New York Real Estate Salesperson ExaminationNew York State Specific Laws and RegulationsMedium
A New York real estate salesperson is assisting a buyer client who wants to purchase a property currently listed for $450,000. The buyer wants to offer $420,000. The salesperson, eager to close the deal, advises the buyer to offer $440,000, stating that a lower offer would be insulting and likely rejected. Which ethical duty is the salesperson potentially violating?
- ADuty of Obedience.
- BDuty of Loyalty.
- CDuty of Confidentiality.
- DDuty of Accountability.
Show answer & explanationAnswer & explanation
Correct answer: A. Duty of Obedience.
The salesperson has a duty of obedience to their client's lawful instructions. If the buyer wants to offer $420,000, the salesperson must present that offer, even if they believe it's too low. Advising against the client's direct instruction and pushing for a higher offer violates this duty.
Why the other options are wrong
- B. While loyalty is related, the direct violation here is the failure to follow the client's specific instruction regarding the offer amount.
- C. Confidentiality relates to protecting private information, not following instructions.
- D. Accountability relates to handling funds and property, not following instructions on an offer.
Duty of Obedience (Offer Submission)
A real estate agent has a fiduciary duty to obey all lawful instructions of their client, including submitting offers at the client's desired price, even if the agent disagrees with the strategy.
- Must follow client's lawful instructions.
- Applies to offer price and terms.
- Agent's judgment should not override client's directive.
Memory trick: When a client speaks their price, 'Obey Their Wish, Not Your Advice'.