A seller in Midwest City, Oklahoma receives a full-price written offer from Buyer A. Before responding, the seller also receives a higher written offer from Buyer B. The seller instructs the listing broker to reject Buyer A's offer without presenting it to the seller for review, and to accept Buyer B's offer. The listing broker follows the seller's instructions. Which of the following best describes the legal and regulatory consequences under Oklahoma law?
Correct Answer
B) The broker violated OREC rules by failing to present Buyer A's written offer to the seller before taking any action on it
Under OREC rules and Title 59 O.S. § 858-354, a listing broker has a non-waivable duty to present all written offers to the seller promptly and without alteration. This duty cannot be overridden by the seller's instructions. The broker must present Buyer A's offer to the seller so the seller can make an informed decision. By rejecting Buyer A's offer without presenting it, the broker violated Oklahoma license law and is subject to OREC disciplinary action.
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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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Specific performance in North Dakota:
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