The Code Of Ethics And Standards Of Practice Of The National Association Of Realtors

805 Words Dec 7th, 2015 4 Pages
Mr. Salesperson committed two ethics violations. According to Article 1 of the Code of Ethics and Standards of Practice of the National Association of Realtors, realtors owe a duty to their clients to honestly protect and promote the clients’ interests (Realtor.com, 2015). Upon receiving the termination of contract notice, research proved that Mr. Salesperson accepted a higher offer and sold the contracted property to another purchaser. This is in direct violation of Article 1 as interpreted by Standard of Practice 1-8: while acting as the agent for the purchaser, a realtor is obligated to submit offers and counter-offers until the acceptance of an offer (Realtor.com, 2015).
Additionally, Mr. Salesperson verbally agreed, on two different occasions, to extend the deadline and confirm so in writing, allowing two additional days to deposit the earnest money. His agreement and subsequent non-action disregards Article 9 as interpreted by Standard of Practice 9-1: reasonable care shall be exercised to ensure “documents pertaining to the purchase, sale, or lease of real estate are kept current through the use of written extensions or amendments” (Realtor.com, 2015).
Under California law, a real estate broker owes the highest level of exclusive loyalty and fiduciary duty to his/her client. Michel v. Polos Verdes Network Group, Inc., 67 Cal. Rptr. 3d 797, 802 (Ct. App. 2007). Additionally, “a mortgage broker acts in a fiduciary capacity that not only imposes upon him the…

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