Ethics - Lesson 2 PDF

LESSON 2 COMMON PRACTICE IN RELATION TO ETHICAL VALUES IN REAL ESTATE Lesson Description: This lecture would give the student an insight of what is happening “on the ground”. This discussion the students the various common practice...

LESSON 2 COMMON PRACTICE IN RELATION TO ETHICAL VALUES IN REAL ESTATE Lesson Description: This lecture would give the student an insight of what is happening “on the ground”. This discussion the students the various common practice which would not be ideal in reference to the Code of Ethics of the industry Scenarios in actual practice 1. Agent A saw an exclusive listing advertised by Agent B looking for a buyer. He took the effort to find out and emailed the seller to offer to sell his property at a lower commission. 2. Agent A accompanied a client in a tripping in a subdivision, a couple of days later, the same client came back to reserve on the spot. Agent B who was on office duty did not inform Agent A and instead took credit of the reservation of the client. 3. Agent A made derogatory comments about another Agent on the internet. Other Agents shared the posts 4. Flyering / posting online listings without any PRC/DSHUD accreditation. Not proper format when posted. 5. Accredited Salesperson had secured the required accreditations but failed to include / indicate on the posted marketing materials (tarpaulin, flyers, online posting, etc.) 6. Salesperson buying certificates / licenses from Recto (falsificated documents) 7. Printing of Official Receipts without the Authority to print 8. Practitioners issuing Official receipts but not filing it. 9. A license real estate broker with a listing of a property which is placed the property valuation in the municipality of lower than asking price of owner and the buyer agreed buy the property provided that the amount to be stated in the Deed of Absolute Sales be at lower amount to the asking price just to avoid payment of higher taxes and realty tax. 10. Under the table transactions (SOP or lagay system) for fast tracked transactions Ethical Practice in Real Estate ---- Prof Ann V. Villareal Akademeo Learnings. Rights Reserved. Please do not reproduce without permission  11. Walk in client in a project manned by an agent. The client was given all the assistance and had signed all documentation. All that was needed was the signed reservation agreement and reservation fees which was agreed to be picked up by the agent from the place of work of the buyer. On the way there, the Agent got a call from the client saying that he is cancelling the transaction because spouse did not agree The agent went back to the office to cancel the reserved slot, while he was there, she stumbled upon a reservation being booked by a different agent – same account, same location. 12. Salespersons having different brokers per developer or per general brokerage transaction 13. Practitioner giving rebates to buyers – “if you reserve under me – I’ll give you 3% from my commission” 14. Brokers/Managers not giving the commission due to the salesperson. Not giving the commission after termination or resignation 15. Brokers not giving/sharing the incentives given by the developers 16. Soliciting listings – after being given the documents – the buyer’s broker then bypasses the source of the documents , then goes straight to the owner to transact Or after being introduced to the owners, they let time pass and will make the transaction under a different company name or entity 17. Broker A with offering properties (with documentation by another practitioner) Broker A adds an “overprice”. The overprice amount gained is not shared to the practitioner whom the papers originated from 18. Employing an unaccredited salesperson 19. Threatening words with co negotiators when seeking a higher rate of commission 20. Having prospective buyers be registered and going directly to them to negotiate Asynch Assignment: For Submission 1. List down an instance(s) that you have encountered personally or secondhand knowledge where you believe that this is an industry “common practice” that does not reflect well for our professional integrity. Ethical Practice in Real Estate ---- Prof Ann V. Villareal Akademeo Learnings. Rights Reserved. Please do not reproduce without permission