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Scenario
You work for a U.S. based company that does home appraisals. While conducting an inspection on a home, you know the home has been contracted to sell for $50,000.00. You come to the conclusion that the home can appraise for $80,000.00. You also know that your sister has been looking for a home in this desirable neighborhood but most homes are well over six figures. You mention to the owner that your sister would be happy to pay $60,000.00 for the home and it would certainly appraise for that. You wink as you walk out the door, after handing the owner your card with your contact information. The owner calls you and says she would accept if your sister made an offer.
What are the elements for a valid contract involving a real estate transaction? Do your comments to the owner constitute a valid contract? why or why not?
If the initial buyer wants to sue the homeowner for breach of contract, what court(s) would have jurisdiction and why?
If the initial buyer wants to sue you for intentional interference with contractual relations, what court(s) would have jurisdiction and why? Could the initial buyer sue your company? Why or why not?
What ethical issues are involved in this situation (consider any personal conflicts of interest and any professional obligations you owe to your company)?
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