As the exclusive agent of Client A, REALTOR^® B offered Client A's house for sale, advertising it as being located near a bus stop. Prospect C, who explained that his daily schedule made it necessary for him to have a house near the bus stop, was shown Client A's property, liked it, and made a deposit. Two days later, REALTOR^® B read a notice that the bus line running near Client A's house was being discontinued. He informed Prospect C of this and Prospect C responded that he was no longer interested in Client A's house since the availability of bus transportation was essential to him. REALTOR^® B informed Client A and recommended that Prospect C's deposit be returned.

Client A reluctantly complied with REALTOR^® B's recommendation, but then complained to the Board of REALTORS^® that REALTOR^® B had not faithfully protected and promoted his interest; that after Prospect C had expressed his willingness to buy, REALTOR^® B should not have made a disclosure that killed the sale since the point actually was not of major importance. The new bus route, Client A argued, would put a stop within six blocks of the property.

In a hearing before a Hearing Panel of the Board's Professional Standards Committee, REALTOR^® B explained that in advertising Client A's property, the fact that a bus stop was less than a block from the property had been prominently featured. He also made the point that Prospect C, in consulting with him, had emphasized that Prospect C's physical disability necessitated a home near a bus stop. Thus, in his judgment, the change in bus routing materially changed the characteristics of the property in the eyes of the prospective buyer. REALTOR^® B felt it under his obligation to give honest treatment to all parties in the transaction, including Prospect C and that in doing so, he was not violating his obligation to his client.

What do you think the hearing panel concluded? Show Answer