Under the Model Rules and Regulations of MLS, the listing broker’s offer of compensation could be paraphrased as, “I, listing broker, promise to pay you, cooperating broker, x percent of cooperative compensation if you become the procuring cause of the sale.” The offer isn’t “I promise to pay you if I collect enough from the seller.”
The Standard says a REALTOR® should have no dealings with another REALTOR®‘s client--and this applies when the client is a relocation company--unless the other REALTORS® gives permission or the dealings are initiated by the client.
The NAR Code of Ethics requires that “agreements shall be in writing, and shall be in clear and understandable language expressing the specific terms, conditions, obligations, and commitments of the parties.” In addition, Standard of Practice 9-1 requires that the agreements be kept current through written extensions or amendments.
The Code of Ethics deal with associates who leave a company and assume they can take listings and buyers under exclusive agreements with them. The Code prohibits REALTORS® from inducing clients of their current company to cancel exclusive contractual agreements between clients and the company.
When we act in an agency capacity, sellers (and buyers, too) rely on us to protect and promote their interests. That’s the basis of Article 1 of our Code of Ethics. Moreover, Standard of Practice 1-3 of the Code prohibits us from “deliberately misleading the owner as to market value” when trying to secure a listing.