Final answer:
If Broker B intends to purchase a property to encourage a seller to list with her, this is not coercion as long as there is no undue pressure. She may buy the property if proper disclosures are made and laws are followed, possibly using a Licensee Buy Out Addendum, and she may keep the property in her portfolio.
Step-by-step explanation:
When Broker B is offering to purchase a property concurrently to convince the seller to list with her, it is important to understand the correct ethical and legal practices in such a situation. First, offering to purchase a property to persuade a seller to list it is not necessarily coercion, unless there is undue pressure or manipulation involved. Second, a real estate agent can buy a property from their client if all parties agree and proper disclosures are made. Third, depending on the state and its laws, a Licensee Buy Out Addendum may be required when an agent intends to purchase a client's property to ensure full transparency and compliance with regulations. Finally, once Broker B purchases the property, she is indeed entitled to keep the property in her portfolio as with any investor or purchaser of real estate.
In this scenario, Broker B is offering to purchase a property concurrently to convince the seller to list with her. The correct statement out of the options provided would be 3) She must use a Licensee Buy Out Addendum.
A Licensee Buy Out Addendum is a legal document that outlines the terms and conditions of a real estate transaction where a licensee (such as a broker) is purchasing a property from their client. This addendum ensures transparency and protects the interests of both parties involved in the transaction. Therefore, when Broker B is purchasing the property from her client, she must use a Licensee Buy Out Addendum for the transaction to be legally valid.