A listing broker represents the seller under an exclusive listing agreement. An unrepresented buyer, after receiving the agency disclosure form and acknowledging the broker represents the seller, asks the broker: 'What price do you think I should offer to get this deal done?' How should the broker respond?
Correct Answer
B) Recommend the buyer consult an attorney or obtain independent buyer representation before making that decision
The broker owes fiduciary duties to the seller, including the duty of loyalty and confidentiality. Advising an unrepresented buyer on what price to offer is a negotiation strategy that directly serves the buyer's interests at the potential expense of the seller's. The broker cannot fulfill that role without breaching fiduciary duty. The appropriate response is to decline and direct the buyer to seek independent legal or professional advice, consistent with treating the buyer as a customer rather than a client.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Agency Relationships Disclosures Question
Background Knowledge for Agency Relationships Disclosures
Real World Application in Agency Relationships Disclosures
Common Mistakes to Avoid on Agency Relationships Disclosures Questions
Related Topics & Key Terms
Key Terms:
More Agency Relationships Disclosures Questions
What is the primary risk that New York dual agency disclosure is designed to address?
Under New York law, what is dual agency?
What document must be provided to both parties before a New York broker can act as a dual agent?
Agent Michelle meets first-time homebuyer Tony at her brokerage's office in Albany. Tony asks about the difference between condos and co-ops in the area. What must Michelle do before explaining these property types?
Which of the following most accurately describes the content required in the agency disclosure form under NY Real Property Law §443?
- → Under New York's agency disclosure law, which of the following constitutes 'first substantive contact' that would trigger the disclosure requirement?
- → Under NY Real Property Law §443, at what point must a real estate agent provide the agency disclosure form to a prospective buyer during an initial property visit?
- → In a New York disclosed dual agency transaction, the seller asks the dual agent: 'What is the lowest price I should accept for this property?' How must the dual agent respond?
- → In New York, what happens if a broker acts as a dual agent without obtaining proper written consent from both parties?
- → In New York real estate law, what is dual agency?
- → In New York, what form of consent is required for dual agency?
- → When acting as a dual agent in New York, which type of information can an agent share with both parties?
- → Under New York law, what does 'informed consent' mean in the context of dual agency?
- → A New York real estate broker wants to represent both the buyer and seller in a transaction. What is required under New York law before the broker can act as a dual agent?
- → In New York, a dual agent may do all of the following EXCEPT:
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
A salesperson meets a prospective buyer for the first time at an open house and begins discussing the property's features and the buyer's needs. Under New York law, what obligation is triggered at this point?
Next Question
Agent Paul meets potential buyers at a weekend open house. They ask general questions about the neighborhood and school districts. Later that day, they call Paul and ask him to prepare a comparative market analysis for a different property they're considering purchasing. When must Paul provide the agency disclosure form?