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Whilst you have been away on annual leave, the Principal of your agency has exchanged contracts to personally purchase one of your listings. You do not believe that your vendor is aware of the fact that it is your employer, as it has been purchased in a company name and there is no declaration on the file or on the copy of the contract in the file. The cooling off period will expire at Spm today. Identify and explain the ethical issue in this scenario, quoting any relevant legislation: In this situation, a conflict of interest and a breach of fiduciary obligation are the ethical problems. The agency's principal nas contracts in place to buy a property privately, but the vendor is not aware of this. The property was listed by one of the agency's employees. The agent's obligation to operate in the vendor's best interest and prevent conflicts of interest may be broken in this circumstance. The following relevant laws address this issue a. The Estate Agents Act (or pertinent law in your jurisdiction): This act often describes the moral and legal duties of raal estate agents, such as the obligation to act in the clients’ best interests and disclose any conflicts of interest b. The Real Estate Institute’s Code of Conduct or a similar industry code: Many real estate firms abide by a code of conduct that covers ethics and conflicts of interest, such as the code of conduct of the Real Estate Institute or a comparable industry standard P How would you approach this with your Agency Principal to express your concemn? Ensure you detail at least 2 communication strategies you would use: To approach the Agency Principal to express your concern, you can use the following communication strategies: a. Request a Private Meeting: Arrange a private appointment to express your concerns with the Agency Principal. This will offer a suitable and private setting for the discussion b. Clearly State the Problem: When dezling with the Principal, be sure to calmly and clearly lay out the circumstances and your worries. To prove your ideas, give particular examples and mention applicable laws or rules of conduct y What steps would you take to ensure this sale can proceed ethically, and how would you appropriately communicate this to the vendor? To ensure this sale can proceed ethically and communicate this to the vendor, consider the following steps: a. Disclose the Conflict of Interest Get in touch with the vendor and let them know that the agency's principal is the purchaser. The vendor should be informed of the potential confiict of interest, and this disclosure should be open and clear. b. Offer the Vendor Choices: Let the Vendor choose how they want to move forward. If they feel that their interests are not sufficiently secured, they may decide to proceed with the sale, bargain for new conditions, or even terminate the agreement ¢c. Seek Legal Advice: Encourage the vendor to acquire legal counsel or representation so that their interests and nghts are protected during the transaction 7~ List two (2) penalties that could apply to the agency if you were to ignore what has happened and let the sale proceed. If you were to ignore what has happened and let the sale proceed, you would be subject to a fine and/or suspension of your agency's licence. This would be a serious matter that could have significant conseguences for your business. It is therefore important that you take all necessary steps to ensure that the sale proceeds smoothly and without any problems. If there are any concerns that you have about the sale, it is important that you raise them with the relevant authorities. You should also make sure that you are fully compliant with all relevant regulations. Failure to do so could result in serious penzlues A