Question

Two salespeople working for the same broker obtained offers on a property listed with their firm. The first offer was obtained early in the day. A second offer for a higher

purchase price was obtained later in the afternoon. The broker presented the first offer to the seller that evening. The broker did not inform the seller about the second offer so that the seller could make an informed decision about the first offer. Which of the following is true?

A. After the first offer was received, the broker should have told the salespeople that no additional offers would be accepted until the seller decided on the offer.
B. The broker has no authority to withhold offers from the seller
C. The broker was smart to protect the seller from getting into a negotiating battle over two offers
C.The broker's actions are permissible provided the commission is split between the two salespeople.

Answer 1

The broker has no authority to withhold offers from the seller, as all offers must be presented to allow the seller to make an informed decision. Withholding information violates the broker's fiduciary duty to act in the best interest of their client.

Step-by-step explanation:

In the scenario presented, the broker has withheld a higher offer from the seller after already presenting an earlier, lower offer. According to professional ethics and legal obligations in real estate, it is the duty of the broker to present all offers received to the seller to allow them to make an informed decision. Any action to withhold such information undermines the seller's ability to act in their best interest.

Therefore, the correct answer is: The broker has no authority to withhold offers from the seller. All offers on a property must be communicated to the seller unless the seller has specifically instructed otherwise in writing. By not doing so, the broker risks violating the fiduciary duty owed to the seller. Real estate agents are legally obligated to act in the best interests of their clients, which includes providing complete and accurate information relevant to any transaction.