Saul Goodman, a character in the TV series Breaking Bad, survives using the art of the hustle. He is famous for promising his clients that he is playing by the rules or that he can get them out of any jam, often making false promises to obtain their business. The Commission receives complaints based on similar behavior, which can result in disciplinary action if substantiated by sufficient evidence.
Real estate brokers are prohibited under NCGS § 93A-6(a)(2) from making any false promises of a character likely to influence, persuade, or induce another to act or fail to act.
A broker who makes statements such as the following, knowing at the time they are made that they are false, in order to induce the consumer to do something, like sign a contract, or agree to a repair, may be found in violation of license law and Commission rules:
- Promising, “My client will sign that,” when you know your client will not, or
- Indicating that, “This property will sell for X dollars or within X number of days,” to persuade a seller to list with you when you know that comparable sales information doesn’t support the price or marketability of the property, or
- Falsely stating that, “The seller will make that repair, give a refund, reduce a price, agree to X terms,” when you know the seller will not agree, or
- Telling a buyer that, “The seller has to make that repair,” when you know there is no actual requirement on the seller to do so, or
- Representing that, “There is nothing wrong with that roof, crawlspace, electrical system, etc.,” when prior inspections have indicated otherwise, or
- Stating, “I (or the seller) will take care of that for you after closing,” without having a real intention to take care of it.
What can you do to make sure you do not risk discipline for making a false promise?
- Never promise something when you know you can’t deliver
- Do not speak for your client without their consent, or promise something for your client that the client cannot deliver.
- Do not exaggerate the features of the property.
- Make sure your client is on board before you indicate their agreement to anything.
- Refer your client to an attorney, contractor, inspector, appraiser, or other qualified professional when needed.
- And, finally, do not make any promises that you personally cannot keep.