Resolving Ethical Dilemmas
Avoid misrepresentation, fraud, and unethical practices.
WHAT YOU'LL LEARN
Resolving Ethical Dilemmas
Reporting Responsibilities
Scenario-Based Application
Key Takeaways
Resolving Ethical Dilemmas
Principles for Maintaining Trust:
Avoid misrepresentation, fraud, and unethical practices.
Ensure transparency and open communication with condominium corporations.
Application Example:
A condominium manager faces pressure from a board member to approve a vendor with ties to the board member.
The manager discloses the conflict of interest.
Provides objective vendor recommendations based on fair bidding processes.
Consequences of Acting Beyond Expertise
REA Rules: Outlines the penalties for incompetence or misconduct.
Example:
A manager takes on engineering responsibilities for a building repair despite lacking the required qualifications.
Result:
Improper repairs lead to structural damage.
RECA investigates, imposes fines, and suspends the licensee’s registration.
Mitigation Steps:
Clearly understand and stay within the scope of expertise.
Regularly consult with qualified professionals for specialized tasks.
Reporting Responsibilities
REA Rules: Requires timely reporting of misconduct to protect clients and the public.
Steps to Ensure Compliance:
Educate all licensees on their responsibility to report.
Establish internal processes for identifying and escalating misconduct.
Maintain confidentiality while reporting incidents to authorities.
Case Study:
A brokerage discovers an associate misusing client funds.
The broker collects evidence, including financial statements.
Reports the associate’s behavior to RECA and cooperates with the investigation.
Scenario-Based Application
Scenario 1: Ethical Dilemma
A condominium manager is offered a commission for recommending a specific contractor to the board.
Correct Actions:
Refuse the commission to avoid conflicts of interest.
Disclose the contractor's proposal to the board along with other competitive bids.
Outcome: Maintains transparency and trust with the condominium corporation.
Scenario 2: Reporting Misconduct
A licensee witnesses a colleague falsifying financial records.
Steps to Take:
Document the misconduct.
Report the incident to the broker and RECA with supporting evidence.
Outcome: Protects the condominium corporation and complies with REA Rules.
Key Takeaways
Ethical dilemmas should be addressed by integrating principles that sustain trust, ensuring transparency and accountability.
Acting beyond expertise can result in severe consequences, including penalties and loss of reputation.
Reporting unethical or unsafe practices is essential to protect clients and maintain compliance with the Real Estate Act and REA Rules.
