A seller in Hilton Head, South Carolina receives two simultaneous purchase offers on the same day. Offer A is for $500,000 with no contingencies. Offer B is for $510,000 but includes a financing contingency and a home sale contingency. The listing agent advises the seller to simply ignore Offer A and negotiate only with the higher-priced Offer B. The seller agrees and begins negotiating with Buyer B. Which statement best describes the listing agent's conduct?
Correct Answer
B) The listing agent acted improperly by advising the seller to ignore Offer A without presenting it and explaining all terms to the seller.
Under South Carolina Real Estate Commission regulations and the listing agent's fiduciary duties, the agent is required to present all written offers to the seller promptly and to explain the terms of each offer so the seller can make an informed decision. Advising the seller to ignore or not consider Offer A — without fully presenting and explaining it — violates the agent's duty of disclosure and loyalty. The seller, not the agent, has the right to decide which offer to pursue after being fully informed of all options.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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