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 ?
MetLife and Prudential lead the way in making hundreds of millions of dollars in secret profits every year on money that belongs to relatives of those who die.
In this case there is pounds 25,000, which is exactly the sum of the secret profits that the agents apparently, certainly so far as the claimant was concerned, were splitting between themselves, and so far as Duggan is concerned that is the same position.
Ofgem spokesman Ian Marlee was asked about revelations that power giants could have made PS4billion in secret profits in three years.
According to the paper, the Reagan administration had in fact arranged the arms shipment for a number of reasons that had little to do with Iraq, including securing the release of American hostages in Lebanon, to open a private channel to the new leadership in Tehran and to generate secret profits that could be sent to Nicaraguan rebels.
Then there was a dispute involving a former partner of a law firm, a bust-up over a house boundary and alleged secret profits made by an employee without his boss knowing.
Eleanor's legal team had argued that it was her former business partner's duty not to negotiate for the benefit of Sorn Spring Water andmake secret profits for himself.
In his petition to the High Court, Mr Hawkes accused Mr Cuddy of making secret profits from player deals; committing a criminal offence by using his wife Simone as a front for himself when she was installed as director for Neath Rugby Ltd and forging his wife's signature on documents.
But the scam came unstuck when auditors realised accounting rules had been breached during the transfer of Lineker's secret profits.
Mr Galloway's case centred on a series of articles published in April, 2003 - following discovery of documents in Iraq by Telegraph reporter David Blair - which he said ``claimed that I had made very substantial secret profits from Saddam Hussein and his regime''.
Mr Galloway's case centred on a series of articles published in April 2003 following discovery of documents in Iraq by Telegraph reporter David Blair, which he said ``claimed that I had made very substantial secret profits from Saddam Hussein and his regime''.
Mr Galloway's case centred on a series of articles published in 2003 following discovery of documents which alleged Galloway made secret profits from Saddam Hussein and his regime.
He said: "That is what is called bribery and secret profits.