by Marcie Roggow, ABR

Last month I had the opportunity to moderate a panel of real estate service providers at a local REALTOR" Association education event. The panel was made up of a lender, a title company person, an appraiser, and a REALTOR' member. The issue at hand was "What can I disclose about my client, the transaction, or anything to do with the transaction to a party who is not my client or the agent of the client?"

The problem that exists today is not any different than when I started in this business in 1972. When real estate agents need information about a loan, they call the lender. Lenders freely give all information requested, not just to the client's own agent but also to the cooperating broker. The appraiser working diligently to complete the appraisal calls the listing agent and says "I'm coming up a little short, what comparables did you use?"

Wouldn't you and your buyers love to know when those phone calls are being made? As the buyer's rep, don't you call listing agents (sometimes even in designated agency situations in-house) and ask those four famous questions: Why are they selling? Have there been any offers? is there room for negotiation? How long has it been on the market? (Although that information is available in the MLS stats.) When I ask those questions, most agents freely give me the answers. Title companies and closing companies have sent copies of the HUD statement showing closing figures to all parties for years-even though there are separate pages in order to ensure privacy. Well folks, the truth of the matter is that what I know is none of your business unless the party who owns the information gives me written permission to give the information to you.

When I bought my home three years ago, I asked if the loan was assumable. The bank said it was, and when I asked to see an assumption package, they sent me everything I needed to figure out the sellers' net sheet-mortgage payoff, per diem, escrow account balances, and daily accrual. I was able to negotiate a fabulous price for my home based on that information-all of which was none of my business at that point in the transaction.

At my local REALTOR' Association event, each member of my panel of experts gave their profession's rules and regulations on the release of confidential information to anyone other than the client. Of course, they firmly stated adherence to those rules. The appraiser, for example, said that the appraisal is the property of the bank that orders it. He said the real estate agent who calls to see how the appraisal is coming should be told when it would be delivered to the bank, but not the specifics of the appraisal itself. If the appraiser needs the comparables, he should get them before starting the appraisal, or without reference to the fact the appraisal isn't matching the purchase price. Wouldn't your buyer be shocked to know that the price of the house had been raised because of the actions of the seller's agent?

In this market, where the use of preapproval letters has become prevalent, a word about confidentiality may be in order. Nowadays, sellers' agents want the assurance your buyers are qualified. There are too many full-price and fullprice-plus offers out there. As a buyer's rep, you know the preapproval letter improves your buyers' chance of getting the house. There's just one little thing to remember: Don't put the loan amount in the preapproval letter that you give to the cooperating broker. Your buyers may decide not to use the full amount approved, but to make an offer at a lower figure. To reveal the loan amount approved can sabotage your negotiating strategy. A letter from the lender saying that the buyer has been given loan approval for an amount that would allow them to purchase this home is sufficient.

Finally, when representing buyers who wish to remain anonymous, their "attorney in fact" should sign the purchase agreement. Be certain not to attach a personal check to the purchase agreement to be used as earnest money.

I don't make this stuff up folks. I get it from you in class and via the emails you are so kind to write. So, on the subject of confidentiality, my advice to you is "Zip it up". What you know about your client is nobody's business unless your client has given you permission to disclose it-in writing.

Marcie Roggow, is co-owner of Creative Learning Concepts, LLC, Sioux Falls, SD, ww.realestateeducators.com, a senior ABR instructor who also provides training for state associations, local boards and real estate companies such as C21 and RE/MAX on RSN. She trains trainers for REBAC, has written a book, Buyer Representation for the Real EstateProfessional, and is active within NAR, her local and State Association of REALTOR". She can be reached at 6051338-8022 or at ABRMarcie@aoLcom.