include reasonable care, undivided loyalty, confidentiality and full disclosure. Seller's agents often work with buyers, but do not represent the buyers. However, in working with buyers a seller's agent must act honestly. In dealing with both parties, a seller's agent may not make any misrepresentations to either party on matters material to the transaction, such as the buyer's financial ability to pay, and must disclose defects of a material nature affecting the physical condition of the property which a reasonable inspection by the licensee would disclose.

Seller's agents include all persons licensed with the brokerage firm which has been authorized through a listing agreement to work as the seller's agent. In addition, other brokerage firms may accept an offer to work with the listing broker's firm as the seller's agent. In such cases, those firms and all persons licensed with such firms, are called "sub-agents." Sellers who do not desire to have their property marketed through sub-agents should so inform the seller's agent. 

BUYER'S AGENT

A buyer's agent WORKS ONLY FOR THE BUYER. A buyer's agent had fiduciary duties to the buyer which include reasonable care, undivided loyalty, confidentiality and full disclosure. However, in dealing with sellers, a buyer's agent must act honestly. In dealing with both parties, a buyer's agent may not make any misrepresentations on matters material to the transaction, such as the buyer's financial ability to pay, and must disclose defects of a material nature affecting the physical condition of the property which a reasonable inspection by the licensee would disclose.

A buyer wishing to be represented by a buyer's agent is advised to enter into a separate written buyer agency contract with the brokerage firm which is to work as their agent. 

DISCLOSED DUAL AGENT

A disclosed dual agent WORKS FOR BOTH THE BUYER AND SELLER. To work as a dual agent, a firm must first obtain the informed written consent of the buyer and the seller. Therefore, before acting as a disclosed dual agent, brokerage firms must make written disclosure to both parties. Disclosed dual agency is most likely to occur when a licensee with a real estate firm working as a buyer's agent shows the buyer properties owned by sellers for whom that firm is also working as a seller's agent or sub-agent.

A real estate licensee working as a disclosed dual agent must carefully explain to each party that, in addition to working as their agent, their firm will also work as the agent for the other party. They must also explain what effect their working as a disclosed dual agent will have on the fiduciary duties their firm owes to the buyer and to the seller. When working as a disclosed dual agent, a brokerage firm must have the express permission of a party prior to disclosing confidential information to the other party. Such information includes the highest price a buyer can afford to pay and the lowest price a seller will accept and the parties' motivation to buy or sell. Remember, a brokerage firm acting as a disclosed dual agent will not be able to put one party's interests ahead of those of the other party and cannot advise or counsel either party on how to gain an advantage at the expense of the other party on the basis of confidential information obtained from or about the other party.

If you decide to enter into an agency relationship with a firm which is to work as a disclosed dual agent, you are advised to sigh a written agreement with that firm. 

TRANSACTION BROKER

The Licensing Laws of many jurisdictions do not require licensees to work in the capacity of an "agent" when providing brokerage services. A transaction broker works with a buyer or a seller or both in the sales transaction without representing anyone. A TRANSACTION BROKER DOES NOT PROMOTE THE INTERESTS OF ONE PARTY OVER THOSE OF THE OTHER PARTY TO THE TRANSACTION.

Licensees with such a firm would be required to treat all parties honestly and to act in a competent manner, but they would not be required to keep confidential any information. A transaction broker can locate qualified buyers for a seller or suitable properties for a buyer. They can then work with both parties in an effort to arrive at an agreement on the sale or rental of real estate and perform tasks to facilitate the closing of a transaction.

A transaction broker primarily serves as a manager of the transaction, communicating information between the parties to assist them in arriving at a mutually acceptable agreement and in closing the transaction, but cannot advise or counsel either party on how to gain an advantage at the expense of the other party. Owners considering working with transaction brokers are advised to sign a written agreement with that firm which clearly states what services that firm will perform and how it will be paid. In addition, any transaction brokerage agreement with a seller should specifically state whether a notice on the property to be sold will or will not be circulated in any or all Multiple Listing System(s) of which that firm is a member. 

YOU MAY OBTAIN LEGAL ADVICE ABOUT THESE
BUSINESS RELATIONSHIPS FROM YOUR OWN LAWYER.

THIS STATEMENT IS NOT A CONTRACT AND IS
PROVIDED FOR INFORMATIONAL PURPOSES ONLY.

Should you choose to list your property, a copy of this information statement will be provided at the beginning of the listing agreement before you are asked any information about your property. That version of this document will contain a signed acknowledgment area which must be signed and returned with the listing agreement before we will service you.

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The Real Estate Brand: The REALTOR®

As you know, not every copy is made from a Xerox® machine; not every tissue is a Kleenex® and not every soft drink is a Coca Cola®. These are brands most of us are familiar and comfortable with. Real estate has its own brand—the REALTOR®.

Not all real estate licensees are REALTORS®. While a real estate agent is simply licensed in New Jersey to conduct business, a REALTOR® has taken the additional steps to become a member of the National, State, and Local Associations of REALTORS®, and has agreed to act under and adhere to a strict Code of Ethics. This membership obligates them to be fair to all parties involved in a transaction.

