HYPOTHETICAL: You are an agent with Number One Realty Corp., a Philadelphia-base
ID: 377438 • Letter: H
Question
HYPOTHETICAL: You are an agent with Number One Realty Corp., a Philadelphia-based real estate company. First-time homebuyers, Mr. and Mrs. Naivete, respond to a listing they came across in last Sunday’s Inquirer. Mr. Naivete is in a wheelchair due to a sports-related injury from back in college. You recall this fact from your conversation, because you know that your office does not have any signage related to discrimination laws. Your boss thinks they’re aesthetically unpleasing and just plain “dumb.” You’re not even sure the building has enough access for a wheelchair, although the building is brand-new. The last time someone tried to maneuver, her hand got wedged between a handrail and an open door. As fate would have it, the broker-of-record in your office, Mr. Winner, has the listing. His clients, Mr. and Mrs. Desperate, have been trying to sell their primary residence for months, with literally no offers. The catered open houses, caviar, Crystal champagne and free Phillies tickets, have not been doing the trick, much to the sellers’ chagrin. The sellers have even offered an off-the-table bonus to any agent who can make this deal happen. The home, located in Washington Square, is selling for 1 million dollars. Comparable homes have been selling, sporadically, for closer to $750,000. But in order to get the listing, your broker agreed to put a higher price tag on the home. In fact, everyone in the office knows the place is overpriced and has a serious mold problem, which the sellers are hell-bent on concealing. They bought the home that way and the previous sellers conveniently omitted that information. The feeling of the Cashinginger’s is that they should not lose money because of something they did not even cause. It is Saturday morning and the Naivete’s have decided to come to your office to engage your services. Their objective is to make a low-ball offer later that afternoon. They want to offer $700,000.00 because they believe these sellers are more desperate than they might appear. They actually think the sale could be a short sale situation because of the existing mortgages on the property. Your new clients want you to review their options and assist them with a strategy to essentially steal their dream home. They want the deal to be contingent on “all of the usual contingencies.” Plus they will need to close the deal within two weeks because their lease terminates at that time. Finally, they want to open a doggie spa on the first floor. Your clients’ car just pulled up, a silver Bentley sedan, without handicap plates, although they park in the handicap spot. To your relief, Mr. Naivete, dressed in tattered clothing, walks over to the entrance without a limp or even the slightest sign of immobility. You overhear Mrs. Naivete on the phone, who is winding up a cell phone conversation. She said, “And we’re here. Gotta jump. Anyway, don’t say anything about the other realtor. We didn’t sign anything anyway, so screw him. And by the way, I can’t wait to see Mr. Desperate’s face when he realizes who I am. That idiot plastic surgeon may have thought he won the battle. But I will win the war for my mom. Her nose is still crooked. That’s for sure. I’ll tie up this property until I’m six feet under. Ciao.” Mrs. Naivete clicks “Off” and turns to you with a devilish smile. “And you must be…”
Describe all possible issues/concerns/problems that may be associated with your agency representation and the deal itself. Focus on agency, ethics/fair housing, listing/buyer representation agreements and agreements of sale. Cite to all facts and supporting law, giving arguments on both sides and then your recommendation as to how you would proceed in your capacity as an agent. You are not giving legal advice.
Explanation / Answer
The possible issues/concrrns/problems related to my the agency representation and deal itsepfs are as follows:
1. Mr. And Mrs. Naivete are the fist time home buyers and with the conversation I have found that they are the physically disabled person. My office don't have any signage related to discrimination laws so it is the matter of concerns that how to deal with these people.
2. My boss thinks that they are the aesthetically unpleasing and plain dumb.
3. I am not very sure about that my new building have the wheelchair entrace or not.
4. As the last time when some one came with the disabilities issue with them they got injured and then the broker record was in the list got effected.
5. Miss appropriate deal was there as the seller didn't offer any offers in the home selling and trying to pay extra to the broken so that he can arrange the deal.
6. The property which is going to sell was overpriced as $1 million actually it was $750,000. This everyone know and they also know that there is a mold problem with this place property. Buyer don't want to pay extra amount for that property. But my broker listed this property on the higher amount.
7. Now the buyer only offering $700,000 for the property after the knowledge of overpriced, the desperate of seller and mortgage on the property.
8. They want to close the deal with in less time duration as 2 weeks.
As per the problems associated with the above mentioned senarios, my recommendations would be that Mr. and Mrs Naivete should not force the agent that he should sell the property to them as they are physically handicapped and there is no path for them and also the law of discrimination they don't follow. So they both won't get benefit with this law. The deal is happening when the buyer and seller should negotiate on the some common benefits. As the property price is overpriced and the seller don't want to give offers to the buyer so it is not just a ethical practice they follow. I would recommend that they have to look into this as they are paying to the agent from the off table that amount they should pay offer something to buyer so that they can arrange a deal. The time to make the deal happening would also not solved within 2 weeks duration so they might have come before so that the agent would help in the better possible time schedules. In order to make the bill of sale and agreement papers agent should have to have the time for this and a proper understanding between two parties. It is better that both parties should have understanding in the negotiation of deal as latter it may become conflict.
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