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broker taft assists buyer beau in the purchase of a home. which service…

Question

broker taft assists buyer beau in the purchase of a home. which service is taft permitted to provide to beau only if taft and beau have entered into an agency agreement and beau is a buyer-client?

  • present a list of mortgage companies and inspectors
  • locate available properties
  • negotiate the best price on behalf of beau
  • put an offer in writing based on beaus guidelines

Explanation:

Identify the core legal question

The question asks which service a broker (Taft) is permitted to provide to a buyer (Beau) only if they have a formal agency agreement establishing Beau as a buyer-client.

Distinguish client vs. customer services

In a Real Estate Business, a broker can provide ministerial acts to a customer (no agency agreement), but fiduciary duties like negotiation are reserved strictly for clients.

Evaluate the options

  • Providing lists of lenders/inspectors is a ministerial customer service.
  • Locating available properties is a general customer service.
  • Negotiating the best price requires representing the buyer's interests as a fiduciary client.
  • Writing an offer based on guidelines is a ministerial administrative task.

Determine the correct choice

Negotiating on behalf of Beau requires a formal agency agreement.

Answer:

  • (A) Present a list of mortgage companies and inspectors
  • (B) Locate available properties
  • (C) Negotiate the best price on behalf of Beau (Correct answer)
  • (D) Put an offer in writing based on Beau's guidelines