Florida Real Estate Broker ExaminationReal Estate Law and RegulationsMedium
A Florida real estate broker is acting as a single agent for a seller. During a showing, a potential buyer expresses strong interest but mentions that they will need to sell their current home before they can purchase the seller's property. The buyer's agent then asks the seller's single agent if the seller would be willing to accept an offer contingent on the sale of the buyer's home. What is the seller's single agent's primary duty in this situation regarding the buyer's inquiry?
- ATo ensure confidentiality of the seller's financial situation.
- BTo negotiate with the buyer's agent on behalf of the seller without immediate consultation.
- CTo advise the buyer's agent that the seller is unlikely to accept such a contingency.
- DTo immediately communicate the buyer's inquiry to the seller.
Show answer & explanationAnswer & explanation
Correct answer: D. To immediately communicate the buyer's inquiry to the seller.
A single agent has a fiduciary duty of full disclosure and obedience to their principal. This includes communicating all offers, counteroffers, and any material facts or inquiries that may affect the principal's decision-making process, including a buyer's willingness to make a contingent offer.
Why the other options are wrong
- A. Confidentiality is a duty, but it doesn't preclude communicating relevant inquiries to the client.
- B. Negotiating without the principal's immediate consultation or instruction would be a breach of the duty of obedience and disclosure.
- C. It is not the agent's role to prejudge the seller's willingness without consulting them.
Single Agent Duties (Florida)
In Florida, a single agent represents either the buyer or the seller, operating under common law fiduciary duties including loyalty, obedience, full disclosure, confidentiality, and accounting.
- Highest level of representation.
- Must deal honestly and fairly.
- Requires written disclosure and consent.
Memory trick: Remember 'OLD CAR': Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care.