X
                        RISMedia's ACE
Search
Exact matches only
Search in title
Search in content
Search in comments
Search in excerpt
Filter by Custom Post Type
{ "homeurl": "http://rismedia.com/", "resultstype": "vertical", "resultsposition": "hover", "itemscount": 4, "imagewidth": 70, "imageheight": 70, "resultitemheight": "auto", "showauthor": 0, "showdate": 0, "showdescription": 1, "charcount": 3, "noresultstext": "No results!", "didyoumeantext": "Did you mean:", "defaultImage": "http://rismedia.com/wp-content/plugins/ajax-search-pro/img/default.jpg", "highlight": 0, "highlightwholewords": 1, "openToBlank": 0, "scrollToResults": 0, "resultareaclickable": 1, "autocomplete": { "enabled": 1, "googleOnly": 1, "lang": "en", "mobile": 1 }, "triggerontype": 1, "triggeronclick": 1, "triggeronreturn": 1, "triggerOnFacetChange": 1, "trigger": { "delay": 300, "autocomplete_delay": 310 }, "overridewpdefault": 0, "override_method": "post", "redirectonclick": 0, "redirectClickTo": "results_page", "redirect_on_enter": 0, "redirectEnterTo": "results_page", "redirect_url": "?s={phrase}", "settingsimagepos": "left", "settingsVisible": 0, "hresulthidedesc": "0", "prescontainerheight": "400px", "pshowsubtitle": "0", "pshowdesc": "1", "closeOnDocClick": 1, "iifNoImage": "description", "iiRows": 2, "iiGutter": 5, "iitemsWidth": 200, "iitemsHeight": 200, "iishowOverlay": 1, "iiblurOverlay": 1, "iihideContent": 1, "loaderLocation": "auto", "analytics": 0, "analyticsString": "", "show_more": { "url": "?s={phrase}", "action": "ajax" }, "mobile": { "trigger_on_type": 1, "trigger_on_click": 1, "hide_keyboard": 0 }, "compact": { "enabled": 1, "width": "200px", "closeOnMagnifier": 1, "closeOnDocument": 0, "position": "fixed", "overlay": 0 }, "animations": { "pc": { "settings": { "anim" : "fadedrop", "dur" : 300 }, "results" : { "anim" : "fadedrop", "dur" : 300 }, "items" : "fadeInDown" }, "mob": { "settings": { "anim" : "fadedrop", "dur" : 300 }, "results" : { "anim" : "fadedrop", "dur" : 300 }, "items" : "voidanim" } }, "autop": { "state": "disabled", "phrase": "", "count": 10 } }
Select Page

Victor O. Schinnerer’s “War Stories” are actual claims from company files with the names and some details changed for confidentiality. Here, read about a foreign buyer who sued his agent after his legal residency status resulted in his mortgage company canceling his contract.

The Facts
In the process of buying a home, a client of El Salvadoran descent contacted a broker and entered into a buyer-agent agreement. The client was extremely excited to have a broker working on his behalf and agreed to pay a $200 fee and as well as a 3 percent commission. The agreement stated:

• The seller’s deposit would be credited toward the commission
• Commission would be payable upon transfer of title
• Commission would be payable if the title didn’t transfer based on any action or default of the buyer

Shortly after signing the buyer-agent agreement, the client found a home under construction and entered into a contract.

The client was pre-qualified by a mortgage company for which an associate broker, working in the same firm as his agent, was the president.

A few days before closing, the client received a call from the mortgage company informing him that due to his legal residency status, he was unable to obtain a conventional loan and that the contract would be terminated as a result.

Risk Factor No. 1
Your fiduciary duty as a real estate professional is to be absolute and undivided in your loyalty; there should be no hint of any conflict of interest. This requires diligence, faithful service, integrity, utmost care, honesty, good faith and full disclosure.

When the client called his REALTOR® asking for the return of his commission, the REALTOR refused. He told the client that the commission was for services rendered and that all fees paid were non-refundable. However, when the client reviewed his agreement he found no language to that effect.

Risk Factor No. 2
No real estate professional ever expects to be sued. But the unexpected does happen so it’s important to be prepared. And the key to being prepared is to document everything! Documentation is crucial when facing an angry homeowner.

The client contacted the State’s Fair Housing Office to file a complaint and they decided to review other buyer-broker agreements of the mortgage company and real estate firm. They found that no other buyers of Hispanic or El Salvadoran origin were requested to pay commission prior to closing.

However, the real estate board determined that the investigation of the complaint established prima facie evidence of discrimination under State code and therefore reasonable cause existed to believe there was unlawful discriminatory housing practices.

The Result
This case was eventually settled for $17,500 and the client subsequently obtained an FHA loan and purchased a home.

