Assignment task: Blakey is a real estate agent. He is pre-selling a block of home units for Metro Development. Blakey becomes aware that a competing development has run into problems getting approval from the planning authorities and is therefore not likely to proceed. This will mean that Metro Development housing units will be worth much more than originally planned. Seeing a commercial opportunity, Blakey does two things.
- He helps a friend to buy several of the units to re-sell later at a big profit which they will split.
- In return for a cash payment, he tells several buyers of the likely increase in the value of the units.
After all the units in the block are sold, it becomes clear to Metro developments what has happened. Advise them.