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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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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