Question

A broker is employed by a seller to sell a house. An unrepresented buyer submits an offer to purchase the seller's house and tells the broker that they will pay more than the offer price if the seller requests it. In this situation, the broker is:

A. not obligated to convey the in formation to the seller because to do so would violate the broker's relationship with the buyer
B. not obligated to convey the information to the seller because the buyer is not bound by this verbal representation
C. obligated to withdraw from the transaction because of conflicting obligations to both parties
D. obligated to convey the information to the seller

Answer 1

The broker is obligated to convey the information to the seller because of their fiduciary duty. The buyer's verbal representation and the broker's relationship with the buyer are not valid reasons to withhold the information. Option A

Step-by-step explanation:

In this situation, the broker is obligated to convey the information to the seller. The broker has a fiduciary duty to act in the best interests of the seller. By not conveying the information about the buyer's willingness to pay more, the broker would be failing to fulfill this duty.

The broker's relationship with the buyer is not a valid reason to withhold this information. The broker cannot prioritize the buyer's interests over the seller's.

Furthermore, the buyer's verbal representation is not what determines their obligation. The broker has an obligation to provide all relevant information to the seller, regardless of the buyer's intent. Option A