Just like the brands mentioned above, a REALTOR® has its own identification standard—the REALTOR® “R” logo, a federally registered mark licensed exclusively to members of the National Association of REALTORS®. This mark represents our high standard of professional conduct in serving your interests, ensuring your transaction will be handled professionally and your real estate rights protected.

What can you expect from a REALTOR®? In one word—value. A REALTOR® will maintain the objectivity that’s required to negotiate and execute the best deal for you. According to an independent survey of the general public released by the National Association of REALTORS®, 74% agree using a real estate broker saves time and 70% agree real estate professionals make buying or selling a home much easier.

In another independent survey of more than 1,000 buyers and sellers, most respondents (82 percent) were very satisfied with their real estate brokers/sales associates, and a majority (77 percent) of the sellers felt the commission they paid their broker was money well spent. The survey also found the majority of buyers and sellers (64 percent) were satisfied with the amount of time the process took, and most sellers (87 percent) will use a real estate professional again next time they sell their home.

Clearly these surveys point to the value of using the services of a real estate professional in the home buying and selling process.

In a transaction that has become increasingly complex with the evolution of new financing twists, sales contract intricacies and the many compliance and disclosure issues involved, the REALTOR® is the glue that holds the parties and details together. Using a REALTOR® is the best way to be sure that you have someone on your side to get you the best deal.

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Using a REALTOR® in the Home Purchase

Homeownership, on any level, be it a condominium, townhouse or single-family home, provides you with a foot in the door to the real estate market. It is a chance to save rental dollars and invest in your future while having shelter for you and your family, have a sense of community pride and spirit, and an opportunity to realize significant tax benefits.

When looking for a new home, first and foremost your REALTOR® will need to get to know you better. You will be asked some basic questions about your lifestyle, the type of home you need or desire, and your income, liabilities or debts. It’s important to be realistic and honest. Don’t withhold income information; it will surely surface later when you apply for a mortgage and can thwart your house hunting efforts. The information you supply will ‘pre-qualify’ you for a mortgage and determine how much house you can afford.

From there, you and your REALTOR® will create an overall checklist of what you want in your new home, breaking it into three distinct parts: items you must have, items you want and items you’d like to have that are not necessary. This list will be invaluable as it will serve as the foundation for viewing only those homes that match your criteria.

Here’s a look at the value you can expect from your REALTOR® in the home buying process:

1) Your REALTOR® will determine your buying power—that is, your cash reserves plus borrowing capacity.

2) Your REALTOR® assists you in the selection process by

providing objective information about each property.

3) REALTORS® provide local community information.

4) Your REALTOR® negotiates a myriad of factors, including but not limited to, price, financing, terms, and date of possession.

5) Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, to name a few.

6) Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.

7) Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.

Your REALTOR® delivers the American Dream of Homeownership.

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Using a REALTOR® in the Home Sale

Selling a home is a difficult endeavor—even in a hot market—yet, there are many homeowners who attempt to sell their own property. Why? Most sellers deny themselves the benefit of using a real estate professional because they want to “save” money. But, is it worth it? Before making a costly mistake, consider some of the benefits—from A-to-Z—you receive from working with a trained REALTOR®:

Advertising - The REALTOR® pays all advertising costs.

Bargain - Research shows 84% of sellers used a REALTOR® to sell their home.

Contract Writing - A REALTOR® can supply standard forms to speed the transaction.

Details -A REALTOR® frees you from handling the many details of selling a home.

Experience & Expertise - In marketing, financing, negotiations and more.

Financial Know-How -A REALTOR® is aware of the many options for financing the sale.

Glossary -A REALTOR® understands and can explain real estate terminology and their meanings.

Homework -A REALTOR® will do homework on how to best market your home.

Information - If you have a real estate question, a REALTOR® will know (or can get) the answer.

Juggle Showings -A REALTOR® will schedule and handle all showings that meet your needs.

Keeps your best interests in mind - It’s a REALTOR®’s job!

Laws - A REALTOR® is up to date on real estate laws that affect you and the transaction.

Multiple Listing Service - The most effective means of bringing buyers and sellers together.

Negotiation - A REALTOR® will assist and guide in all contract negotiations.

Open Houses - A popular marketing technique.

Prospects - A REALTOR® has a network of contacts that can produce potential buyers.

Qualified Buyers - Avoid opening your home to “curiosity seekers.”

REALTOR®- Unlike other licensees, an agent who is a member of the National Association of REALTORS® and subscribes to a strict code of ethics.

Suggested Price -A REALTOR® will do a market analysis to establish a fair price range.

Time - Something a REALTOR® saves you.

Unbiased Opinion - Most owners are too emotional about their home to be objective.

Wisdom - A knowledgeable REALTOR® can offer the wisdom that comes with experience.

X Marks the Spot -A REALTOR® is right there with you through the final signing of papers.

Yard Signs - A REALTOR® provides a professional sign, encouraging serious buyers.

Zero-hour Support - Selling a home can be an emotional experience. A REALTOR® maximizes  exposure and minimizes problems.

With the professional assistance of a REALTOR®, the home-selling process can be much easier. Remember, your peace of mind and a great deal of money are at stake.

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Copyright © 2002 Monmouth County Association of REALTORS®  and RJR Solutions, Inc. 
All rights reserved.

Information herein is deemed reliable but not guaranteed.