Article One of the Code of Ethics is clear., "REALTORS remain obligated to treat all parties honestly."

Misrepresenting your identity was the first violation. Based on the story here, not disclosing payment details before the work was started or completed could be violation. Finally, adding those expenses to the closing statement without proper authorization from the seller could also be unethical. Without the seller's knowledge and permission, this agent has crossed several lines and your friend should call this agent's Broker to stop this type of behavior from re-reoccurring.

Such action is fraudulent REGARDLESS of the title of the perpetrator.

I don't believe the story told and do believe some very important details have been left out. 

One such detail is the TOS of Home Adviser and the 'compenstation/collection' responsibilities of the user. This sound like a disgruntled user of a referral service who did not read the rules and chose to believe the sugar plum lies. 

A contractor should know the laws of the land and NEVER do work on ANY house without a conversation with and permission from the OWNER in writing.

The contractor could place a mechanics lien on the house and that will teach those fraudulent folks a REAL lesson taught to them at the closing table.  No contractor will work on a contingent fee compensation structure. Agents are not competent enough to assure the outcome.

Unbelievable. 

Good I am not involved in any repairs. 

that's a terrible story... your friend should always take a deposit...always... trusting to be paid is not a good habit.... your friend needs to know who the attorney is and be at closing to get a check cut from the proceeds.... 

put a mechanics lien on the property....he'll get paid!!!

No COE violations as far as I know. But, this guy should have payment upon completion who cares who he does the work for. Agent/homeowner/whoever could have told him the money is not available now too.

I really don't even know what home advisor is.

Seems more than sneaky.

Not how I would do it, but then we have a part of our business that does the contracting, and all is disclosed to all involved both the owners and the sub contractors.

Doesn't sound like treating people honestly.

Bob,

I think you have many answers, nothing to add.

Fraud, extortion. 

Maybe a visit to the local District Attorney's office is in order.

And be sure to file a Mechanic's Lien, per the answer from Annette Lawrence , Palm Harbor, FL 727-420-4041 

Anything that is not done above board is an ethical violation in my mind. 

I see problems from both sides.  Realtors should not be pretending to be the owners and not pay someone for a job done.  The contractors, on the other hand, should always have an agreement or contract and warranty in place that is signed by both before beginning the work.

Interesting subject. 

I always try do not get in the middle. 

Don't want to fix? 

Fine. 

Sell as is and get less money...

Yes. Violation. Lying. 

Unless payment at COE is agreed upon ahead of time, that's a contract violation.

Unethical and fraudulent. I'd call their Brokers or the Board. The payment should be established before the work was started though, that's on your friend if not.

Payment for services sould be discussed upfront! If the contrsctor will wait who guarantees payment if the transaction does not close?

We are to act with honesty and truthfulness in all situations.  Yes, I agree that the event you describe appears to be contrary to that standard.

If the bill is paid ...fine. If not, off with their heads!

Your friend might not get anything at closing seeing as the owner did not authorise the work.

Yes, they are in violation, Bob. We are always to identify ourselves as Realtors® - regardless of 'who' we're representing for outside work.

To my view, a professional who seeks to answer a question regarding a COE violation, should state and understand the relevant rule.   To simply describe the conduct as dishonest is obvious and fails to identify the violation.

It might be a good idea to self-check the COE:

1)  Does this conduct violate my duty of loyalty?

2)  Does this conduct violate my duty of competence?

3) Does this conduct violate my duty of accounting?

4) Does the duty of honesty to 3rd parties apply to vendors?  etc. etc.

The consequences depend on whether the conduct implicates statutory law, contract law, COE rules, commission regulations, municipal code....  

Also, consider the impact of the law of agency:

1)  Does the Realtor have express, apparent or ostensible authority to bind the homeowner?

2)  If so, and if the Realtor wrongly binds the homeowner, does it then violate the COE?

Or is Bob's real question, how should this vendor go about getting paid?...which is no longer about a Realtor's COE.   If so, I wouldn't be so cavalier about recommending a mechanic's lien, at least not without consulting counsel and understanding the potential headaches for the vendor who encumbers title for payment of what may be a relatively small fee.

Not how I want to be known and not how I operate. 

I will disclose I am helping my client out meeting the contractor there. 

It doesn't really matter what I think about others doing this, becuase there is little to no enforcement of the rules, so who is there to report to that will take it seriously.

Robert Vegas Bob Swetz it is an ethical violation.

That doesn't seem right. It might be worth asking your real estate commission to investigate.

Seems like an ethical violation to me. And the homeowner could possibly refuse to pay since he/she did not authorize the actual repairs. Vendor could file a lien, too.

I don't use a website to find, hire or communicate with vendors.  It's not that it's not a service I provide, but it's all up front who I am, how they will be paid and I don't "pose" as anyone.

Dishonest? Yes.

Deceitful? Yes.

SlimeBall Move on the part of the those prostituting the system? Yes. 

What did the contract say?  Who signed the contract with the contractor(s)? What payment arrangements were made? 

We all need to be smarter in how we engage with people and in business. That said, those on the take will always be on the take and likely find a way to deceive. 

Interesting question and many great answers.  WOW.......

I like the answer by Clay R. Seay. 

Yes.

Sure sounds that way.

This does sound like a violation!

 would never do that.  why risk it

If the agent claimed to be the homeowner and was not, I agree that would be a violation. However, if your friend just assumed the agent was the homeowner because the agent filled out the request for service online, I wouldn't expect that to be a violation.

Did your friend have a written proposal and payment agreement? These things should be discussed in advance followed by a mechanics lien if they aren't paid as agreed.

if they are pretending to buyers how does he know they are realtors?

As ye sew , so shall ye reap !

Sounds like fraud to me.

Posing as a homeowner on a property that is owned by another is a form of deceit, clear and simple. Not a place I choose to go for sure Bob, for any reason!

Sounds like shady dealings. The contractor should place a mechanic's lien on the property

Without honesty our attempts at professionalim are lost. This is one of many examples VB.

As a contractor, that is what a contract is for before completing any work. That payment is due when work is completed and if a deposit is required. It is unethical and why a realtor would do that is beyond me. 

I find this totally crazy and not sometthing that enhances our professional reputation. So many ways this can go wrong.

Home inspection is very subjective. There is no such thing as perfect home. Inspectors just point out things and let buyer/seller to decide. As for NAR code of ethetics I am sure it needs to meet all 19 articles.