Texas Real Estate Sales Agent ExamAgencyMedium
A real estate sales agent is working with a seller under a valid listing agreement. The agent receives an offer from a buyer. Before presenting this offer to the seller, the agent receives a second, significantly higher offer for the same property. What is the agent's primary obligation regarding these offers?
- APresent both offers to the seller in the order they were received, without delay.
- BPresent only the higher offer to the seller, as it is in the seller's best interest.
- CAdvise the seller to wait for even better offers before presenting any.
- DPresent the higher offer first, and only present the lower offer if the first is rejected.
Show answer & explanationAnswer & explanation
Correct answer: A. Present both offers to the seller in the order they were received, without delay.
A seller's agent has a fiduciary duty of full disclosure and obedience to their client. This includes promptly presenting all offers received to the seller, regardless of their perceived value or the order of receipt. The seller has the right to consider all options.
Why the other options are wrong
- B. Withholding any offer, even a lower one, violates the agent's duty of disclosure and loyalty to the seller.
- C. While an agent can advise, withholding current offers to wait for future ones without the seller's explicit instruction is a violation of the duty to present all offers.
- D. Presenting offers sequentially or prioritizing one over another is a violation of the agent's duty to the seller.
Duty to Present All Offers
A fiduciary duty requiring an agent to promptly present all offers received on a property to their client, regardless of the offer's terms, validity, or perceived desirability.
- Applies to all written offers, and sometimes oral offers if material.
- Must be presented without delay.
- Agent cannot withhold offers based on personal judgment.
Memory trick: All offers are like letters in the mailbox; deliver them all, promptly.