public site  |  contact  |  join us  |  members only / forms
REALTOR® Resources

Code of Ethics Case Studies

Case #1-8: Knowledge of Essential Facts

Client A listed a small house with REALTOR® B who obtained an offer to buy it and a deposit in the form of a check for $2,000. Client A agreed to accept the offer, then heard nothing from REALTOR® B, the listing broker, for three weeks. At that time REALTOR® B called him to say that the sale had fallen through and that the buyer's check had been returned by the bank marked "Not Sufficient Funds."

Client A complained to the local Board of REALTORS® against REALTOR® B charging him with dilatory and unprofessional conduct and apparent unfamiliarity with essential facts under laws governing procedures in real estate transactions.

At the hearing, it was established that two days after making the offer the buyer had refused to sign escrow instructions, and that REALTOR® B had not deposited the buyer's check until ten days after receiving it.

REALTOR® B's defense was that since the return of the check he had received numerous promises from the buyer that it would be made good, and that the buyer's reason for refusing to sign escrow instructions was to give the buyer's attorney time to read them. Questioning during the hearing established that the check had not been made good, the escrow instructions had not been signed, and that the delay had caused great inconvenience and possible loss to Client A.

Based on your understanding of the Code of Ethics Article 1, what do you think the hearing panel concluded? Show Answer

Register for multiple classes
1:30 PM - 3:00 PM
Reverse Mortgages
9:30 AM - 12:30 PM
MD Legislative Update
1:30 PM - 3:00 PM
MD Fair Housing
9:30 AM - 12:30 PM
MREC Required Supervision
8:00 AM - 11:00 AM
Legislative Breakfast
1:30 PM - 4:30 PM
MREC Agency-Residential
PGCAR's Legislative Impact
Sign up for future calls to action
September Home Sales
PGCAR website advertising
The Voice for Real Estate in Prince George's County
© Copyright 2001-2017 by the Prince George's County Association of REALTORS® Inc.   All Rights Reserved.
Developed and Hosted by CyberVillage Networkers, Inc.

Prince George's County
Association of REALTORS®
9200 Basil Court, Suite 400  |  Largo, MD 20774
Phone 301-306-7900  |  Fax 301-306-8273
PGCAR Facebook link   Full Site link