Real Estate Case Study: Ethical and Legal Analysis of Scenarios

This document presents a real estate case study, analyzing ethical and legal issues in property transactions. The assignment includes two case studies. The first case study examines a scenario where a real estate salesperson, Marissa, faces an ethical dilemma when trying to purchase an apartment. The second case study analyzes the Estate Agents Act, 1980, focusing on restrictions on agents purchasing property. The analysis covers ethical considerations, legal implications, and potential penalties for non-compliance with the act. The document provides answers to specific questions related to the cases, discussing the roles and responsibilities of real estate agents, potential conflicts of interest, and the importance of ethical conduct in the real estate industry. The student provides detailed answers to the questions raised in the case studies, highlighting the importance of adhering to legal and ethical standards in real estate practices. References to relevant literature are also included.

Running head : REAL ESTATE
Real estate
Name if the student
Name of the university
Author’s note

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Table of Contents
Case study 1:..............................................................................................................................2
Answer to question a:.............................................................................................................2
Answer to question b:.............................................................................................................2
Case study 3:..............................................................................................................................3
Answer to question a:.............................................................................................................3
Answer to question b:.............................................................................................................3
Answer to question c:.............................................................................................................3
Answer to question d:.............................................................................................................3
Answer to question no e:........................................................................................................4
Answer to question f:.............................................................................................................4
References:.................................................................................................................................5

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Case study 1:
Answer to question a:
Marissa being a registered a sales person with ABC real estate company. However she
wants to purchase an apartment in a quiet place since she has to work on night shift and needs
to sleep in morning. Hence she was looking for an apartment which would meet all her
requirement. However Graham is also looking for a same kind of apartment and accidentally
he has shown his interest on the same apartment which Marissa had listed. Hence Marissa
could tell graham about the church which is established in near the apartment. Since Graham
had also shown his interest on purchasing the apartment which Marissa had listed earlier?
Hence there could be issues like the person who had the first preference in choosing the
apartment will have the upper hand. However the second person who gets the chance of
purchasing the house will be eligible to purchase the house only if the first person is no
longer interested to purchase the house anymore. Hence this could be the ethical issue
relating to the scenario.
Answer to question b:
Since Marissa and Graham both have shown interest over the same apartment and
Marissa having the first preference will be eligible to buy the apartment first. However next
to the apartment there is a church in which each Sunday morning the bell rang and the place
gets noisy. Since Marissa is looking for an apartment in a quiet place and this is a crowded
place hence it is advisable to Marissa not to pick the apartment. However the apartment is
listed for two months and she wants to close the deals within the two months before she leave
for holiday. Hence it is advisable that she should not buy this house since it is not matching
her requirements.

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Case study 3:
Answer to question a:
Section 55 of the Estate Agents Act, 1980 describes the restriction on agent
purchasing property along with the verdict regarding the act which describes the beneficial
interest on real estate and the commission part which is associated with the act. Apart from
that the act also states about the penalties associated with the study and the imprisonment
rules and regulation relating to the act.
Answer to question b:
This act states that an estate agent must not obtain a beneficial interest in any real
estate or any business which the business agent has been commissioned by any principle to
sell. However 240 penalty units will be imposed or imprisonment or both will occur in case
of the estate agent does not get to fulfil any of the above issue (Adnan et al., 2017).
Answer to question c:
As per the requirements of this section it is stated that an estate agent must not impose
any beneficial interest in any real estate business if the estate is been commissioned by any
principle to sell. In this case study Rashid have engaged Rita to sell his property. Since Rita’s
brother was also looking for a house in that area hence Rita have told his brother about the
house. Hence this section does not match Rita’s requirement.
Answer to question d:
The exemptions of section 55 of the real estate act are as follows –
1. Obtained vendors written acknowledgment that if the vendor is aware if and the
consents to the possibility that the vendor may obtain the interest.
2. Acted fairly and honestly to the transaction.

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3. Ensured no commission or reward is payable to the transaction.
Answer to question no e:
If an estate agent does not get any beneficial interest on any real estate purchase,
hence the estate agent will be penalized of 240 units and may also get imposed of
imprisonment of 2 years or both. Other than that if the agents representative employed by an
estate agent and must not obtain any beneficial interest in the real estate purchase which has
been commissioned to sell, in that case also 2 years imprisonment or 240 penalty units or
both will be imposed (Connolly, 2014).
Answer to question f:
Since Rashid had appointed Rita to perform the job if selling his property and Rita’s
brother had also been looking for a house in the same place, therefore Rita had told her
brother about the house o heck whether he is interested to purchase that one. Since Marco had
not yet show his interest to purchase the house, therefore he will not be penalized. However it
is advisable that she had no legal problem in telling about the house.

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References:
Adnan, Y.M., Daud, M.N., Alias, A. and Razali, M.N., 2017. Importance of soft skills for
graduates in the real estate programmes in Malaysia. Journal of Surveying, Construction and
Property, 3(2).
Connolly, N.D., 2014. A world more concrete: Real estate and the remaking of Jim Crow
South Florida. University of Chicago Press.