Licensee Thompson has been working with a buyer under no brokerage relationship for three months. The buyer now wants Thompson to negotiate on their behalf and provide market analysis for upcoming offers. The buyer offers to pay Thompson a fee for these services. What should Thompson do?
Correct Answer
A) Explain that a brokerage relationship must be established first
Correct: A - Explain that a brokerage relationship must be established first. Negotiation and market analysis exceed ministerial acts and require establishing either single agent or transaction broker relationship. Why not B: This option is incorrect because "Accept the fee and provide the requested services" does not match the rule tested by the question. The correct answer is "Explain that a brokerage relationship must be established first". Negotiation and market analysis exceed ministerial acts and require establishing either single agent or transaction broker relationship. Why not C: This option is incorrect because "Refer the buyer to another licensee for these services" does not match the rule tested by the question. The correct answer is "Explain that a brokerage relationship must be established first". Negotiation and market analysis exceed ministerial acts and require establishing either single agent or transaction broker relationship. Why not D: This option is incorrect because "Provide the services without accepting additional compensation" does not match the rule tested by the question. The correct answer is "Explain that a brokerage relationship must be established first". Negotiation and market analysis exceed ministerial acts and require establishing either single agent or transaction broker relationship.
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More Authorized Relationships Disclosures Questions
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