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Secret profit refers to circumstances whereby a real estate agent makes money on a sale on top of the commissions paid by the client.
While can refer to various types of activities, secret profit usually refer to situations where a listed property is sold to someone related to the agent like a friend or relative.
When in fact the agent has an indirect interest in the new ownership.
The property is then flipped to other buyers whose offers to buy it never reached the seller, at a price above the original purchase price.
The profits is then split among them.
Such actions are illegal as they are actions of bad faith and violate a broker’s fiduciary responsibilities.
When discovered sellers are known to take these types of unscrupulous agents to court to sue for damages.