On July 14, 2018 a
Trial Materials
was filed
involving a dispute between
Ellyn Berk,
Pamela Goldstein,
Paul Benjamin,
Tony Berk,
and
Houlihan Lawrence Inc.,
for Commercial Division
in the District Court of Westchester County.
Preview
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 529 RECEIVED NYSCEF: 05/14/2019
EXHIBIT 126
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC.
9/12/2018 NO. 529 Law & Policy: Professionalism RECEIVED
and pocket NYSCEF:
listings 05/14/2019
www.nar.realtor
|
NATIONAL
ASSOCIATIONaf
REALTORS®
REALTOR
REALTOR® AE Magazine
( Winter 2014: Raise the Bar )
Law & Policy: Professionalism and
pocket listings
March 5, 2014
Soon"
"Coming Listings
By: Lesley M. Walker
By now pocket listings are a concept most real estate professionals are
and in some circles they have become something of a dirty
word. Lower
created a surge in pocket listings, especially in markets such as Northern
where as much as 30 percent of all listings are believed to be pocket listings
However, markets across the United States are dealing with this issue mo
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC.
9/12/2018 NO. 529 Law & Policy: Professionalism RECEIVED
and pocket NYSCEF:
listings 05/14/2019
www.nar.realtor
|
markets the property through informal networks or new online platforms.
commonly require agents to place listings on the MLS within two days of
signed agreement. Failure to do so violates MLS rules, garnering the agent
penalty and fines. Of course, sellers can always elect not to have their
pro
included in the MLS. In these instances, agents must have the seller sign
out form evidencing the seller's direction not to have the property placed
Suggesting a pocket listing
Ethics'
The REALTOR® Code of Article 1 requires REALTORS® "to promote
client."
protect the interests of the REALTORS® must always keep this in
recommending a pocket listing to a client. Even beyond the Code of Ethics,
generally dictates that real estate agents owe a fiduciary duty to their client
clients'
real estate professionals must place their interests above their ow
the best interests of their clients at all times.
Legal risk
concerning pocket listings arises when agents or brokers keep
the MLS for reasons that are not in the best interest of the client. For exam
MLS listings, pocket listings are more likely to result in the agent representing
seller and the buyer, and the outcome would be a higher commission for
This in itself is not illegal or unethical, but if the prospect of a double comm
the reason an agent suggests a pocket listing to the client, then this could
Code of Ethics, MLS rules, and laws in most states. In another example,
brokerages in a high-end market have numerous pocket listings, which cr
aura of exclusivity for their business and attracts high-end clients. This a
illegal or unethical itself. Yet if the listings are kept off the MLS in order
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC.
9/12/2018 NO. 529 Law & Policy: Professionalism RECEIVED
and pocket NYSCEF:
listings 05/14/2019
www.nar.realtor
|
It cannot be overlooked that Article 3's duty to "cooperate with other brokers
interest"
when cooperation is not in the client's best is rooted in the premise
broad exposure and cooperative marketing often produces the best results
When an agent recommends a pocket listing to a client, it is crucial that
thoroughly discuss with the seller the pros and cons of listing a property
MLS. The agent should go one step further and be sure that the seller und
the benefits being waived by not including the property on the MLS. In gen
MLS offers sellers the greatest exposure of their property, allowing it to b
marketed to every real estate agent belonging to that MLS. In addition, by
the MLS, the property may be downloaded to and displayed on third-party
sites used by the general public. Withholding a property from listing on th
significantly diminishes these marketing opportunities, which may result
fewer potential buyers and a longer time from listing to selling the property,
sellers'
perhaps at the core of most minds, it may not yield the highest pri
property.
Yet, there are situations where pocket listings may be appropriate. One e
seller with privacy concerns. High-profile individuals or celebrities
may no
general public to know they are selling their property. Another situation is
seller
may not want a lot of people coming through the property. In these
pocket listing may make sense to protect and maintain the client's privacy.
Market impact of pocket listings
There is an industry-wide impact of pocket listings. Many times, properties
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC.
9/12/2018 NO. 529 Law & Policy: Professionalism RECEIVED
and pocket NYSCEF:
listings 05/14/2019
www.nar.realtor
|
Still, a pocket listing may make sense for a seller. The National Association
REALTORS® has no official policy on pocket listings. The decision to recom
REALTORS®'
pocket listing to a seller is subject to a adherence to the Cod
requiring the utmost ethical and professional standards. Pocket listings
used only if the agent has determined that doing so would not compromise
and ethical duties they owe to their client.
--
Lesley M. Walker is associate counsel at the National Association of R
Contact her at 312-329-8834 or Iwalker@realtors.org.
Pocket Listings: A Threat to the Culture of Cooperation? An informal workin
listings'
convened by NAR in September 2013 to explore pocket effects o
cooperation in general concluded that associations could take the following
enhance the REALTOR® culture of cooperation: 1) Increase member educat
the potential risks inherent in pocket listings, 2) develop sample disclosure
consent forms explaining the possible consequences of withholding prope
MLSs, and 3)
continued emphasis on the value of cooperation, both informa
through the mechanism of MLSs.
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC.
9/12/2018 NO. 529 Law & Policy: Professionalism RECEIVED
and pocket NYSCEF:
listings 05/14/2019
www.nar.realtor
|
.. -
AEs Promote Professionalism
-p· -
Campaigns to Boost
License Requirements
Psalessionalism
andPocket Listings
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
9/12/2018 Law & Policy:Professionalism
and pocket | www.nar.realtor
listings
NYSCEF DOC. NO. 529 RECEIVED NYSCEF: 05/14/2019
.FeGltOr™
NAR's exclusive top-level domain.
