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Protecting Client Property: Real Estate Agent’s Ethics Violation Turns Criminal

Errors and Omissions

During the Christmas season, neighbors in a Connecticut town spotted two men carrying large sacks in and out of a home. According to police, one was a local realtor and the other, his accomplice. The men were in the process of stealing from an unoccupied house.

Police arrested the real estate agent on charges of third-degree burglary, conspiracy to commit third-degree burglary, and possession of burglary tools. The home belonged to a recently deceased man, and the agent had access to the home as a realtor.

Police are investigating whether the real estate professional abused access to other homes, which had recently experienced burglaries. Ben Lane “Connecticut real estate agent arrested for allegedly abusing access to rob homes-Authorities investigating a string of burglaries” clarionledger.com (Dec. 29, 2016).

Commentary

The realtor in the above-cited article likely violated at least two professional standards of practice, which led to his criminal liability as well. The 2017 Code of Ethics of the National Association of Realtors includes the following:

Standard of Practice 1-10

REALTORS® shall, consistent with the terms and conditions of their real estate licensure and their property management agreement, competently manage the property of clients with due regard for the rights, safety and health of tenants and others lawfully on the premises.

Standard of Practice 1-11

REALTORS® who are employed to maintain or manage a client’s property shall exercise due diligence and make reasonable efforts to protect it against reasonably foreseeable contingencies and losses.

The particular types of ethics violations in Connecticut are not as common as violations relating to representation and honesty. And, the agent-turned-burglar incident is an extreme and obvious case of an agent failing to properly manage or protect a client’s property.

However, these days, protecting a client’s property is not just about preventing physical access. Real estate professionals must also protect a client’s privacy. During an open house, for example, hide not only the obvious things, like jewelry and small electronics, but also hide any medications in the bathroom, checkbooks, garage door remotes, or any kind of document with your client’s personal information on it. Shut off the homeowners’ Wi-Fi while crowds are present to minimize network hacking attempts.

Consider using security cameras and alarms. It is now possible to easily equip the home with not only security alarms, but also with portable or temporary security cameras can be quickly set up, viewed from a smartphone, and removed when the home is no longer being shown.

* Hanover Insurance Group