A California listing agent represents a seller and receives two offers simultaneously. Offer 1 comes from an unrepresented buyer; Offer 2 comes from a buyer represented by a cooperating broker. Offer 1 would yield the listing agent a higher net commission because no cooperating broker commission would be shared. Which of the following best describes the listing agent's obligations?
Correct Answer
A) Present both offers promptly and disclose to the seller that the agent has a financial interest in which offer is accepted
California Civil Code Section 2079.16 and the DRE's fiduciary duty standards require a listing agent to present all offers promptly and to disclose any conflict of interest that could affect the agent's advice. Because the agent has a direct financial stake in which offer the seller accepts, that conflict must be disclosed so the seller can make a fully informed decision.
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A California agent acts outside the scope of their authority by making unauthorized promises to a buyer on behalf of the seller. Upon learning what the agent did, the seller chooses to honor the agreement as negotiated. What legal concept describes the seller's action?
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