© 2018 National Association of REALTORS®. All Rights Reserved.
https://www.nar.realtor/realtor-ae-magazine/Iaw-policy-piefessici
alisi -i-and-pocket-listings 6/6
Document Filed Date
May 14, 2019
Case Filing Date
July 14, 2018
Category
Commercial Division
For full print and download access, please subscribe at https://www.trellis.law/.
Preview
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 529 RECEIVED NYSCEF: 05/14/2019 EXHIBIT 126 FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 9/12/2018 NO. 529 Law & Policy: Professionalism RECEIVED and pocket NYSCEF: listings 05/14/2019 www.nar.realtor | NATIONAL ASSOCIATIONaf REALTORS® REALTOR REALTOR® AE Magazine ( Winter 2014: Raise the Bar ) Law & Policy: Professionalism and pocket listings March 5, 2014 Soon" "Coming Listings By: Lesley M. Walker By now pocket listings are a concept most real estate professionals are and in some circles they have become something of a dirty word. Lower created a surge in pocket listings, especially in markets such as Northern where as much as 30 percent of all listings are believed to be pocket listings However, markets across the United States are dealing with this issue mo FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 9/12/2018 NO. 529 Law & Policy: Professionalism RECEIVED and pocket NYSCEF: listings 05/14/2019 www.nar.realtor | markets the property through informal networks or new online platforms. commonly require agents to place listings on the MLS within two days of signed agreement. Failure to do so violates MLS rules, garnering the agent penalty and fines. Of course, sellers can always elect not to have their pro included in the MLS. In these instances, agents must have the seller sign out form evidencing the seller's direction not to have the property placed Suggesting a pocket listing Ethics' The REALTOR® Code of Article 1 requires REALTORS® "to promote client." protect the interests of the REALTORS® must always keep this in recommending a pocket listing to a client. Even beyond the Code of Ethics, generally dictates that real estate agents owe a fiduciary duty to their client clients' real estate professionals must place their interests above their ow the best interests of their clients at all times. Legal risk concerning pocket listings arises when agents or brokers keep the MLS for reasons that are not in the best interest of the client. For exam MLS listings, pocket listings are more likely to result in the agent representing seller and the buyer, and the outcome would be a higher commission for This in itself is not illegal or unethical, but if the prospect of a double comm the reason an agent suggests a pocket listing to the client, then this could Code of Ethics, MLS rules, and laws in most states. In another example, brokerages in a high-end market have numerous pocket listings, which cr aura of exclusivity for their business and attracts high-end clients. This a illegal or unethical itself. Yet if the listings are kept off the MLS in order FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 9/12/2018 NO. 529 Law & Policy: Professionalism RECEIVED and pocket NYSCEF: listings 05/14/2019 www.nar.realtor | It cannot be overlooked that Article 3's duty to "cooperate with other brokers interest" when cooperation is not in the client's best is rooted in the premise broad exposure and cooperative marketing often produces the best results When an agent recommends a pocket listing to a client, it is crucial that thoroughly discuss with the seller the pros and cons of listing a property MLS. The agent should go one step further and be sure that the seller und the benefits being waived by not including the property on the MLS. In gen MLS offers sellers the greatest exposure of their property, allowing it to b marketed to every real estate agent belonging to that MLS. In addition, by the MLS, the property may be downloaded to and displayed on third-party sites used by the general public. Withholding a property from listing on th significantly diminishes these marketing opportunities, which may result fewer potential buyers and a longer time from listing to selling the property, sellers' perhaps at the core of most minds, it may not yield the highest pri property. Yet, there are situations where pocket listings may be appropriate. One e seller with privacy concerns. High-profile individuals or celebrities may no general public to know they are selling their property. Another situation is seller may not want a lot of people coming through the property. In these pocket listing may make sense to protect and maintain the client's privacy. Market impact of pocket listings There is an industry-wide impact of pocket listings. Many times, properties FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 9/12/2018 NO. 529 Law & Policy: Professionalism RECEIVED and pocket NYSCEF: listings 05/14/2019 www.nar.realtor | Still, a pocket listing may make sense for a seller. The National Association REALTORS® has no official policy on pocket listings. The decision to recom REALTORS®' pocket listing to a seller is subject to a adherence to the Cod requiring the utmost ethical and professional standards. Pocket listings used only if the agent has determined that doing so would not compromise and ethical duties they owe to their client. -- Lesley M. Walker is associate counsel at the National Association of R Contact her at 312-329-8834 or Iwalker@realtors.org. Pocket Listings: A Threat to the Culture of Cooperation? An informal workin listings' convened by NAR in September 2013 to explore pocket effects o cooperation in general concluded that associations could take the following enhance the REALTOR® culture of cooperation: 1) Increase member educat the potential risks inherent in pocket listings, 2) develop sample disclosure consent forms explaining the possible consequences of withholding prope MLSs, and 3) continued emphasis on the value of cooperation, both informa through the mechanism of MLSs. FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 9/12/2018 NO. 529 Law & Policy: Professionalism RECEIVED and pocket NYSCEF: listings 05/14/2019 www.nar.realtor | .. - AEs Promote Professionalism -p· - Campaigns to Boost License Requirements Psalessionalism andPocket Listings FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 9/12/2018 Law & Policy:Professionalism and pocket | www.nar.realtor listings NYSCEF DOC. NO. 529 RECEIVED NYSCEF: 05/14/2019 .FeGltOr™ NAR's exclusive top-level domain. © 2018 National Association of REALTORS®. All Rights Reserved. https://www.nar.realtor/realtor-ae-magazine/Iaw-policy-piefessici alisi -i-and-pocket-listings 6/6