A seller listed their house for sale with a broker for $700,000. The seller informed their broker the property needed to be sold quickly. The broker showed the property to a buyer and told them that the seller was desperate and would accept $600,000. Based on the broker's statement, the buyer offered $600,000 for the seller's property. The seller accepted the offer. Concerning the broker's actions, which of the following is true?
a. The broker interpreted the seller's wishes and produced a sale.
b. The broker's actions were reasonable since the seller accepted the offer and was able to sell quickly.
c. The broker's actions were proper because the seller stated they wanted an immediate sale.
d. The broker violated their fiduciary obligation to the seller since they acted in excess of their authority.
Answer: d. The broker violated their fiduciary obligation to the seller since they acted in excess of their authority.
You might also like to view...
In the variable-cost approach, the markup percentage covers the
a) fixed costs only. b) desired ROI and selling and administrative expenses. c) desired ROI only. d) desired ROI and fixed costs.
Under the common law, which of the following defenses, if used by a CPA, would best avoid liability in an action for negligence brought by a client?
A. The client was contributorily negligent. B. The client was comparatively negligent. C. The accuracy of the CPA's work was not guaranteed. D. The CPA's negligence was not the proximate cause of the client's losses.