After a decades-long career as a noted researcher and teacher, Professor Y decided to sell his home near the university campus in anticipation of his retirement to the northwoods. Having lived in the home for over thirty years and realizing that the proceeds from its sale would constitute a significant part of his retirement funds, Professor Y made appointments with several potential listing brokers, including REALTOR^® P and REALTOR^® Q. During each appointment, Professor Y asked extensive questions hoping to get a clear idea of his property's market value and each broker's proposed marketing strategies.

REALTOR^® Q was familiar with Professor Y's home, having grown up on the same block and having gone to elementary and high school with Professor Y's children. Consequently, REALTOR^® Q was not surprised when she received a call asking for a meeting to discuss a possible listing of Professor Y's home. The appointment had gone well and REALTOR^® Q was confident she would get the listing. To her surprise, just three days later the property came onto the market listed with REALTOR^® P. REALTOR^® Q was taken aback and spent considerable time pondering what she had done or said - or failed to do or say - that had led Professor Y to choose to list with REALTOR^® P. Several times she was tempted to call Professor Y and ask why she hadn't been chosen, but she never made that call.

Several weeks later Professor Y's son and daughter-in-law hosted a retirement party for Professor Y. Their friend Q was among the invited guests. At the party, Professor Y approached REALTOR^® Q and, after exchanging pleasantries, commented, "You're probably wondering why I didn't list my home with you." "The thought crossed my mind," admitted REALTOR^® Q, "but you made a good choice with REALTOR^® P. I'm certain he'll do a fine job and get a fair price for you." Then, since Professor Y had raised the issue, REALTOR^® Q asked, "Why didn't you give me the listing?" Professor Y explained that while he thought highly of REALTOR^® Q, he had been very impressed with REALTOR^® P's marketing strategies, and his choice was a business decision and not one influenced by friendships. REALTOR^® Q accepted Professor Y's explanation and their conversation turned to other topics. A month later, REALTOR^® Q was surprised to receive notice from the local association of REALTORS^® advising she had been named in an ethics complaint alleging that her conversation with Professor Y, after Professor Y had listed his home with REALTOR^® P, had violated Article 16 of the Code of Ethics.

At the hearing, REALTOR^® Q had acknowledged she had been surprised - and disappointed - when Professor Y listed his home with REALTOR^® P instead of with her. She also acknowledged she discussed Professor Y's choice of listing broker with him at the party. In her defense, she called Professor Y as a witness. Professor Y testified that he had in fact told REALTOR^® P, his listing broker, about his conversation with REALTOR^® Q, adding that he had no idea that REALTOR^® P would file an ethics complaint. He also noted he - and not REALTOR^® Q - had raised the subject of why he had chosen to list with REALTOR^® P. "REALTOR^® Q is a longtime friend of my family and I felt I owed her an explanation about why I listed with REALTOR^® P instead of with her."

REALTOR^® Q concluded her defense noting that while Standard of Practice 16-13 requires REALTORS^® to conduct dealings related to exclusively listing property with the client's agent, there is an exception in cases where dealings are initiated by an exclusively-represented client. She pointed out that her conversation with Professor Y could fairly be characterized as a "dealing" related to Professor Y's exclusively listed home, and that her conversation with Professor Y, since it was initiated by Professor Y, did not violate Article 16 of the Code of Ethics.

What do you think the hearing panel concluded? Show Answer