Question

multiple choice question

when a seller is considering one offer, the broker receives another written offer on the property. the broker should

hold the new offer as a backup until the seller decides on the first offer
refuse to accept the new offer
submit the new offer to the seller
submit the new offer to the seller only if it better than the first offer

Explanation:

Identify the core legal obligation

The question asks about a broker's duty when receiving a new written offer while the seller is already considering an existing offer. This scenario directly involves the broker's Fiduciary Duties and the rules governing the Agency Relationship between a real estate licensee and their client (the seller).

Analyze the options against fiduciary duties

Under real estate license law and common law agency principles, a broker has a fiduciary duty of absolute loyalty and disclosure to their client. This includes the obligation to present all written offers to the seller as soon as possible, unless the seller has explicitly instructed the broker otherwise in writing.

• Option 1 ("Hold the new offer as a backup..."): Holding or delaying an offer violates the duty of prompt presentation and disclosure.
• Option 2 ("Refuse to accept the new offer"): A broker does not have the authority to refuse written offers on behalf of a seller unless specifically instructed.
• Option 3 ("Submit the new offer to the seller"): This aligns perfectly with the broker's duty to keep the principal fully informed of all material facts and offers.
• Option 4 ("Submit the new offer... only if it is better..."): The broker cannot unilaterally decide which offers are "better" or withhold offers based on personal judgment.

Formulate the final conclusion

The broker must immediately present the new written offer to the seller, allowing the seller to make the decision on how to proceed.

Answer:

• Hold the new offer as a backup until the seller decides on the first offer
• Refuse to accept the new offer
• Submit the new offer to the seller (Correct answer)
• Submit the new offer to the seller only if it better than the first offer