Proper Handling of Money
Improper handling of money is among the most common reasons an agent gets into trouble. If your office handles earnest money deposits through their trust account, the proper accounting of those funds is critical. It is also important to tell the truth regarding whether or not there is an earnest money deposit. Perhaps your client promised it to you but did not have his checkbook with him. Even if you are expecting it momentarily, you must disclose that you do not have the deposit in your account.
Conspiracy is a word that sounds terribly ominous. Many agents have unwittingly entered into a conspiracy without even realizing it. Imagine your buyer wants to purchase a house for $250,000 and the seller is willing to sell it to them for that amount. Say the buyer does not have any money for a down payment so she decides to offer $300,000, to get the loan for $250,000 but not actually pay $300,000. If you agree to this type of contract you are entering into a conspiracy to defraud the lender. Chances are if an action feels wrong or it sounds wrong, it is wrong.