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Authorized Relationships DisclosuresNo_brokerage_relationshipMEDIUM

Licensee Martinez is working with a seller who refuses to sign any brokerage agreements but wants help marketing their property. Martinez agrees to work under no brokerage relationship. The seller asks Martinez for advice on pricing strategy and negotiation tactics. How should Martinez respond?

Correct Answer

C) Explain that providing such advice would exceed ministerial acts

Correct: Providing pricing strategy and negotiation advice exceeds ministerial acts and would create an agency relationship. Why not A: This would violate the no brokerage relationship limitations. Why not B: While referrals are appropriate, the licensee must first explain why they cannot provide the advice. Why not D: General market information is permissible, but specific pricing strategy is not.

Answer Options
A
Provide the advice since the seller requested it
B
Refer the seller to a qualified appraiser or attorney
C
Explain that providing such advice would exceed ministerial acts
D
Provide general market information only

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Related Topics & Key Terms

Key Terms:

no_brokerage_relationshipadvice_limitationsseller_interaction
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