Tom is an Indiana Broker who represents the seller. He receives two offers simultaneously on the same property. Offer A is for $310,000 with no contingencies. Offer B is for $325,000 with a home sale contingency. Tom's seller client asks him to present only Offer A because the seller does not like contingencies. What must Tom do under Indiana law?
Correct Answer
D) Present both offers to the seller, because Indiana Brokers have a duty to present all offers promptly
Under Indiana license law (IC 25-34.1) and IREC regulations, a Broker representing a seller has a fiduciary duty to present all written offers to the seller promptly, regardless of the broker's or seller's personal preferences about offer terms. The seller may ultimately choose to reject Offer B, but the broker must present both offers and allow the seller to make an informed decision.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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.
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