Real estate professionals have an obligation to treat every buyer with the same standards and each buyer has the right to equal housing opportunity. It is unethical and illegal to discriminate because of a person’s race, color, religion, nationality, age, familiar status and physical and mental capacity.

Submitted by Victor O. Schinnerer & Co., Inc. For more information visit www.schinnerer.com/realestate. To contact the company for more information, call 301-961-9800.

Any examples in this article are for illustrative purposes only and any similarity to actual individuals, entities, places or situations is unintentional and purely coincidental. This material is not intended to establish any standards of care or to serve as legal advice appropriate for any particular factual situations. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured.

Copyright © 2008 Victor O. Schinnerer & Co. Inc. All rights reserved.


Buying/Selling Consumer Luxury National Spotlights
House chart , This is a computer generated and 3d rendered image.
August Brings Hottest Housing Market in a Decade, Says REALTOR.com

A record-breaking summer for the residential real estate market continued in...

Beverly Hills Street, California, USA
In LA, a Walkable Neighborhood Comes at a Price

(TNS)—Nobody walks in LA, as the saying goes. But many people...

Home For Sale Real Estate Sign in Front of Beautiful New House.
Existing-Home Sales Stumble in July

Slowed by frustratingly low inventory levels in many parts of the...

Agent Broker Coaching Lead Gen Teams
Handshake of a two businesswomen after closed deal
Recruiting and Retaining in Today’s World

“Times are changing” is a phrase that’s been uttered by countless...

education_tip_concept_NAR_Series.jpg
Education Insider: RPR’s Learning Site Is Blowing Our Mind

A couple weeks ago, Realtors® Property Resource (RPR) announced its brand...

A businessman on a track ready to run
Going the Extra Mile for Buyers and Sellers Alike

With a longstanding reputation in the Beaumont, Texas, marketplace, Andy Hemmings—executive...

Agent Best Practices Branding Broker Niche
Digital composite of businesswoman touching interface with profile pictures
Four Tips to Fuel Your Online Presence

Social media is a prime way to both connect with potential...

Hispanic family with laptop at home smiling
Back-to-School Marketing Ideas

As families gear up to send the kids back to school,...

Word Cloud with Lead Generation related tags
Ask the Expert: How Much Should You Spend on Lead Generation?

Today’s “Ask the Expert” column features Arthur Darmanin, Chief Executive Officer...

Agent Apps/Gadgets Best Practices Broker Innovation
financial stock price
5 Ways Big Data Is Changing Real Estate

Every facet of the business world has been radically changed by...

Computer keyboard with loupe concept
Maximizing Exposure with Unique, Interactive Domains

When it comes to finding your target audience, proper listing exposure...

Silhouette of business people moving and joining pieces of jigsaw puzzle on a business and stock market  blue background, with charts, diagrams, world maps and data arranged on grid and tables. World maps showing continents and countries with economy data and growth diagrams. Light glowing from the center. Copy space on bottom.
PNC Offers Online Business Insights, Webinars and Tools for Agents

Looking for the latest real estate industry information, education and networking...

Business Insights Content Generation Marketing Trends
Nizhnevartovsk, Russia - June 12, 2013: Man hand holding iPhone 5 with Instagram App. iPhone is product Apple Inc. Instagram is an online photo-sharing and social networking service.
Visual Storytelling: Tips for Mastering the Art of Instagram

Creating and implementing a consistent social media strategy is vital for...

"Paris, France - May 27, 2012: Instagram logo on Apple iPhone display"
Instagram Is Open for Business—Find Out What This Means for Real Estate

Last week, Instagram released some major updates that could create a...

instagram_update_2
Story Time: Move Over Snapchat, Instagram Wants In

Are you using Snapchat in your real estate business? Well, you should...

Buying/Selling For Your Clients Home Improvement How-To Lifestyle
Cheerful teenager girl with earphones doing homework on sofa at home
Pros and Cons: Buying a Property for a College Student

There’s no way around it, supporting a college student can be...

A beautifully staged modern living room within a Victoria, BC condo.
5 Dirt Cheap Home-Staging Ideas

(TNS)—We all want to make our houses look like they are...

happy family jumping together on the beach
5 Reasons to Make Family Travel a Priority

(TNS)—Whether you take advantage of last-minute travel deals or organize a...

manhattan
RISMedia’s CEO Exchange

RISMedia’s 2016 Real Estate CEO Exchange September 13 & 14, 2016...

Capital Building, Washington
RISMedia’s Power Broker Forum at the NAR REALTORS® Legislative Meetings & Trade Expo

RISMedia’s Power Broker Forum at the REALTORS® Legislative Meetings & Trade Expo...

PB-annual
RISMedia’s Power Broker Forum, Reception & Dinner – Annual

RISMedia Power Broker Events 2016 Orlando, Fla. Friday, November 4, 2016...