A California real estate broker receives two offers simultaneously on a property listed in Stockton for $550,000. Offer A is for $540,000 and Offer B is for $555,000. The seller's agent presents only Offer B to the seller, who accepts it. If the buyer from Offer A later discovers this, what violation has the seller's agent committed under California law?
Correct Answer
D) A violation of the agent's fiduciary duty because California law requires all offers to be presented to the seller
Under California Business and Professions Code §10176(e) and DRE regulations, a listing agent must present all offers to the seller unless the seller has given written instructions to the contrary. Failing to present all offers is a breach of the agent's fiduciary duty and can result in disciplinary action by the DRE.
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