Question

A broker representing the seller has taken a listing on a property at a price of $400,000. The broker showed the property to a potential buyer and the buyer made an offer of $375,000, but told the broker that he/she would pay the full $400.000 if necessary. The broker should tell the seller:

Answer 1

In the case mentioned in the question the seller's broker violated their fiduciary obligation to the seller because they have acted in excess /beyond their authority

Step-by-step explanation:

A broker who is representing the seller has taken a listing on a property at a price of $400,000. The broker showed the property to a potential buyer and the buyer made an offer of $375,000, but told the broker that he/she would pay the full $400,000 if necessary.

After analysis the below mentioned statement from the question we can view the following facts

• The price of the property is $400,000
• The broker on belhalf of the seller agrees to sell the property to the buyer at $375,000 which is less than the listing price of the property .

Hence we can say that the seller's broker violated their fiduciary obligation to the seller because they have acted in excess /beyond their authority