REALTORŪ A, a cooperating broker, had shown four houses to Buyer B, and Buyer B's wife had asked to see one of them a second time. There was a third inspection, and a fourth. They seemed at the point of decision but said they would like to "sleep on it." When there was no word the next day, REALTORŪ A called. Buyer B said he was a bit hesitant on the price;
that some transfers of executives in his company had been rumored; that this could affect him within the year; that he hesitated to buy at a price that might mean taking a loss if he should be transferred within a year.
REALTORŪ A tried to reassure the prospect by telephone. Then he dictated a letter stating that the house was an exceptional bargain at the asking price and "our office guarantees to get your money out of it for you any time in the next year if you should need to sell." Buyer B came in and signed the contract.
Six months later, Buyer B came to REALTORŪ A as a seller. He was being transferred. He would need to get his equity out of the house to be able to afford a purchase in the new community. REALTORŪ A listed the house at the price Buyer B had paid for it. After a month there had been no offers. Buyer B reminded REALTORŪ A of his written assurance that his office
had guaranteed he would get his money out of the house within the year.
REALTORŪ A explained that the market had become much less active and that Buyer B might have to reduce his price by $10,000 to $15,000 to attract a buyer. Whereupon, Buyer B filed a complaint with the Board of REALTORSŪ charging REALTORŪ A with misrepresentation, exaggeration, and failure to make good a commitment. After examination of the
complaint, the Grievance Committee referred it to the Professional Standards Committee for a hearing.
What did the Hearing Panel Decide?
