The sellers have moved, the house is vacant, and you and your buyers are there for the walk through inspection. As you enter the den you observe that the sellers have removed some wall mounted light fixtures they should have left and you see a bookcase door off its hinges. The buyer while inspecting the unhinged door, finds an envelope taped under one of the shelves. It contains not markings, not notes just 15 crisp $100 bills. There is no indication as to whose money it is.

The buyers are ecstatic at their find and clearly intend to keep the money. They say this will make up for some of the grief the sellers have caused during the transaction including new wall lighting fixtures. What would you do?

About Ethical Dilemmas

One of the interesting things we've noticed at past Polley Associates' Mandatory Continuing Education sessions on Ethics, is how fair, honest and ethical we can be in the classroom. The challenge is.... can we carry that to the marketplace where there are the pressures of conflict, competition and compensation? It's not that easy.

Mark Twain said it long ago... The weakest of all things is a virtue that has not been tested in the fire.

• It's clearly the sellers' money. I would insist the sellers be contacted and the money returned to them" Ann Ventura, New Castle
• "The money belongs to the seller. If returned, I'd expect the sellers to address the missing light fixtures and the broken door." Dee John, Uniontown
• "My integrity is worth more than $1,500. Inform the seller. They would likely question the loss eventually." Frank Buda, Ellwood City
• "Nothing good comes from ill gotten money. I would encourage my buyers to make every effort to find the owners of the money - even if it's the sellers." Carole Rabold, Fredonia
• "The buyers can't keep the money but I would surely suggest that my buyers refuse to close until the property is made right. We know the seller can afford it." Daniel Obriot, Spring Church
• "Nightmare or not... the money has to be returned. Until closing, the house and its contents belong to the seller." Lauren Turkowski, Irwin
• "I would try to convince the buyers to return the money. If they refused, I would feel obligated to tell the sellers. Honesty is still the best policy." Sonja Noullet, Greensburg
• "The money isn't ours. It's my moral obligation to notify the authorities and the sellers to find a proper solution." Ed Karlovic, Sharon
• "I would disclose the finding of the money, but would suggest that I be entrusted with the money in effort to negotiate a settlement with the sellers." Jim Estep, Ebensburg
• "This is an ethics and ownership issue. I'd take the money to closing and escrow it until the fixtures are replaced and the hinge fixed." Jean Case, Ligonier

Do you agree with the responses given by the people whose remarks appear on this page? Even if you do, be aware that it is easier to be ethical in theory than in real life. You say that you would tell the seller that the $1,500 was found and insist that the buyer return the money. But would you considering the following?

What if....

Your buyer client said they would deny ever finding the money and would keep the money even if you did tell the seller. What would you do then?

You think your buyer client was forced to make unwarranted concessions to this seller. You feel bad that you were helpless to protect them. You know the buyers deserve a monetary concession from the sellers. $1,500 would be the right amount. Would you still return the money?

You haven't had a closing in three months; this buyer client is paying a smaller than normal fee; you have to pay a referral fee to the out-of-state firm that referred the buyer client to you; and the buyer client says, "Look I'll split the $1,500 with you. In two hours this house and everything left in it will be mine anyway. What do you say?"

The "Finders Keepers, Losers Weepers" problem

When others are involved, we would all struggle with what action to take.

Money Bag Falls Off Truck

And it happens. Recently in South Florida, an armored car lost $100,000 when a money bag fell off on to a road way.

Many people scrambled to the scene. Some scooped up all they could get and proudly announced, even to new reporters, that they were entitled to and were keeping the money. Others gathered up the cash and turned it in to the proper owner. Many who turned in the money were ridiculed as being "saps" and "stupid" to give up such an opportunity.

Where Did I Hide My Jewelry?

Even more recently, here in western Pennsylvania, someone received cans of soup from a food bank only to find one of the cans was fake.

The fake soup can was identical to the real thing except it was designed to serve as a hiding place for valuables. Whoever donated the can to the food bank forgot that they had stashed over $7,000 worth of jewelry in the can. The recipient of the can immediately contacted the food bank who found the can's former owner so the valuables could be returned.

The appreciative owner rewarded the honest recipient with a check for $1,000.