Did Jorge engage in self-dealing by selling his unit before the foreclosed listing hit the market?

Prepare for the Maryland Real Estate License Test with flashcards and multiple choice questions, each offering helpful hints and explanations. Get ready to ace your exam!

In this scenario, determining whether Jorge engaged in self-dealing revolves around the ethical implications of his actions in relation to his position as a real estate professional. Self-dealing typically involves a situation where an agent or broker exploits their position to gain an unfair advantage.

If Jorge had insider knowledge about the pending foreclosure of listings that may negatively impact the market, and he acted on that information by selling his unit quickly, this would suggest he utilized his privileged position to benefit himself. Particularly in a real estate context, selling his property just before a market downturn—especially if he was aware of the upcoming foreclosure—could indicate he was prioritizing his interests over those of his clients or the market at large, which is a hallmark of self-dealing.

It's essential to consider that while being savvy or capitalizing on market conditions is part of real estate strategy, doing so with information that other parties do not have access to can cross into unethical territory, particularly if it undermines the interests of others.

The other choices suggest justifications for his actions, such as being savvy in timing or claiming the unit’s condition warranted a higher price. However, these options fail to address the potential misuse of specialized knowledge that could classify his behavior as self-dealing. By selling before

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