Each week our the Tennessee Realtor Association sends out a newsletter. I found this Q&A regarding public schools to be most interesting. As agents we often have to scoot around questions in regards to demographics, schools, and crime. Here’s why:
HOT LINE: Negative Comments on Area Schools?
QUESTION: Are Realtors permitted to influence their buyer as to what schools they consider to be the best and steer them away from certain neighborhoods because they feel one of the schools will hurt them on resale value? I work in New Construction and have this happen CONSTANTLY where agents tell their clients they would never want to buy a home that is zoned to a particular school (even when the client doesn’t have children!)
ANSWER: The issue of schools in a particular area can be a touchy issue, particularly when one takes into account Fair Housing laws and Article 10 of the Code of Ethics. While the Fair Housing laws and Article 10 do not specifically address the quality of a particular school district, it could affect this subject indirectly. An agent could be accused of “steering” particularly if there is a correlation (or a perceived correlation) between the quality of the schools in an area and the racial or ethnic composition of a particular neighborhood. Do NOT make phrases such as “the schools are not good”, “they have low test scores” or “the schools are declining”. These types of comments could be perceived as being code words for racial or other differences within a particular community. This could lead to allegations of violations of the Fair Housing laws.
In addition, a Realtor could make a statement about the area schools for which a property is zoned, only to have the buyer discover at a later date that the information was incorrect or the school zoning was in the process of being changed …leading to a charge of possible misrepresentation!
This makes if difficult for Realtors to know what they can and cannot say about the school systems. Therefore, NAR recommends that an agent not give his/her own opinion about the schools in an area. This does not mean that the subject of schools is off limits. This is a critical question for many buyers. Instead of commenting that a school system is “good” or “bad”, give the buyer objective information so that they can do their own research about a particular school or school system and form their own opinion. Fred Underwood of NAR gives the following advice:
“Keep a list of school or community-based websites that offer information about schools so you’re prepared to provide those web addresses to your customers,” says Underwood. “Better still, build relationships with local schools, so you know where to direct people’s inquiries. Be equipped to provide contact information at schools or make appointments with the schools – so your customers can go visit the school and find out for themselves.”
These methods can keep a Realtor from unintentionally violating the Fair Housing laws or a violation of Article 10 of the Code of Ethics.
For some additional good information put out by NAR on Realtors discussing the issue of schools in a particular area, please see NAR’s Public Schools: A Toolkit for Realtors. The Appendix of this packet specifically addresses how to handle difficult questions posed by buyers on school systems.
[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]
