Dear George: "My husband and I appreciate your column. We are both concerned, however, that your readers might get 'the wrong idea' about working with REALTORS®. It seems that you publish only complaints about REALTORS®. We recently closed the sale of our home in one state, then closed the purchase of another home in a different state. A REALTOR® listed our previous home. He also referred us to the REALTOR® who represented us as buyers in the purchase of our present home. Both did outstanding jobs! Both responded to our questions in a timely manner. They assisted us in too many ways to list here. If a problem arose, they handled it or got it handled. We hope you'll publish 'the other side' of the story." - Satisfied

Dear Satisfied: My experience over the years is that the vast majority of REALTORS® with whom I've come into contact at the local, state and national levels are knowledgeable, professional real estate practitioners. More than half the communications I receive, however, are from consumers who have not used the services of a real estate agent. Of those "complaints" regarding real estate agents, many - but not all, claim to involve REALTORS®. I believe the consumer is better served by using the services of a professional real estate agent.

Dear George: "I was told by a REALTOR® that all REALTORS® are licensed to sell real estate but that not all real estate licensees are REALTORS®. I have noticed that sometimes you use the term 'Realtor.' Sometimes you state 'real estate professional' or 'real estate licensee.' What's the difference?" - Confused

Dear Confused: The word REALTOR® is a collective membership mark owned by the National Association of REALTORS® ("NAR"). Only a member in good standing of the NAR may use this term. The words "REALTOR, ®" "Realtor," or other NAR owned service marks do not mean "anyone who provides real estate related services to the public." It is an incorrect use of those words to use them in that context.

There are other real estate associations. Some examples are the Chinese Real Estate Association of America, the National Association of Real Estate Brokers, and the National Association of Hispanic Real Estate Professionals, to name just a few.

A real estate licensee, on the other hand, is someone who is state-licensed to engage in the practice of real estate whether or not he or she is a member of any real estate trade association such as the few listed above. Unless one intends to refer to a real estate licensee's membership in a specific trade association, the most accurate way to describe such a person is either real estate licensee or real estate agent.

Dear George: "We just closed a home sold by a builder. We used a real estate agent. He represented us in two contracts with the same builder while he was affiliated with a certain real estate firm. The agent changed firms. We signed a new buyer representation agreement with our agent after the first one expired. We closed on a home. It was a different home from any our agent had shown us before. However, the Title Company told our agent it would not release his commission check until he obtained a signed waiver from his previous firm. As it turned out, he obtained the signed agreement and was paid. However, can a Title Company do that? It seems pretty high-handed to us." - New Owners

Dear New Owners: The Title Company, also acting as Escrow Agent, was perhaps making certain that your agent's previous broker was "OK" with the transaction. If, for some reason, your agent had not been able to obtain the signature, the Title Company might have been involved in a lawsuit if it had it paid your agent.

Dear George: "I am a real estate broker. I just have this to say about your column: 'Keep telling your readers to use professional help!' The 'Seller', who wrote to you about receiving the condo in 1995 as a gift from her mother, is an example. For income tax purposes (as 'Seller' stated) he or she probably needs to establish a basis for capital gains.

There is no 'stepped-up basis' for gifts, like there is for inheritances. 'Seller's' basis is the mother's basis, plus any gift tax paid by the mother, not the fair market value at the time of the gift as 'Seller' implied. The 'Seller' really needs to be referred to a tax expert on this one." - Keep It Up

Dear Keep It Up: Thanks for your input. I've passed along your recommendation to 'Seller' as being from an anonymous Real Estate Broker.

Published: May 3, 2002

Use of this article without permission is a violation of federal copyright laws.

George C. Stephens, CRB is the Broker of deRaat Stephens, Inc. dba ERA Stephens Properties and the Director of Compliance for eRealty, Inc. Stephens served as 1998 Chairman of the 13,000+ member Houston Association of REALTORS® and is the Vice Chairman of HAR’s wholly owned subsidiary, e-Har, Inc. He is the 2001 Secretary/Treasurer of the 50,000+ member Texas Association of REALTORS® and TAR’s 2002 Chairman-Elect. Stephens holds a Texas Real Estate Broker license as well as a Texas Mortgage Broker License.