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.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
More Agency Relationships Disclosures Questions
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Under New York's Property Condition Disclosure Act, how is the $500 credit amount determined when a seller elects not to provide the Property Condition Disclosure Statement?
Acting as a dual agent in New York, an agent has presented a below-asking-price offer that the seller rejected. The seller then asks the agent what the buyer's maximum budget is. How should the dual agent respond?
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- → When acting as a dual agent in New York, which type of information can an agent share with both parties?
- → Agent David represents seller Susan in New York City. Susan asks David about the current market conditions for co-op apartments in her neighborhood. This type of information falls under which of David's duties to Susan?
- → A buyer's agent in New York never disclosed that a listed property was the site of a homicide. The buyer later discovers this and threatens legal action against the agent for failing to disclose it. What is the agent's strongest legal defense?
- → 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?
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- → In New York, before a real estate agent can act as a dual agent representing both buyer and seller, what must occur?
- → Under New York's Property Condition Disclosure Act, a seller who chooses not to complete and deliver a Property Condition Disclosure Statement to the buyer must do which of the following?
- → A New York licensee is acting as a dual agent and receives simultaneous offers on the listed property from two different buyers, both of whom the agent also represents. Which obligation is most specifically implicated by the dual agency relationship in this situation?
- → Michael is a buyer's agent in New York. His client makes an offer on a property listed by another agent in his same brokerage. The listing agent becomes unavailable, and Michael's broker asks him to also represent the seller to complete the transaction. What must happen for Michael to legally represent both parties?
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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?