Professional ethics: Giving clients an honest deal

An honest and forthcoming start with a new client helps real estate agents and brokers avoid compromising their ethics and is ultimately better for the individual's business and the industry as a whole, said Beth Rossum, the newest appointee to the Nevada Real Estate Commission.

In October, Rossum, co-owner of Rossum Realty, was named to the state's five-member panel that is charged with regulating real estate licensees and conducting disciplinary hearings.

"I have a theory that you begin a relationship by telling your client that you are going to tell the truth, no matter what, and by doing that you foster an honest relationship with that client," Rossum said.

"I'm not going to tell you your house is worth $200,000 when it isn't, and I'm not going to give you a false impression of what's actually happening in a transaction. A client should be kept informed all along so there aren't any unpleasant surprises. The worst situation you could be in is a client finding out that you haven't been completely honest. This is a referral business and clients aren't going to want to recommend someone who hasn't been completely truthful.

"(Honesty) also requires an agent to say what he doesn't know, to say `I don't know but I'll find out' instead of making something up."

The commission is comprised of three appointees from the north of the state and two from the south, each of whom serves a maximum of two three-year terms. It works in an advisory capacity with the Real Estate Division, a state agency charged with educating real estate licensees and investigating complaints against license holders.

Rossum said her first experience with ethical and professional governance came through her participation in the Greater Las Vegas Association of Realtors, which she has served in various capacities over the years, including on its board of directors and its standards committee.

"Ethics start with the (association). We have a code of ethics that we try to stick to fairly closely, plus we have a fiduciary duty to the transaction," Rossum said.

She hadn't considered serving on the commission until a colleague from another firm suggested last summer that Rossum apply for an upcoming vacancy.

The new appointee believes the industry has been well-regulated and that the industry serves its clients well.

"I think as a community, the real estate industry tries very hard to treat everyone fairly. There's only a few people who are not following the standards we set forth," she said.

"I think it's very, very important that real estate brokers have a positive image within the community. Contrary to some popular perception, we really do try to treat everyone fairly and ethically. We believe it is important for people to use brokers for their real estate transactions. There's so many ways for a person to get burned doing transactions without professional assistance, and we need people to trust the advice they're getting from their brokers."

She believes the greatest challenge for the commission is ensuring that standards and education keep pace with changes within the industry, in particular, with technology.

"It's very important in the real estate community for us to advance in our technology and, as a commissioner, I want to keep abreast of technology," she said.

The board, she said, has changed its continuing education requirements for licensees to reflect technologies that have changed the business, such as e-mail for contracts and virtual tours that allow a potential buyer to see a property before visiting.

"I'd like to encourage agents to take classes that will really show them how to do their job better, something that is really useful," she said. "The better we teach agents, the better they can serve the public."

Maintaining integrity within the professional ranks also falls upon brokers such as herself, Rossum said, through hiring and training practices.

"The brokers are responsible for hiring people they believe to be ethical, for training those people, and then keeping them up to date on an ongoing basis so they understand the laws and rules changes," she said.

"The brokers have to care. It can't just be business. They actually have to care about the people working for them."

The result, she said, is an industry where agents represent clients' best interests.

"The majority of our agents (in Las Vegas) are very honest and very ethical because we work so much with referrals in our city. I'm very proud of my profession. I think we do an excellent job."

Rossum, a 22-year resident of Southern Nevada, enrolled in real estate classes on a suggestion from her father, shortly after coming to town.

"After the second day in class I was hooked. I knew it was what I wanted to do."

Seven years later, she and her husband, Woody, opened their own firm. With the completion of their own office building in the mid-1990s, the Rossums invested themselves in the long-term future of Southern Nevada real estate.

"We literally love what we do. We have no children. We have three dogs. We love to work, travel and play golf. For me, in that order," she said.

Rossum Realty has more than 100 agents operating from its offices on South Jones Boulevard.

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