Vermont licensee Patricia is representing seller Howard. A buyer, unrepresented by any agent, submits an offer that is $25,000 below the listing price. Howard asks Patricia whether he should accept the offer or counter. What is the appropriate scope of Patricia's advice in this situation?
Correct Answer
A) Patricia should advise Howard based on her fiduciary duty of loyalty to him, recommending a strategy that best serves his interests as the seller
As Howard's seller's agent, Patricia owes him full fiduciary duties, including loyalty. She is obligated to provide advice and counsel that serves Howard's best interests as the seller. This includes recommending a negotiating strategy — whether to counter, accept, or reject the offer — based on market conditions, Howard's goals, and the property's value. The buyer's unrepresented status does not diminish Patricia's duty to Howard.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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