Question
Goofus is a salesperson for Acme Realty. Faye, a wealthy widow who wants to sell her home and move into a condo, is about to
Goofus is a salesperson for Acme Realty. Faye, a wealthy widow who wants to sell her home and move into a condo, is about to list her property with him. When Goofus tells Faye his commission rate is 6.75%, she balks and says that the amount seems excessive. Goofus explains that the rate is set by the local MLS and he's not permitted to charge any less than that. After signing the listing agreement, Faye instructs Goofus to show her home only to potential buyers "whose background is similar to mine and my neighbors'." She also asks Goofus not to show the home during the evening on weekends. Goofus agrees to follow Faye's instructions. Goofus also wants to sell his own home, which he has almost finished renovating. The only work left to be done is fixing the leaky roof. Knowing that the roof work will be completed in the next month or so, Goofus places the following ad in the city newspaper: "Beautiful 2BD, 2BA house, fully renovated. Move-in condition! Desirable location; safe neighborhood. $318,000. Call today! (818) 555-5555. He receives several calls about the listing and arranges to show the house to a potential buyer named Harrison. Goofus informs Harrison that he is both the property seller and a licensee. Goofus picks Harrison up at the Acme Realty office and drives him back to his house. Harrison is impressed by the landscaping and the upgraded kitchen. He says,"You weren't kidding; this house really is in move-in condition!" He decides to make a full-price offer on the spot. Goofus fills out a purchase agreement form for both of them to sign, and he accepts Harrison's check as a good faith deposit. He doesn't give Harrison a copy of the contract or any other documents.
Discuss any license law violations you find ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started