QUESTION IMAGE
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
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.
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- (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