Fiduciary duty when investing- Broker banned for life

Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes

Read this article this morning, and thought it would be of interest to real estate agents and brokers who invest.

In my opinion the mistake was not providing a disclosure that the broker was not acting as an agent to the seller during this transaction.

Looking forward to any thoughts anyone has to share on this subject.

Link is below:

http://realtormag.realtor.org/law-and-ethics/in-co...

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Wayne Brooks

Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes

10y

As it should be. It's bad enough that non licensed scumbags were taking advantage of people with these scam sub2 arrangements, where they had no intentions of paying the mtg.s, let alone RE brokers in the business.

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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
As it should be. It's bad enough that non licensed scumbags were taking advantage of people with these scam sub2 arrangements, where they had no intentions of paying the mtg.s, let alone RE brokers in the business.
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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
10y
Several issues, an agreement was necessary for the broker to act as a buyer, but the broker was also stepping into the foreclosure help you business and probably wasn't qualifies legally to conduct the quit claim $10 deal delaying and circumventing the foreclosure. My guess would be she influenced the lender as a broker, taking charge of the property, under management to pay the past due amounts and future payments.
Not only was she dealing from a predatory standpoint but she also failed in the obligation to pay, there was probably some simple rent skimming on the owner's credit.
The fact that she failed to disclose or obtain a proper agreement was the nail used by the Commission, but obviously there were other ethical and criminal issues, the taking of equity, rents, advising in a foreclosure, interference in a foreclosure (the FBI identified the issues of transferring title in such cases as a foreclosure scam).
If that's all that happened to that Bobo, she's very lucky, this article didn't address any pending criminal matters or civil litigation. The news gal probably just got the information off the Commission's website where such findings are usually made public.
Messing up someone's credit is a serious issue for civil litigation, the borrower is barred from any new mortgage for a year after late payments, they can be denied other loans and the failure to have credit can generate untold financial and opportunity losses.
And, there was also the issue that this Bobo gained the confidence of that motivated seller from acting as a broker, so that led the borrower to the trust they relied upon in dealing with her. That cannot be turned on and off, once established there must be another agreement, disclosures that are agreed to, not just oh, by the way I'm acting as a buyer for myself.
And, why wasn't that done? I bet she hid the fact that she held any interest in that Global entity scam, she just made it sound like, here this bunch can help you!
Hopefully, that's not all she loses, IMO, some bar time is in order and I don't meant drinking bar. :)
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
Justice!
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10y
This is a great example that I am often telling people of about the increased regulation and oversite that comes with being a licensed individual.
All of our real estate activities are under a microscope.
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
@Russell Brazil
Agents/brokers should be looked at considering their responsibilities. I suspect this is why the unlicensed brokers promote their activities so strongly. No oversight. No accountability. No license (except for their drivers license LOL), etc. The broker referred to in this thread got exactly what they deserve.
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
10y
How outrageous. Not that the ban will probably have much of an effect; she can probably work under someone else's license for PM or RE.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
would not matter if you were licensed or not. Bad behavior
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Brandon L.
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Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
10y
@Jay Hinrichs I agree with you, this kind of behavior puts the government spotlight on investors and agents. Makes it harder on everyone doing things the right way.
@Russell Brazil you are absolutely correct. The real estate board, and the courts will have no mercy. There was another example of a wholesaler out in Ohio that was fined $1000 dollars for each of the 284 properties that he did not own, but was marketing online for sale.
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
@Brandon L.
You give the guy in OH too much credit. The proper term is unlicensed broker.
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