Homework: Ethical Brokerage Operations
Details
This homework 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 homework:
• 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 homework 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 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:
1. Analyze the ethical considerations concerning the scenario based on the code of ethics above.
2. Analyze the legal considerations by doing some research on the Internet.
3. What process should Parker have used to secure an appropriate mortgage for his prospective Tennessee home?
4. Explain what actions he should take.
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
Attachment:- Code-of-Ethics.rar