Reference no: EM131035971

TAKE-HOME ASSIGNMENT

INSTRUCTIONS:

The objective of this exercise is to tie together the core concepts we have been discussing after the first quiz. You may not collaborate and your typed response must be emailed to me ([email protected]) no later than 11:59 p.m. on the final day of our class. You may utilize the textbook. There is no page restriction.

HYPOTHETICAL:

You are an agent with Number One Realty Corp., a Philadelphia-based real estate company. First-time homebuyers, Mr. and Mrs. Naivete, respond to a listing they came across in last Sunday's Inquirer. Mr. Naivete is in a wheelchair due to a sports-related injury from back in college. You recall from your conversation, because you know that your office does not have any signage related to discrimination laws. Your boss thinks they're aesthetically unpleasing and just plain "dumb". You're not even sure the building has enough access for a wheelchair, although the building is brand-new. The last time someone tried to maneuver, her hand got wedged between a handrail and an open door.

As fate would have it, the broker-of-record in your office, Mr. Trumped, has the listing. His clients, Mr. and Mrs. Cashinginger, have been trying to sell their primary residence for months, with literally no offers. The catered open houses, caviar, Crystal champagne and free Phillies tickets, have not been doing the trick, much to the seller's chagrin. The sellers have even offered an off-the-table bonus to any agent that can make is happen. The home, located in Washington Square, is selling for 1 million dollars. Comparable homes have been selling sporadically for closer to $750,000. But in order to get the listing, your broker agreed to put a higher price tag on the home. In fact, everyone in the office knows the place is overpriced and has a serious mold problem, which the sellers want to conceal. They bought the home that way and the sellers in that deal conveniently omitted that information. The feeling of the Cashinginger's is that they should not lose money because of something they did not even cause.

It is Saturday morning and the Naivete's have decided to come to your office to engage your services. Their objective is to make a low-ball offer later that afternoon. They want to offer $700,000.00 because they believe these sellers are more desperate than they might appear. They actually think the sale could be a short sale situation because of the existing mortgages against the property. Your new clients want you to review their options and assist them with a strategy to essentially steal their dream home. They want

the deal to be contingent on "all of the usual contingencies." Plus they will need to close the deal within two weeks because their lease terminates at that time. Finally, they want to open a doggie spa on the first floor.

Your clients' car just pulled up, a silver Bentley sedan, without handicap plates, although they park in the handicap spot. To your relief, Mr. Naivete, dressed in tattered clothing, walks over to the entrance without a limp or even the slightest sign of immobility. You overhear Mrs. Naivete on the phone, who is winding up a conversation with what appears to be a friend. She said "And we're here. Gotta jump. Anyway, don't say anything about the other realtor. We didn't sign anything anyway, so screw him. And by the way, I can't wait to see Mr. Cashinginger's face when he realizes who I am. That idiot plastic surgeon may have thought he won the battle. But I will win the war for my mom. Her nose is still crooked. That's for sure. I'll tie up this property until I'm six feet under. Ciao." Mrs. Naivete clicks "Off" and turns to you with a devilish smile. "And you must be..."

Please list the possible issues/concerns/problems that may be associated with the representation and deal. Focus on agency, ethics/fair housing, listing/buyer representation agreements, agreements of sale and any corresponding documents. Feel free to number or bullet-point the issues/concerns/problems you want to raise. Then describe its significance, the possible ways to address it and your recommendation with the best way to proceed. There is no one right answer although I am looking for various, key responses.