The objective of this blog about Anomalies, Fraudulent Schemes, and Scams in the real estate service sector is to warn the public and alert government authorities.
The foundation of this blog is knowing (A) the legality as to when should a broker accountable to the transaction and be entitled to a commission, and (B) the legality of conveying and acquiring real estate.
The three major elements to consider as broker entitlement factors are (1) Authority to Broker evidenced by license, (2) Authority to Represent a Client evidenced by a professional engagement contract with the client, and (3) Procuring Cause.
Aside from the brokerage contract or listing agreement that a broker signs up with a property owner, the broker must establish that he is significant to the Procuring Case of the sale.
The term "procuring cause" in describing a broker's activity, refers to a cause originating a series of events which, without break in their continuity, result in accomplishment of prime objective of the employment of the broker - producing a purchaser ready, willing and able to buy real estate on the owner's terms.
A broker will be regarded as the procuring cause of a sale, so as to be entitled to commission, if his efforts are the foundation on which the negotiations resulting in a sale are begun. The broker must be the efficient agent or the procuring cause of the sale. The means employed by him and his efforts must result in the sale. He must find the purchaser, and the sale must proceed from his efforts acting as broker.
We, Licensed Brokers are professionals, just like Doctors and Lawyers and Engineers and Nurses. We follow government procedures and Code of Ethics. In my opinion, anything that is being done by any person (brokers and non-brokers alike) that violates Government Procedures and our professional Code of Ethics are classified as Anomalies, Fraudulent Schemes, and Scams.
Anomalies, Fraudulent Schemes, and Scams are activities that is disadvantageous to government, disadvantageous to the general public or the real estate customers in general, and disadvantageous to the profession of real estate service.
The intent behind the dark heart of those who practice Anomalies, Fraudulent Schemes, and Scams is always associated with monetary gain.
When I use the word anomaly in this blog, I don't always necessarily mean "absolutely illegal". Anomaly is something I refer to as is any occurrence or object that is strange, unusual, or unique. It can also mean a discrepancy or deviation from what is supposed to be the correct way of doing things according to an established rule or trend. In terms of gravity of violation, I would classify an Anomaly as a mild violation, but still has to be eradicated.
I use the term Fraudulent Scheme when it involves falsification of material documents, production of counterfeit/fake documents. In terms of gravity of violation, I would classify Fraudulent Scheme as serious crime that has to be exposed and stopped.
I use the term Scam when the massive scale deceit is involved. A scam is highly organized, systematic, and uses legitimate business as fronts. Most Scams are connected to corrupt government officials -- obviously those who are supposed to detect and stop the scam. Scams victimize not only individuals but population in wholesale numbers. When a scam is exposed, it normally reveals thousands of victims. In terms of gravity of violation, I would consider a Scam as extremely serious crime that has to be exposed and stopped.
If you want to comment about this article, there is a provision for this purpose that you can find below. Thank you so much for visiting my site. May God Bless You!