A Florida real estate broker receives an offer on a property listed for $400,000. The offer is for $380,000, with a condition that the seller provides a new roof prior to closing. The seller is unwilling to replace the roof but is open to a price reduction. Which of the following actions by the broker is MOST appropriate?
- AReject the offer on behalf of the seller, knowing the seller won't agree to the roof condition.
- BTell the buyer's agent that the seller will not replace the roof and wait for a revised offer.
- CAdvise the seller to accept the offer and then negotiate the roof replacement cost into the closing statement.
- DPresent the offer to the seller immediately, then relay the seller's counteroffer regarding the price reduction.
Show answer & explanationAnswer & explanation
Correct answer: D. Present the offer to the seller immediately, then relay the seller's counteroffer regarding the price reduction.
A Florida real estate broker, acting as a single agent or transaction broker, has a duty to present all offers and counteroffers in a timely manner. The broker must present the initial offer to the seller, and then facilitate the communication of the seller's counteroffer (e.g., a price reduction instead of a new roof) back to the buyer.
Why the other options are wrong
- A. This is incorrect; a broker cannot reject an offer on behalf of a principal unless explicitly given power of attorney to do so, which is rare and not implied here.
- B. This is incorrect; simply telling the buyer's agent and waiting is not presenting a formal counteroffer and delays the negotiation process, which is against the duty of skillful performance.
- C. This is incorrect; advising the seller to accept with an unagreed condition is poor agency and could lead to disputes.
Duty to Present All Offers
In Florida, a real estate broker must promptly present all offers and counteroffers to their principal, regardless of how favorable or unfavorable they may seem, unless directed otherwise by the principal.
- All offers must be presented.
- Must be presented promptly.
- Applies to both offers and counteroffers.
Memory trick: Every offer is a message that must be delivered, then a response sent back.