Xaamirr1
Ethics is inevitably linked to professional conduct and to…
Ethics is inevitably linked to professional conduct and to reputation in the real estate industry. Once a realtor’s ethics are found to be wanting, clients avoid them, and they can be fined or have their licenses revoked in some cases. In this assignment, you apply some of the ethical practices and legal concepts necessary for professional conduct and credentials to a scenario.
Scenario: Parker is a new real estate agent and is scouting homes for a prospective out-of-town buyer. The buyer and their partner are about to retire and want a newer home with 4 bedrooms, 3 baths in a residential neighborhood with amenities and good schools nearby in the $350,000 range. The buyer also wants to make sure there is no mold in the home since their partner is allergic.
It is a seller’s market, and there are very few homes for sale. Parker scours the listings and finds a few somewhat older homes, but that otherwise fit the price range. Although older homes may have mold issues since the area is known for humidity, there is one on Holly Street that they think the clients will love. The seller of the Holly Street home is offering a bonus to Parker if the house sells in 2 months’ time, and if the buyers wave inspections. The seller is being transferred to another state for a new job and needs the proceeds right away to purchase there.
Parker presents the home via a Zoom® call, and the clients think it is perfect even if it is 10 years old. Parker says, “I think this is the perfect home for you, and I did not smell any mold in the house at all! This house is a great value for the price and location. I don’t think you even need inspections!” Parker then recommends his brother, a mortgage broker, because he will give you “great rates on great mortgages.” The brother, in turn, recommends a 20-year mortgage at a rate of 5%. Trusting their agent, the buyers close on the Holly Street house in 90 days.
A month later, Parker is feeling very pleased with the sale when he receives a call from the buyers, “My partner has been suffering from allergies ever since we moved into this house and an inspector came out and told us there is a significant mold issue in the house! Not only that, but the mortgage your brother convinced us to get has a huge payment due every month. Now I don’t know when we will ever be able to retire!”
Based on the Code of Ethics, and your assigned reading address the checklist items:
Checklist:
Analyze the ethical considerations concerning the scenario based on the code of ethics above.
Analyze the legal considerations by doing some research on the Internet.
Explain the legal and ethical implications for the agent.
Describe the process Parker should have used to find the right property for the clients.
Explain what the sales agent should have recommended to the client regarding the securing of a mortgage for their prospective home.
Explain what actions the clients can take.
