Case when Overpricing is a Violation of the Code of Ethics

QUESTION: Sir John, I am a licensed real estate broker. A real estate owner listed her property with me, selling at P10M on a 5% commission. I offered it to a buyer at P11M, with P1M overprice and he wants to buy it. Did I violate anything?

ANSWER: YES. You violated Section 3(C) of the Code of Ethics.

The Code of Ethics has rules in Relation to Client and Customer. Section 3 (c) He should not accept any commission, fee or any valuable consideration from any party in any transaction except from his client unless with the full knowledge and consent of all the parties in the transactions. He shall not also introduce or work for an overprice either from the buyer or seller, except the usual standard rate of commission on any real estate transaction.

Read more on the Code of Ethics of Real Estate Service at http://petalcorin.blogspot.com/2010/07/code-of-ethics-in-philippine-real.html

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