Real Estate Question


Question #1 – 50 points

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(a) What, if any, actions violate Pennsylvania licensing law? (1½-2 pages)

(b) The facts state that Khat paid Hoek a fee. Was he required to do so? (2-3 sentences).

Ren Hoek is a licensed Pennsylvania salesperson who works for Broker Mudskipper. Without notifying Broker Mudskipper, Hoek entered into a verbal agreement with Stimpson J. Khat, an old friend, who owned a home in desperate need of repair in a slowly gentrifying neighborhood.

The house was an inexpensive “handyman” special.

Per their agreement, Hoek found someone in his social network who was interested in purchasing the property. Hoek introduced Khat to Ben Horse who was interested in purchasing the property for cash. They all met in the kitchen of Hoek’s residence to work out an agreement of sale.

Before the transaction was consummated, Horse gave Hoek a deposit in the amount of $1,350.00 which Hoek placed in his personal bank account until settlement.

After the property was sold by Khat to Horse, Khat paid Hoek a fee in the amount of $2,000.00 for his assistance in drafting the agreement of sale, for composing and filing the deed which transferred the property from him to Horse, and for introducing him to Horse.

During the real estate transaction, Horse did not have representation.

Horse was referred to Hoek by Corn N.T. Cobb, a former client of Hoek. After the real estate transaction was completed, Hoek gave Cobb a fee in the amount of $350.00 for the referral.

Question #2 – 50 points

(a) What, if any, prohibited conduct has occurred in the following? (3 sentences each or a short paragraph (including answer to subparts (a) and (b) of this question)

(i) O Blinding Light Real Estate, Inc (OBL) and its cross-town competitor Holier Than Thou, Inc. (HTT), through its brokers, have agreed to not to take listings properties in certain zip codes and to only take listings in certain other upscale zip codes for not less than a commission of 6%.

(ii) HTT has an internal office policy that all buyers must use Allie Boy Pest Control for Termite Inspections as a condition of using HTT’s services

(iii) OBL has an internal office policy that all salespersons must charge a commission of 6% for all listings under $100,000.00.

(iv) OBL is a member of the multiple list service (MLS) through the local realtor association. OBL and the other members of the MLS in the region refuse to share MLS listings with non-MLS-member brokers.

(b) Does this any of this conduct have legal consequences? If so, what are the penalties?

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