Recently I attended the Annual Convention of the Ohio Association of Independent Title Agents. The featured speaker was Senator Sherrod Brown of Ohio. He discussed the new federal Consumer Protection Agency. He also received a lot of comments from the attendees about the real estate market. Whether he fully grasps the situation is not clear, but we can hope. However, there is another alternative to a big government solution.
The most efficient Consumer Protection for real estate home buyers and sellers is to have advocates who are educated, affordable, and readily available. I am referring to real estate attorneys who are not compensated only if the deal closes, but rather are paid on an hourly or flat fee basis to help inform the clients and to protect their legal rights. If we want to get serious about the real estate industry and market, the solution is not another government agency which will eventually suffer from “waste, fraud, and abuse” like every other governement program. The solution is for state governments to recognize that there is a way to protect consumers by mandating the use of real estate attorneys in home sale/purchase transactions. The additional costs are borne directly by those who receive the benefits.
While we can’t turn back the calendar, one can only imagine what the real estate market would be like now if 10 years ago the State of Ohio recognized how making good or bad decisions with real estate by some would affect us all. Now is the time to send the message to the State that commissioned sales people with a minimum of high school education (real estate agents) are not the proper people to entrust with the protection of consumers.
