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A broker, acting as agent for the seller, presents an offer to buy from the broker's former college roommate. The broker knows that the buyer will increase the amount of the offer if the seller turns down the offer. When presenting the offer, the broker should

User Alex Gusev
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disclose to the seller that the buyer is willing to increase the offer if the seller turns it down.

As a broker acting as an agent for the seller, the broker has a fiduciary duty to act in the best interest of the seller and provide all material information that could affect the seller's decision. The fact that the buyer is willing to increase the amount of the offer is material information that could affect the seller's decision to accept or reject the offer. Therefore, the broker should disclose this information to the seller when presenting the offer, to allow the seller to make an informed decision. Failure to disclose this information could be seen as a breach of the broker's fiduciary duty and could lead to legal and ethical consequences.
User Russcollier
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