A transaction broker receives two offers on the same property within an hour. The first offer is for $280,000 with a 30-day closing. The second offer is for $275,000 with a 15-day closing. The seller is out of town and unreachable. What should the broker do?
Correct Answer
A) Hold both offers until the seller can be reached to present them simultaneously
Correct: A - Hold both offers until the seller can be reached to present them simultaneously. Transaction brokers must present all offers and allow the seller to make informed decisions. When multiple offers are received close together and the seller is temporarily unavailable, the best practice is to present them together so the seller can compare and decide. Why not B: This option is incorrect because "Present only the faster closing offer to expedite the transaction" does not match the rule tested by the question. The correct answer is "Hold both offers until the seller can be reached to present them simultaneously". Transaction brokers must present all offers and allow the seller to make informed decisions. When multiple offers are received close together and the seller is temporarily unavailable, the best practice is to present them together so the seller can compare and decide. Why not C: This option is incorrect because "Present only the higher offer since it's better for the seller" does not match the rule tested by the question. The correct answer is "Hold both offers until the seller can be reached to present them simultaneously". Transaction brokers must present all offers and allow the seller to make informed decisions. When multiple offers are received close together and the seller is temporarily unavailable, the best practice is to present them together so the seller can compare and decide. Why not D: This option is incorrect because "Present the first offer immediately and the second when convenient" does not match the rule tested by the question. The correct answer is "Hold both offers until the seller can be reached to present them simultaneously". Transaction brokers must present all offers and allow the seller to make informed decisions. When multiple offers are received close together and the seller is temporarily unavailable, the best practice is to present them together so the seller can compare and decide.
Why This Is the Correct Answer
Correct: A - Hold both offers until the seller can be reached to present them simultaneously. Transaction brokers must present all offers and allow the seller to make informed decisions. When multiple offers are received close together and the seller is temporarily unavailable, the best practice is to present them together so the seller can compare and decide. Why not B: This option is incorrect because "Present only the faster closing offer to expedite the transaction" does not match the rule tested by the question. The correct answer is "Hold both offers until the seller can be reached to present them simultaneously". Transaction brokers must present all offers and allow the seller to make informed decisions. When multiple offers are received close together and the seller is temporarily unavailable, the best practice is to present them together so the seller can compare and decide. Why not C: This option is incorrect because "Present only the higher offer since it's better for the seller" does not match the rule tested by the question. The correct answer is "Hold both offers until the seller can be reached to present them simultaneously". Transaction brokers must present all offers and allow the seller to make informed decisions. When multiple offers are received close together and the seller is temporarily unavailable, the best practice is to present them together so the seller can compare and decide. Why not D: This option is incorrect because "Present the first offer immediately and the second when convenient" does not match the rule tested by the question. The correct answer is "Hold both offers until the seller can be reached to present them simultaneously". Transaction brokers must present all offers and allow the seller to make informed decisions. When multiple offers are received close together and the seller is temporarily unavailable, the best practice is to present them together so the seller can compare and decide.
Why the Other Options Are Wrong
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."
A material defect is a condition that significantly affects the value, desirability, or safety of a property and that would likely influence a reasonable buyer's decision to purchase or the price they would pay.
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
More Authorized Relationships Disclosures Questions
In Florida, the default brokerage relationship when no disclosure is made is:
Scenario Harbor Ledger raises this Florida point. In a Miami transaction, a buyer wants the Florida rule on buyer-and-seller same-transaction scenarios. Which statement is correct?
Broker Smith's firm represents the seller under a single agent relationship. During the transaction, the buyer asks Broker Smith to also represent them. If Broker Smith agrees, what must happen?
All of the following situations require immediate brokerage relationship disclosure EXCEPT:
Single agent Rodriguez represents buyer Adams in Tallahassee. Adams asks Rodriguez to submit an offer $20,000 below asking price on a property Rodriguez knows has multiple offers at full price. What should Rodriguez do?
- → A Florida real estate licensee working at an open house provides a visitor with a property information sheet, directions to local schools, and general market statistics. No written agreements are signed and no compensation is discussed. What type of relationship exists?
- → Florida requires brokerage relationship disclosure be provided:
- → Agent Robert is at an open house representing the seller. Visitor Janet starts asking detailed questions about the property's HOA fees, recent repairs, and neighborhood schools. She then asks if Robert can show her similar properties next week. When must Robert provide the appropriate disclosure?
- → Broker Martinez has designated Sales Associate Chen to represent the buyer and Sales Associate Rodriguez to represent the seller. Chen discovers that Rodriguez has been sharing confidential buyer information with the seller. What should Chen do?
- → During a transaction, the seller's mortgage company calls the transaction broker asking for details about the buyer's offer and financing. The seller has given verbal permission for the broker to share this information. What should the broker do?
- → In a Tampa transaction, a buyer wants the Florida rule on single-agent loyalty. Which statement is correct?
- → All of the following are requirements for dual agency in Florida EXCEPT:
- → Broker Sarah enters into a single agent relationship with seller Tom to list his waterfront property in Miami. During the listing period, Sarah's friend mentions she might be interested in buying Tom's property. What must Sarah do before showing the property to her friend?
- → A licensee is working as a transaction broker for both the buyer and seller in a residential sale. The seller mentions they are willing to accept $10,000 less than the listed price, but asks the licensee not to tell the buyer. What should the transaction broker do?
- → ABC Realty represents both the buyer and seller in the same transaction. The broker has appointed Sales Associate Johnson to represent the buyer and Sales Associate Martinez to represent the seller. What type of agency relationship exists?
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