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:

Question

Davon Phillips

Business

18 July, 08:27

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:

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Answers (1)

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Maximo Davis · 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

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