Question

Scenario:

Whilst you have been away on annual leave, the Principal of your agency has exchanged contracts to personally purchase one of your listings. You do not believe that your vendor is aware of the fact that it is your employer, as it has been purchased in a company name and there is no declaration on the file or on the copy of the contract in the file. The cooling off period will expire at 5pm today.

Identify and explain the ethical issue in this scenario, quoting any relevant legislation:

How would you approach this with your Agency Principal to express your concern? Ensure you detail at least 2 communication strategies you would use:

Answer 1

The ethical issue involves a potential conflict of interest due to lack of transparency. A private meeting and written documentation are two communication strategies to address concerns with the Agency Principal.

Step-by-step explanation:

The ethical issue in this scenario involves a potential lack of transparency and conflict of interest. As per relevant real estate laws and ethical guidelines, there must be full disclosure when an agent or principal of the agency is involved directly in a transaction to ensure all parties are aware and can provide informed consent. Without this transparency, the vendor's trust could be compromised, potentially violating professional conduct rules.

To address this with your Agency Principal, communication strategies would include scheduling a private meeting to discuss the concerns openly and professionally as well as documenting the conversation in writing, which provides a record of the concerns raised and any responses or decisions made.