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Upper-level assistance required for the attached. thank you

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Ethical Brokerage Operations

This assignment explores the ethical standards that govern
the real estate industry. Brokers, Agents, Mortgage
Bankers, et al., must adhere to strict ethical standards
otherwise penalties such as loss of license can result.

The following Course Outcome is assessed in this
assignment:

MT361-4: Analyze the legal and ethical considerations in a
real estate transaction.

Introduction: 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 looking for his first home that he is
purchasing directly from the owner. The owner says he
knows a good mortgage broker and provides him with a
telephone number. He calls the broker, Kerry, and she sets
up an appointment for the following day to discuss his
needs explaining that there will be a fee for services
rendered and are to be paid in advance.

Parker meets the broker the next day at a shopping center
coffee shop since the broker’s office is undergoing complete
renovation. Kerry asks him a few questions and then tells
him that the best mortgage would be a 6%, 15-year
mortgage for the home he wants to purchase. Kerry says
she will email him the application by the end of the day for
application to the Mountain Bank. She knows the mortgage
banker there and can assure that the loan will go through

Assignment Details

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easily and speedily. She requests payment upfront, and he
gives her a personal check in the amount of $2,000. On the
way home he begins thinking about the meeting and
realizes something is not right. He passes a Savings and
Loan in the neighboring community, goes in to ask about the
mortgage rate, and they respond that it is currently 4% for a
15-year mortgage without knowing the particulars of his
needs. Now he decides to investigate.

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.

What process should Parker have used to secure an
appropriate mortgage for his prospective Tennessee
home?

Explain what actions he should take.

Access the Unit 5 Assignment grading rubric.

Respond in a minimum 350–500 word-paper using APA
format and citation style with additional title and reference
pages. Submit your response to the Unit 5 Assignment
Dropbox.

https://kapextmediassl-a.akamaihd.net/business/MT361/1904c/summarized_code_of_ethics

https://kapextmediassl-a.akamaihd.net/business/MT361/1904c/rubrics/u5_rubric

Code of Ethics: This is a synopsis of some of the most important ethical
considerations you need to be aware of as a professional in the real estate
industry.

Terminology:

Agency: The fiduciary relationship created between a principal and an agent whereby the agent
can act on behalf of the principle for certain transactions. Agency is usually created when the
principal signs a listing agreement to list their property for sale or a management contract to rent
a property for instance.

Agent: The broker or sales associate acting on behalf of the principal (see Agency)

Client: The person with whom the broker or sales associate has a legal contract to represent.

Customer: Is not contractually bound to the industry professional

Principal: Person who hires an agent to act on his or behalf.

Code of Ethics:

#1: The agent has a responsibility to promote the interests of their client(s) and treat all involved
in any real estate transaction in an honest and fair manner. They must disclose if they are a
dual agent (representing both buyer and seller in a transaction) or a designated agent
(represent either the buyer or seller depending on state law), or they are a limited representative
(will provide only certain duties in the transaction per state law).

#2: Agents must openly acknowledge to clients any personal interest they might have in any
transaction prior to showing a property; they must acknowledge any personal relationships
involved. Ex: Agent says, “I want to disclose to you before we look at it, that this property
belongs to is my brother and my sister in-law is his agent.”

#3: The Agent will not allow anyone that is not pre-authorized by the owner, to access the
property of the client.

#4: Never overstate benefits or attributes of a property or opportunity at any time. The agent
must only state the facts.

#5: Terms of compensation with cooperating brokers must be stated before a purchase offer is
made. Only the listing broker or owner can change the listing terms for realtor cooperation
.compensation. All listing brokers must disclose in accordance with the legal codes and statues

for their state, “the dual or variable rate commission” (National Association of Realtors®) if an
agent other than the listing agent sells the property (Barell, 2011, p. 34, Article 3).

#6: No agent can receive kickbacks or payments without having provided a service. Payments
for referrals to adjunct services like inspectors, design services, etc. are not allowed. Agents
cannot receive commission from more than one party without full disclosure and written consent
from all involved in a transaction. A real estate professional cannot promote or recommend
legal, banking, mortgage, appraiser, or home warranty services of any kind. They also may not
make any false statements with regards to any other service firms.

#7 The monies kept for escrow for clients must be placed in a separate account from the
broker’s. There are specific state regulations which govern how this is to be documented and
how funds are to be disbursed.

#8 All transactions should first be explained to any client signing any contract. Additionally all
problems or potential problems or deficiencies should be disclosed to the potential buyers. Ex:
The seller who must disclose defects of a property when they list the property, has told the
listing agent that there has been a severe leak in the main water pipe outside their home, must
disclose this to the agent and the agent in turn must disclose this to the buyer. Another example
would be a public easement allowing people in the neighborhood access to a pathway in order
to access a park behind the subject property.

#9 Any changes, agreements or disclosures should be written, signed and dated by the parties
involved. If not, when there are problems there will be no documentation to corroborate what
was agreed, or disclosed.

#10 There should be no discrimination of any kind. This should include the type of housing or
neighborhood to be shown to a client. In other words you may not steer a client to a particular
neighborhood that predominantly houses that particular race, skin color, age, religious
persuasion, national origin, sex, disability, or based on whether they are single, divorced, or
widowed or a family with children, even if they ask for it. (See Fair Housing laws)

#11 The Agent will not mislead clients or misrepresent themselves or competitors or any of the
facts or assistance that they provide. An estimate of value is just that, it is not the value
according to an appraiser, it only an estimate. Any advertising must be factual and list the
broker’s name on any communicated medium (this includes websites etc.). If there are any
incentives or bonuses etc., they must be fully disclosed and explained how these monies or
benefits may be obtained.

#12 All agents or real estate professionals should cooperate with their local real estate boards
or associations if any ethics violations are charged against them or anyone else they may be
familiar with through a real estate transaction. They may be asked to testify should an
investigation be necessary. Agents are encouraged to report any such violations to their local
boards and associations to improve professional conduct in the profession.

Reference

Barell, D. GRI, DREI (2011). Know the code: Real estate ethics. [Adapted from the National
Association of Realtors® Code of Ethics] La Crosse, WI: Kaplan, Inc. ®