secret profit


Also found in: Legal.

secret profit

The practice of real estate agents making money on the sale of their client's real estate above the amount paid as a commission.This typically occurs when an agent recommends a sale to a friend, relative, or a corporation in which the agent owns an interest, and then the agent profits on a resale or development of the property.Secret profits violate the fiduciary responsibilities owed to the client,making the agent liable for punitive damages,payment of the profit to the client, and possible loss of the agent's real estate license.

References in periodicals archive ?
He said: "The charges relate to an alleged conspiracy to defraud the Metropolitan Police Service by dishonestly participating in a scheme to overcharge the MPS for flat rentals in Leeds with the intention of making a secret profit thereby and distributing monies so raised among themselves.
MANDY ALLWOOD, who miscarried octuplets in 1996 after a highly publicised pregnancy, today won her High Court action against her former publicist Max Clifford who she alleged made a secret profit out of her story.
Cartels create a secret profit which can make millions of pounds for those involved, Mr Latham said.
Fred DeLuca had every intention of making a secret profit from his business ventures with Pugliese and he plotted and schemed to take our client's interest in this multi-billion dollar business deal for his own personal benefit," continued Gary.
Such duties include acting in the best interests of the company,not making a secret profit, non-competitionetc.
The company secretary has a fiduciary duty to the company and is accountable to the company for any secret profit made because of his position.
DBS managing director Henry Beeby said: "The code is intended to stop people from making a secret profit at someone else's expense, which no-one in the industry can
Mr Dooley was cleared of encouraging one investor into the scheme without disclosing that he would make a secret profit.
The contract was so heavily weighted in favor of Enron, that without the secret profit sharing arrangements between Peoples Energy and Enron, Peoples Gas would have had no incentive to adopt it.
The hearing was told the deal did not go ahead but Mr Dutton commented: ``He did not receive a secret profit but he tried to do so.
Until public officials wake up, the bereaved will remain a secret profit center for the life insurance industry.
Beyond constituting a huge secret profit center for AT&T, the lawsuit further alleges that AT&T's manipulation of the Universal Connectivity Charge gives it an unfair advantage in the highly competitive long distance market.