An agent representing a seller receives two offers simultaneously. One offer is higher but comes with conditions that may be problematic, while the other is lower but unconditional. How should the agent present these offers?
Correct Answer
A) Present both offers with objective analysis of each
Agents must present all offers to their client and provide objective analysis of the benefits and risks of each. The client needs complete information to make an informed decision about which offer best serves their interests.
Why This Is the Correct Answer
Option A is correct because it reflects the agent's fiduciary duty under provincial real estate legislation to present all offers to their client with objective analysis. TRESA and similar provincial acts require agents to provide complete disclosure of all material facts. The agent must present both offers, explaining the benefits and risks of each, including the higher price versus the potential complications of conditions, and the certainty of the unconditional offer versus its lower price. This allows the seller to make an informed decision based on their priorities and risk tolerance.
Why the Other Options Are Wrong
Deep Analysis of This Agency & Professional Ethics Question
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An agent representing a seller receives two competing offers simultaneously. One offer is higher but comes from a buyer represented by the same brokerage. How should the agent handle this situation?
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An agent represents a buyer interested in a property listed by another agent at the same brokerage. Both the buyer and the seller signed brokerage representation agreements, not designated representation agreements. What situation has been created under Ontario's TRESA rules?