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 …show more content…
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 duty of acting in the highest good faith toward his principal but also precludes the agent from obtaining any advantage over the principal in any transaction had by virtue of his agency.” Brewer v. Indymac Bank, 609 F. Supp. 2d 1104, 1119 (E.D. Cal 2009). From the above statements, it is clear that Mr. Salesperson breached his fiduciary duties when he violated the professional code of …show more content…
Existence of a valid contract can be proven through written documentation. Furthermore, through the breach of fiduciary duties we can show an excuse for non-performance and subsequent failure to perform. Presenting crucial evidence, such as receiving a termination notice regarding the contract to purchase real estate before the earnest money deadline passed, will substantiate the claim. Damages were incurred in the preparation for purchase of the property.
The breach of fiduciary duties can also bring about a suit based on fraudulent conduct. Including a fraud claim to the instant case would be beneficial because both causes of action (breach of duty and fraud) are so intertwined that one may be dependent upon the other. Under California law, Sam Salesperson committed fraud when he promised an extension, but never filed or intended to file said extension, and when he failed to disclose pertinent information regarding the property. Cal. Civ. Code § 1710. Fraud falls under tort law, meaning a civil wrong. To prove a tort was committed, duty, breach of said duty, causation, and damages must be proven. One owes a duty not to cause harm or interfere upon another’s rights. Cal. Civ. Code § 1708. Mr. Salesperson’s fraudulent conduct is the foreseeable proximate cause which breached said duty of care and produced the harm
Additionally, Mr. Salesperson verbally agreed, on two different …show more content…
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 duty of acting in the highest good faith toward his principal but also precludes the agent from obtaining any advantage over the principal in any transaction had by virtue of his agency.” Brewer v. Indymac Bank, 609 F. Supp. 2d 1104, 1119 (E.D. Cal 2009). From the above statements, it is clear that Mr. Salesperson breached his fiduciary duties when he violated the professional code of …show more content…
Existence of a valid contract can be proven through written documentation. Furthermore, through the breach of fiduciary duties we can show an excuse for non-performance and subsequent failure to perform. Presenting crucial evidence, such as receiving a termination notice regarding the contract to purchase real estate before the earnest money deadline passed, will substantiate the claim. Damages were incurred in the preparation for purchase of the property.
The breach of fiduciary duties can also bring about a suit based on fraudulent conduct. Including a fraud claim to the instant case would be beneficial because both causes of action (breach of duty and fraud) are so intertwined that one may be dependent upon the other. Under California law, Sam Salesperson committed fraud when he promised an extension, but never filed or intended to file said extension, and when he failed to disclose pertinent information regarding the property. Cal. Civ. Code § 1710. Fraud falls under tort law, meaning a civil wrong. To prove a tort was committed, duty, breach of said duty, causation, and damages must be proven. One owes a duty not to cause harm or interfere upon another’s rights. Cal. Civ. Code § 1708. Mr. Salesperson’s fraudulent conduct is the foreseeable proximate cause which breached said duty of care and produced the harm