PA300-2: Analyze the elements of a real estate contract and remedies for breach.
GEL-7.1: Identify ethical issues within the field of real estate law.
PC-1.2: Contribute to team goals and objectives through active participation and collaboration.
Instructions
Contracts play a significant role in real estate transactions. A contractual agreement in any aspect will set forth each party’s rights and obligations relative to the subject matter and transaction at hand. Contractual principles can also relate to the real estate professional’s ethical and professional duties as well as the legal professional’s ethical and professional duties.
Scenario
Anna’s mother recently passed away. Her mom lived out of state and had her own house in Arizona. Anna was referred to Sally Sellsmore, by a friend of the family, to assist her with the sale of her mom’s home. She signed a representation agreement with Sally.
A few weeks later, Sally contacted Anna. She informed her that she found a purchaser for the home; she did disclose that she was also the purchaser’s agent. The offer was well under the asking price. Sally indicated that it was currently a buyer’s market, and Anna might want to seriously consider the offer. Because Anna lives so far away, she agrees to the sale. She accepts the offer. The sale goes through.
A few days later, Anna later discovered through the friend that referred her to Sally that the purchaser was Sally’s brother-in-law. Anna is very upset with the circumstances. She sues both Sally and the brother-in-law.
Instructions
(1) Collaborate this week in the teams your instructor has assigned to discuss the above scenario and address the following questions:
What are the ethical issues in the scenario? Refer to Code of Ethics and Standards of Practice of the National Association of REALTORS®
Please identify and explain the general principles and elements of a contract. Do we have an enforceable contract?
Identify one cause of action; be sure to identify all of the elements associated with the cause of action and the remedies that would be available.
(2) Using the Unit 3 plan, complete the exercise. Be sure to hold at least one meeting with your team members, to ensure that you all concur with the direction and responses.
(3) Draft a memo of roughly 700-900 words in length, that includes an appropriate heading addressed to Anna (To, From, Re, Date)
(4) Do in text citation for all sources, including cases, statutes, rules, etc.
(5) Submit the 2-3 page memo in MS Word document format via the Unit 4 Dropbox.
The viewpoint and purpose of this memo should be clearly established and sustained. Assignment should follow the conventions of Standard English (correct grammar, punctuation, etc.). Your writing should be well ordered, logical and unified, as well as original and insightful. Your work should display superior content, organization, style, and mechanics. Use the appropriate citation style for all citations.
