Under Ohio law, Broker Holmes operates a brokerage and is also a licensed appraiser. Holmes asks salesperson Agent Klein to pressure a friendly appraiser to inflate a property's appraisal value to ensure a transaction closes. Under ORC Chapter 4735, what should Agent Klein do?
Correct Answer
B) Refuse the instruction because pressuring an appraiser to inflate values is illegal, and report the conduct to the Division of Real Estate if necessary
Under ORC §4735.18 and federal law (FIRREA), pressuring an appraiser to inflate values is illegal. Agent Klein should refuse the instruction and may report the conduct to the Ohio Division of Real Estate. The duty of obedience does not extend to illegal directives.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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