Broker Johnson represents seller Martinez in the sale of a commercial property. During negotiations, the buyer's agent asks Johnson if Martinez would accept $50,000 less than the listed price. Johnson knows Martinez is facing foreclosure and desperately needs to sell quickly. What should Johnson do?
Correct Answer
C) Suggest the buyer make an offer and let Martinez respond
As a single agent, Johnson must maintain client confidentiality and cannot disclose confidential information about Martinez's financial situation. Suggesting the buyer make an offer allows Martinez to make his own decision. Option A violates confidentiality duties. Option B is unnecessarily uncooperative. Option D hints at confidential information.
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Related Topics & Key Terms
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Related Concepts
A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.
An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.
Asbestos disclosure involves informing buyers about the presence of asbestos-containing materials (ACMs) in a property. Asbestos was commonly used in construction materials before 1980 and poses health risks when fibers become airborne.
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