A broker receives a full price offer on a house they are listing. Before they present the offer to the seller, another broker brings in an all cash offer for $5,000 less. The listing broker is to:
Correct Answer
A) present both offers at the same time.
present both offers at the same time — because California's fiduciary duty to the seller and the California Association of Realtors' ethical standards require that all unaccepted offers be presented to the seller as promptly as possible and simultaneously when feasible. By presenting both offers together, the seller can weigh a full-price offer against an all-cash offer at $5,000 less and make a fully informed decision, which is the essence of the broker's duty of loyalty. California Business and Professions Code § 10176 also supports this by prohibiting conduct that constitutes fraud or misrepresentation, which would include strategically withholding an offer.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Laws Of Agency Fiduciary Duties Question
Background Knowledge for Laws Of Agency Fiduciary Duties
Real World Application in Laws Of Agency Fiduciary Duties
Common Mistakes to Avoid on Laws Of Agency Fiduciary Duties Questions
Related Topics & Key Terms
Related Topics:
Key Terms:
More Laws Of Agency Fiduciary Duties Questions
A broker repeats information they received from their seller to a potential buyer. On finding the information is false, the broker is to:
A property sold for $450,000. The commission rate was 6%. If the listing broker received 60% of the total commission, how much did the listing broker receive?
If a broker wanted to avoid the possible loss of personal assets from a lawsuit against the brokerage firm as well as double taxation, the BEST form of business structure would be:
Two brokers secretly agree to charge identical commissions and divide service territories. These practices violate:
The seller states they will accept the buyer’s offer if the broker lowers their 6% commission by 25%. If the broker accepts, they will receive:
- → What are the three steps of the agency disclosure in proper chronological order?
- → A disclosure which warns a buyer they may be liable for additional tax obligations after the close of escrow is the:
- → Listing broker learns prospective buyer owes delinquent child support. Which duty requires disclosure to seller?
- → A broker who fails to promptly disclose their dual agency status is subject to:
- → When a dual agency is established in a targeted sales transaction, the broker and their agents may not pass on any information from one party to the other relating to:
- → A broker provides services to both a buyer and a seller in a transaction without disclosing their dual agency status. This is an example of:
- → A broker’s fiduciary obligation to protect a seller’s confidential information continues:
- → When taking a listing, it is appropriate for the broker to:
- → When showing a listed property to potential buyers, the listing broker is required to disclose:
- → On which type of listing contract is a broker required to state the amount of their commission is negotiable and not fixed by law?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
A broker provides services to both a buyer and a seller in a transaction without disclosing their dual agency status. This is an example of:
Next Question
A broker repeats information they received from their seller to a potential buyer. On finding the information is false, the broker is to: