Full access allows:
- Solve all tests online without limits;
- Remove all advertisements on website;
- Adding questions to favorite list;
- Save learning progress;
- Save results of practice exams;
- Watching all wrong answered questions.
39. Who is likely to prevail in this action?
After discovering that the purchaser was the broker's daughter, the seller commenced an action against the broker for return of the commission.
The broker did not disclose to the seller that the offer came from the broker's daughter, who planned to resell the building for $600,000 to a company with which she had been negotiating. The seller accepted the daughter's offer, conveyed the building to the daughter, and paid the broker a commission.
The seller of a vacant building listed it for sale with a licensed real estate broker at a price of $500,000. When the six-month listing period was about to expire, the broker presented an offer to purchase for the full listing price.
This is a last question in category
« Go to questions from category ContractsComments (0)
There are no comments at the moment. If you found an error or think question is incorrect, tell everyone about it
Only signed in users can write comments
Signin
A is incorrect. The broker failed to disclose that the purchaser was a family member and that she was going to make a profit from the resale of the building, which was a breach of fiduciary duty to the seller. The fact that the broker did not buy the home is not relevant to this inquiry.
B is incorrect. It is irrelevant that the daughter agreed to purchase the building at the full listing price. A broker has a fiduciary duty to disclose any interest the broker or a family member of the broker may have in the purchase of the property, without regard to the purchase price or other contract terms in the offer presented.
D is incorrect. The commission is paid by the seller who signed the listing agreement with the broker. The daughter did not sign the listing agreement and was not liable for the commission.