I graduated law school in 1997. Over the years, I have been asked all kinds of legal questions by friends, acquaintances, colleagues and clients. I’ve also been asked to represent people in various areas of the law. I have turned down most of these requests or not been able to fully answer questions because it was not within my sphere of competence.
While a law degree entitles one to practice within any area of law one chooses, it is certainly not wise to do so and likely violates ethical responsibilities. In the end, I am simply not competent to practice most areas of the law.
So too with real estate agents. Obtaining a license to practice real estate in Virginia entitles the holder of that license to engage in any real estate service for a client. For example, residential resale, commercial, land and property management to name a few. It is also a statewide license, which means the licensee can engage in real estate practice in any area of Virginia they wish. Neither of these would be a good idea.
First, each category of real estate practice has its own unique quirks, terms and knowledge base. Not having proper familiarity with such things at the very best will cause you to look foolish; at the worst, will subject you to liability to your client or others. What’s more, Article 11 of the Code of Ethics requires Realtors to “conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage.” (emphasis added). Several years ago, an agent I knew who had only handled residential real estate transactions found herself representing a buyer in a transaction involving a gas station. I implored her to find a commercial real estate agent to work with and have her client hire an attorney. Neither of those occurred. The deal did not go well!
Second, real estate is local. One may be an experienced residential real estate agent, but not being familiar with a particular geographic area can be problematic. Again, the Code of Ethics is instructive. Standard of Practice 11-1 requires a Realtor to be familiar with the area where the subject property is located when preparing an opinion of real property value or price. What’s more, it should just be obvious that generally, a realtor who practices in Loudoun County, Virginia, probably doesn’t know much about Charlottesville and is not well positioned to advise a buyer or seller regarding property there.
In sum, stay within your sphere of competence. Protect yourself and the public from what you don’t know. Oh, and if you get charged with drunk driving, don’t call me!