"Honored Agent" - The buyer’s agent or subagent who does not accompany a prospective Buyer/client or Buyer/customer to an open house, but who is acknowledged by the agent holding the open house and given the opportunity to complete the transaction and receive compensation by the listing agent (if offered).

"Host Agent" - The listing agent or an agent appointed by the listing agent who markets a property during an open house.

"Prospective Buyer" - An individual(s) who is interested in purchasing real estate, but has not yet entered into a purchase contract.

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REALTORS® should recognize that the buying public may be unaware of, and unconcerned with professional courtesies, procedures and ethics of the real estate industry. The prospective Buyer’s interest is to find the most suitable property. Therefore, it is in the REALTOR®’s best interest to explain to the customer the practices and procedures REALTORS® use to avoid inter-agent conflicts. Many Buyers are willing to follow "the rules" if they are aware of them and understand that their actions can make it difficult or impossible for you to provide the service they desire. The REALTORS® that successfully sell their abilities to the Buyers, educate them to REALTORS®’ customs and practices and ask for their loyalty will seldom find themselves in conflicts with other REALTORS® because of their customers’ or clients’ actions.

The following guidelines have been developed to assist the REALTOR® in maintaining proper professional courtesies as they apply to open house situations. They will also help in establishing and recognizing procuring cause in relation to the unaccompanied prospect.

1) Prospective Buyers should be cautioned at the earliest opportunity not to inspect homes (listed or open) unless you accompany them, or unless you have called ahead and made arrangements in advance with the host agent holding the open house if they wish to have you represent them in the purchase of that property.

2) If the prospects desire to attend open houses unaccompanied by you and you are unable to call ahead, you should instruct them to ask the host agent upon their arrival if the agent will agree to honor you without your presence during the initial showing. If so, the prospects should record your name and company, as well as their own on the guest register.

The Cincinnati Area Board of REALTORS® strongly recommends the following procedure for agents holding open houses:

1) Each party entering the open house should be asked if they are "on their own" or "are they working with an agent or represented by a buyer’s agent." This should be done in a non-threatening way as a part of your normal introduction and welcoming them to the property.

2) If it is your policy not to honor other agents if they are not present, advise the prospects accordingly. To avoid misunderstanding or possible controversy, encourage them to return later with their agent. Remember, your policy must be discussed with the Seller in advance of the open house and may be enacted only with the Seller’s agreement. It is the listing agent’s or host agent’s duty to market the home in the best interest of the Seller. Honoring a buyer’s agent or subagent who is not present may be the event that leads to an offer for the Seller.

3) Ask the prospects to "please sign our guest register" before touring the premises so that the Sellers may have a record of who has seen their property. This register should include their name, address, phone number, agent’s name and company. Space for "comments" or "how did you become aware of this property?" may assist you in marketing property, evaluating your service and possibly establishing the procuring cause if another agent is named who later abandons the prospect. However, when representing the Seller, your attitude should not change dependent on who the Buyer is working with.

4) If a prospect arrives at the open house unaccompanied and states they are not working with another agent, utilize the opportunity to begin establishing procuring cause. This is also your opportunity to sell the home, your professionalism, your firm and the real estate industry. Remember, improper handling of agency disclosure may affect the relationship with a potential client. Being present at the open house may be the beginning of the series of events outlined in the Guidelines to Entitlement in the Information Directory.

Agents who are honored without their presence should make special efforts to follow-up with the appropriate communications to the host agent. The professional courtesy extended to agents under these guidelines is for the initial showing only. If the prospect is interested, the honored agent should re-show the property at the earliest opportunity. All agents involved should be aware that the mere agreement to honor another agent by the host agent at the open house does not, in and of itself, entitle the other agent to claim a commission. Procuring cause dictates that a series of events must be maintained without abandonment. The failure to contact an interested prospect and follow-up with the appropriate activity in a timely fashion may be construed as abandonment. Depending on the circumstances, such abandonment may occur in any time frame. The extension of extraordinary professional courtesy from one agent to another should not be considered a license for abuse of that courtesy.

Agents should be aware that "threshold theory," which held that the agent present at the first inside showing is the agent entitled to the commission, is not consistent with the Supreme Court of Ohio’s definition of procuring cause as it applies to commission entitlement. Procuring cause is the cause directly originating a series of events which, without a break in their continuity, directly results in the producing of a Buyer ready, willing and able to buy the real estate on the Seller’s terms. The Cincinnati Area Board of REALTORS® Arbitration Committee uses the Supreme Court of Ohio’s definition in determining its awards. An Ohio Association of REALTORS® white paper

on procuring cause is available on the subject and will provide valuable insights for your consideration.

It is recommended that every agent review and consider these guidelines, as well as the Code of Ethics and Guidelines to Entitlement in an attempt to eliminate open house practices that are not in keeping with the spirit of cooperation, fair play and the Golden Rule.

"Whatsoever ye would that others should do to you, do ye even so to them."

Adopted September 21, 1990

Revised December 15, 1993, April 23, 1999