A real estate agent receives two offers on a property at the same time. One offer is higher but comes from the agent's business partner. How should the agent handle this situation?
Correct Answer
D) Present both offers and disclose the relationship with the higher bidder in writing
The agent must disclose all material conflicts of interest to their principal. Both offers should be presented with full disclosure of the agent's relationship with one buyer, allowing the vendor to make an informed decision.
Why This Is the Correct Answer
The vendor must see every offer, and the agent must disclose any relationship that could colour its advice. Presenting both offers with written disclosure of the partnership lets the vendor choose knowing the conflict.
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