In a situation where a seller accepts a conditional offer but later receives a significantly better unconditional offer, what is the legal and ethical approach for the seller's agent?
Correct Answer
D) Present the new offer and explore options like escape clauses in the existing contract
The agent must present all offers to the seller and discuss legal options within the existing contract, such as any escape clauses that might allow the seller to accept a better offer. The agent cannot advise breaking a valid contract, but should explore all legitimate options while maintaining ethical obligations to both the current buyer and the seller's best interests.
Why This Is the Correct Answer
This answer is correct because the registrant must convey the new written offer to the seller as soon as possible (O. Reg. 567/05 s. 22.10(1)) and must promote the seller's best interests (Code of Ethics s. 8). Doing so lawfully means reviewing the existing agreement for options such as an escape clause or accepting the new offer as a back-up, rather than advising a breach.
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