ask george & chuck
Dec. 1, 2008

Leases, sold vs. pending
Answers to real estate questions as appearing
in the Houston Chronicle

Dear George: My roommates and I entered into a lease agreement on a Texas Association of REALTORS® form. However, our landlord is not a member of the Texas Association of REALTORS®. The first line on the form states: "Use of this form by persons who are not members of the Texas Association of REALTORS® is not authorized." Is our lease invalid?

Answer: No, your lease is valid. However, your landlord's unauthorized use of the lease could bring an enforcement action against her. You can contact the Texas Association of REALTORS® Legal Department at 800/873-9155 and report your landlord's use of this form.

Dear George: Is it ethical for an agent to send out postcards promoting a home that she sold when the sale of that home is still pending? This agent is a broker. Is it necessary for her to identify herself and her brokerage on the cards?

Answer: Promoting the pending home as sold could violate the National Association of REALTORS® Code of Ethics. Article 2 of the Code states that REALTORS® refrain from exaggeration, misrepresentation, or concealment of pertinent facts related to property or transactions. Article 12 states that REALTORS® paint a true picture in their advertising and in other public representations. Regardless, if the property was on the market as pending, the agent should send out postcards that claim the property was a pending sale rather than a sold property. Promoting the property as sold could also discourage other legitimate offers from being received as back-up contracts on the property. As far as the information required on the postcard, the name of the firm is generally adequate provided the name of the firm identifies it as a real estate brokerage.