Don’t Make Promises You Cannot Keep!

Video Link: https://youtu.be/uk2l3cJ1mo8

Recently, there have been several disciplinary actions related to brokers making promises to clients or consumers and then not fulfilling the promises.

General Statute 93A-6(a)(2) states that the Commission has the power to discipline a broker for:

Making any false promises of a character likely to influence, persuade, or induce. To be a false promise, the broker has to know at the time it is made that they aren’t going to fulfill it or aren’t able to fulfill it.

Here are some examples of making false promises:

• A broker makes certain promises to entice consumers and clients to invest in certain investment opportunities, e.g., that the broker will ensure a particular rate of return when the broker knows or should know they cannot guarantee that.
• A broker makes promises to potential sellers that they know of a buyer who is ready to buy the sellers’ property when they actually don’t, to entice the sellers into signing a listing agreement.
• A broker tells their buyer client that the broker will pay for professional cleaning of the property on the day of closing in order to get the buyer to close, without any plan to follow through.
• A broker promises a buyer and seller that the broker will get signatures from neighbors for an easement agreement that would allow access to the subject property from neighboring properties, without any real intention of getting the signatures.
• A broker/developer promises buyers that the streets in the new subdivision will be paved, knowing that the builder doesn’t have the financial ability to pave them.

Brokers should be cautious when making promises to consumers and clients.  Never promise something you don’t intend to deliver.  And if you do make a promise, be sure to follow through on your promise in a timely manner.