A Washington listing broker receives two written offers on the same property simultaneously: Offer A for $510,000 with no contingencies, and Offer B for $530,000 with a financing contingency. The seller instructs the broker to present only Offer A because she prefers the clean offer. What is the broker's obligation under Washington law?
Correct Answer
A) The broker must present all written offers to the seller promptly, regardless of the seller's instructions.
Under Washington law and RCW 18.86, a listing broker owes the seller the duty of loyalty and must act in the seller's best interest. However, the duty to present all written offers is a fundamental professional obligation that cannot be waived by client instruction. Washington DOL rules require brokers to present all written offers promptly. Withholding a bona fide written offer — even at the seller's direction — could harm the seller's interests and constitutes a violation of the broker's duties. The broker must present both offers and allow the seller to make an informed decision.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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