“Who’s your client?”

This case study highlights the importance of understanding who your client is. While this may seem obvious, when third parties (generally family members) are involved, sometimes the situation can get muddled, whether real or imagined. It is important to remember who signed the agency agreement and follow it.

 

The Situation

Robert Greyson was issued a real estate broker’s license in 2011 and was the sole broker for Greyson and Sons Realty LLC, a brokerage firm.

On November 10th, 2024, Greyson signed a listing agreement for the sale of a property with Rebecca Dawson.

Truman Dawson is Rebecca Dawson’s father and lived in the property for sale. However, only Rebecca was the legal owner of the property.

 

The Investigation

Rebecca signed a listing agreement with Greyson for the sale of their 10-acre beach house. Truman Dawson had a severe illness and needed to be in hospice. The sale of the house was going to fund the care in hospice.

Greyson met with Truman and Rebecca while signing the listing agreement. He explained all the nuances and intricacies required to sell a property. He gave them a market value assessment and they all agreed a list price of $500,000 would be a good price and it may even cause a bidding war. In the agreement it said that the house would be listed on the local MLS within a few days.

Greyson alleged that Truman spoke with him, and Truman convinced him that he should do a pocket listing instead. Even though Truman had deeded the house to Rececca decades ago, Truman had built the house himself. The house itself was of a unique design and Truman does take pride in the construction.

Greyson did not enter the house into the MLS per the agreement. Greyson then allegedly attempted to find a suitable buyer himself and acted as if it indeed was a pocket listing. Rebecca kept asking for updates and Greyson kept insisting that he was looking for a buyer. A week after signing the agreement, Rebecca noticed that the house was not in the MLS and questioned Greyson on it.

Greyson kept insisting that there were issues with entering the house into the MLS, then upon more questioning later by Rebecca, mentioned that he was not putting it on the market per Truman’s instructions. Rebecca asked Truman if this was indeed true, and Truman denied ever having this conversation with Greyson. 46 days into the listing agreement, Truman then confronted Greyson who in turn alleged the conversation again.

Both Rebecca and Truman insisted that Greyson release them from the agreement. Greyson refused and involved his attorney. Unrelenting, Rebecca and Truman contacted their own attorney and finally the situation was resolved by Greyson providing a release. Rebecca then signed another listing agreement with another company which posted the house on the MLS. The house then sold for over asking price a few days later.

 

The Result

The Board found Greyson had violated 54.1-2131.A.1 of the Code of Virginia and fined him $1,850. In addition, Greyson must complete 6 hours of Ethics and Standards classes.

 

Published February 2025