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 ?
* Custom in the Equine Industry Is No Defense--A defense frequently raised by those taking a secret profit or engaging in a dual agency commission is that it is the custom of the equine industry.
The issue was settled out of court, but the judge made critical comments about details of the proposed sale - which he said incorporated "bribery and secret profits" - that were not made obvious to the buyer, and subsequent publicity in the Daily Telegraph prompted action.
But a High Court judge rejected her claim that Mr Clifford had made a "secret profit" out of her story.
But he said Mr Clifford made a 'secret profit' at her expense by arranging a contract for himself with the News of the World, who had agreed an exclusive deal with the couple.
Midland octuplets mother Mandy Allwood yesterday accused her former publicist Max Clifford of making a 'secret profit' out of her story.
Judge Dean I do not care whether you are making it or not, it seems to me that he was taking a secret profit if you did not know about it.
Lawyers for the Harrods owner argued that Mr Hollingsworth, from Leamington Spa, Warks., was entitled to no notice because his agency had unlawfully made an undisclosed "secret profit" by taking commission for securing work for one of its clients, Lowri Turner, as a presenter on Liberty Radio.
information, taking secret profits and other forms of self-dealing.
Ofgem spokesman Ian Marlee was asked about revelations that power giants could have made PS4billion in secret profits in three years.
Shadow Energy Secretary Caroline Flint claimed customers paid an average of PS150 over the odds, helping companies to make PS3.9billion in secret profits.
The money was used to fund "secret profits that have been paid to himself [Khan]", according to court papers filed by Eriksson.
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.