A broker receives a full price offer on a house they are listing. Before they present the offer to the seller, another broker brings in an all cash offer for $5,000 less. The listing broker is to:
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present both offers at the same time.
Presenting both offers simultaneously would create an artificial situation where the seller cannot evaluate each offer independently. This could disadvantage the seller who might respond to the first offer with a counteroffer before knowing about the second option.
refuse to present the second offer.
Refusing to present the second offer violates the listing broker's fiduciary duty to the seller. California law requires brokers to present all offers to their client, regardless of who brings them in.
tell the other broker the property has been sol
d. present the first offer in the morning and the second offer in the evening.
Presenting offers at different times creates an artificial delay that disadvantages the seller. The broker's duty is to present all offers promptly so the seller can make an informed decision without unnecessary delays that could harm their interests.
Why is this correct?
Option C is correct because it accurately reflects California law requiring brokers to present all offers to sellers. The phrase 'tell the other broker the property has been sold' is the appropriate action to take before presenting the first offer, as it maintains the integrity of the negotiation process and fulfills the broker's fiduciary duty to the seller.
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