Real Estate Ethics: Common Practices

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Questions and Answers

What is an example of poaching in real estate, as seen in Agent A's actions towards Agent B's exclusive listing?

Emailing the seller to offer to sell their property at a lower commission.

What is the unethical behavior exhibited by Agent B in the scenario where Agent A accompanied a client on a tripping?

Taking credit for the client's reservation without informing Agent A.

What is an example of online misconduct in real estate, as seen in Agent A's behavior?

Making derogatory comments about another agent on the internet.

What is an example of improper advertising in real estate, as seen in the scenario of flyering/posting online listings?

Posting without PRC/DSHUD accreditation and not following proper format. Signup and view all the answers

What is an example of an accredited salesperson's failure to comply with ethical standards?

Failing to indicate required accreditations on posted marketing materials. Signup and view all the answers

What is an example of fraudulent behavior in real estate, as seen in the scenario of buying certificates/licenses from Recto?

Buying falsified documents. Signup and view all the answers

What is an example of unauthorized printing in real estate, as seen in the scenario of printing Official Receipts?

Printing without the Authority to print. Signup and view all the answers

What is an example of a practitioner's failure to comply with financial regulations, as seen in the scenario of issuing Official Receipts?

Issuing Official Receipts but not filing them. Signup and view all the answers

What is the scenario described in the walk-in client example?

A client signs all documentation for a property, but cancels the transaction on the way to pick up the reservation agreement and fees, citing spouse's disagreement. Signup and view all the answers

What is the issue with the salesperson in scenario 12?

Having different brokers per developer or per general brokerage transaction. Signup and view all the answers

What is the unethical practice described in scenario 13?

Giving rebates to buyers, offering a percentage of the commission as an incentive. Signup and view all the answers

What is the issue with brokers/managers in scenario 14?

Not giving the commission due to the salesperson, or failing to provide it after termination or resignation. Signup and view all the answers

What is the unethical practice described in scenario 15?

Brokers not giving or sharing the incentives provided by developers. Signup and view all the answers

What is the issue with soliciting listings in scenario 16?

Bypassing the original source of the documents or going straight to the owner to transact, or using the introduction to make a transaction under a different company name or entity. Signup and view all the answers

What is the unethical practice described in scenario 17?

Adding an 'overprice' to the property without sharing the gained amount with the original practitioner. Signup and view all the answers

What is the issue with employing a salesperson in scenario 18?

The salesperson is not accredited. Signup and view all the answers

Study Notes

Unethical Practices in Real Estate

Agent A solicited a client by emailing the seller directly, bypassing Agent B, who had an exclusive listing, to offer a lower commission.
Agent B took credit for a client's reservation without informing Agent A, who had accompanied the client to the property.

Misrepresentation and Lack of Transparency

Agents posted online listings without proper accreditation or formatting.
Accredited salespersons failed to include their accreditations on marketing materials.

Fraudulent Activities

Some salespersons bought falsified certificates/licenses from Recto.
Practitioners printed official receipts without authorization.

Unethical Business Practices

Licensed brokers undervalued properties to avoid higher taxes and realty tax.
Practitioners issued official receipts but did not file them.
Under-the-table transactions (SOP or lagay system) were used for fast-tracked transactions.

Breach of Trust and Confidentiality

Agents cancelled transactions and stole clients from other agents.
Salespersons had multiple brokers per developer or general brokerage transaction.

Unethical Compensation Practices

Practitioners offered rebates to buyers in exchange for reservations.
Brokers/managers withheld commissions from salespersons, including after termination or resignation.
Brokers did not share incentives given by developers.

Misuse of Confidential Information

Agents solicited listings and then bypassed the source of the documents to transact directly with the owner.
Brokers used documentation from other practitioners, added an "overprice," and kept the additional amount for themselves.

Unaccredited Salespersons

Employing unaccredited salespersons was a common practice in the industry.

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Description

Explore common practices in real estate that may not align with the industry's Code of Ethics, including real-life scenarios and examples.