Texas Real Estate Sales Agent ExamAgencyMedium
A real estate sales agent receives an offer on a property listed by their broker. The offer is significantly lower than the asking price, and the seller has previously indicated they would not consider such low offers. The agent believes presenting this offer would be a waste of the seller's time. What is the agent's primary duty in this situation?
- AReject the offer on behalf of the seller to save time.
- BAdvise the buyer's agent that the offer is too low and unlikely to be accepted.
- CCounter the offer immediately with a price the seller might accept.
- DPresent the offer to the seller promptly, regardless of personal opinion.
Show answer & explanationAnswer & explanation
Correct answer: D. Present the offer to the seller promptly, regardless of personal opinion.
An agent has a fiduciary duty of obedience and disclosure to their client. This means all offers, regardless of their perceived acceptability or the agent's opinion, must be presented to the seller promptly until closing, unless the seller has specifically instructed otherwise in writing.
Why the other options are wrong
- A. The agent does not have the authority to reject offers on behalf of the seller without specific, written instructions.
- B. This could be seen as negotiating on behalf of the seller without explicit instruction or discouraging an offer, which is a breach of duty.
- C. Countering an offer requires the seller's direction and approval; the agent cannot do so unilaterally.
Duty to Present All Offers
An agent's fiduciary obligation to present all offers to their client promptly and objectively, regardless of the offer's terms, until the transaction closes or the agency relationship terminates.
- Applies to all offers, written or verbal.
- Must be presented promptly.
- Unless client provides written instructions to the contrary.
Memory trick: All offers are like urgent mail; the agent is the delivery person, not the censor.