Real estate professionals have a duty to prioritize the needs and interests of their clients above their own.
One way they can do this is by following the rules set forth by the real estate commission, including the prohibition on self-dealing.
Self-dealing refers to when a real estate agent makes a real estate transaction for their own benefit, rather than for the benefit of their client. This can include buying or selling property for themselves or for a family member, without disclosing this information to their client.
The Viral Tik Tok Video
In a TikTok video shared on the platform, a real estate agent named "Jeremy" is accused of violating this rule by making a real estate transaction for his own benefit without disclosing it to his client, Ted Cruz.
According to the video, "Jeremy" allegedly made a deal to buy a property he had listed for Mr. Cruz at a discounted price without disclosing to Mr. Cruz that he was the owner of the LLC that submitted the lowball offer on the property. If these allegations are true, it could be considered a serious breach of trust and could result in disciplinary action by the appropriate real estate commission.
Rules and Laws Violated
It is unclear if is licensed in North Carolina, South Carolina, or both, but "Jeremy" may also have violated NC Real Estate Commission rule 58A .0104(p), which specifically requires listing brokers to disclose in writing conflicts of interest, transfer or terminate listing agreements, and notify the seller-client that they may terminate the listing agreement prior to entering into a contract for a property that the listing broker or firm is listing.
Furthermore, North Carolina General Statute 93A-6(a)(8) and (10) gives the Commission authority to discipline brokers who are unworthy or incompetent to act as real estate brokers in a manner as to endanger the interest of the public, as well as for conduct which constitutes improper, fraudulent, or dishonest dealing.
It is important for real estate agents to always follow the rules and regulations set forth by their governing real estate commission and to fully disclose any potential conflicts of interest to their clients, in writing. Failure to do so can damage the reputation of the agent and the industry as a whole. The allegations against "Jeremy" serve as a reminder of the importance of adhering to professional standards and maintaining the trust of clients.
What do you think Ted should do about this situation? Post a comment below or share with a colleague in an upcoming CE Class!