An Oregon principal broker represents a seller. The broker receives a written offer from an unrepresented buyer. Without the seller's knowledge, the broker modifies one term of the buyer's offer before presenting it to the seller. The seller accepts the modified offer. Under Oregon law, which of the following best describes the broker's conduct?
Correct Answer
A) The broker violated ORS Chapter 696 by altering an offer without authorization from all parties.
Under ORS Chapter 696, Oregon licensees have a duty to present all written offers to their clients promptly and without alteration. Modifying an offer without the knowledge and consent of the offeror (the buyer) is a serious violation of Oregon license law. The broker's duty of honesty and fair dealing extends to all parties in the transaction, including unrepresented buyers. Altering an offer without authorization could also constitute fraud and expose the broker to disciplinary action by the Oregon Real Estate Agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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.
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