Real Estate Agency Principals
Manage the overall activities of real estate agencies.
A Saturday as the principal
You are the licensed principal of a small real estate agency on a Saturday with three open homes, an agent in a dispute and a complaint on your desk. It is 8am. The open homes begin at ten, your phone has already rung three times and your office manager has left a note that says only 'urgent, call me'.
Choose what you would do. Then see what happens. There are often good reasons for each choice.
My seller wants me to tell buyers that there is another offer on the table to push the price up. There isn't one yet, but there probably will be. It would really help the sale. Is that okay?
Say it is fine as long as the other offer is likely, because everyone does it
A buyer asks for proof, and you cannot give any. The deal collapses and you are at risk of a complaint. A false claim is never made true by hoping.
Say he can only say it if true, and help him create honest interest
Hugo is disappointed but you help him plan an honest push. Two buyers hear the real situation and one makes a good offer. The law and a good reputation point the same way.
Tell him to avoid the topic and let the buyer assume what they like
He avoids saying anything false, but the buyer is left with a wrong impression that your agency allowed. Staying silent can still mislead.
My tenant is two weeks behind on rent and I want you to get them out this week. I have a mortgage to pay. I also heard they have a baby, but that is not my problem. Just do it.
Start the process immediately because the landlord is the client
You act quickly, but you skipped the step of speaking with the tenant, and you later learn that a hardship was behind the delay. Fast action is not always the fairest or even the most effective.
Explain the proper process to Alicia, contact the tenant first to understand the situation and agree a payment arrangement
The tenant had a delayed payment from work and catches up within a week. Alicia is happy to keep a good tenant. You follow the rules and protect both sides.
Tell Alicia you cannot do anything until the tenant is a month behind
Alicia is frustrated and feels you are not working for her. The rule you cited was wrong, and she later finds out. Know the rules well enough to explain them accurately.
The trust account reconciliation does not match by a small amount, and I cannot find the reason. I could adjust it so it balances, and nobody would know. But I thought I should tell you first.
Ask her to leave it as it is, and spend the weekend finding the cause with her
You find the error, a double entry, but only after a stressful weekend. Leaving it untouched was right, and a little earlier help might have found it sooner.
Agree to adjust it for now so the books balance, and look into it on Monday
The balance looks right, but you have changed trust account records without knowing why. Trust money belongs to clients, and records must always show what really happened.
Thank her, leave the records alone and trace the cause together
You find the cause on Monday, correct it with a clear note and keep the record honest. Linh learns that you will always back her on being open about problems.
How it went
By Sunday evening the open homes are done and the weekend's offers are in. A principal runs a business but also carries the legal and ethical weight of every deal. Could you be the person whose name is on the door when something goes wrong?
This is a simplified, fictional situation to help you explore. It is not professional instruction or a test of your ability.
Case study: The agent who bent the truth
A fictional case set in a fictional independent real estate agency in a growing coastal town, led by its licensed principal.
The situation
Samira Qasim was the principal of Tidewater Property. Her top salesperson, Brett, had just listed a house that backed onto a busy road. In the advertisement, the road was described as a quiet street. A buyer rang Samira to ask about the noise, and said Brett had told her the road was very quiet. Brett had sold more than anyone else that year, and the seller was delighted with him.
What they did
Samira visited the house at peak traffic time herself. She sat down with Brett and explained that misleading a buyer was both unfair and against the law, however good his results. She had the advertisement corrected, rang the buyer to apologise and put the facts on the table. She also introduced a rule that all new listings were read by a second person before they went live.
How it turned out
The buyer thanked her and later bought a different house through the agency. Brett was upset at first, and later said the second read had caught two other small errors. The seller was told what had changed and why.
What would you do?
- Why did Samira go to the house herself?
- How would you speak to a high-performing colleague who has made a mistake?
- What do you think a principal is responsible for that an agent is not?