A prospective homebuyer signs a brokerage agreement under which the real estate company will help the client find a three-bedroom house in the $185,000 to $200,000 price range. A seller comes into the real estate company's office and signs a listing agreement in which the real estate company will act as the seller's agent to sell a two-bedroom condominium for $170,000. Based on these facts, which statement is TRUE

Question

06-08-2020
Business

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A prospective homebuyer signs a brokerage agreement under which the real estate company will help the client find a three-bedroom house in the $185,000 to $200,000 price range. A seller comes into the real estate company's office and signs a listing agreement in which the real estate company will act as the seller's agent to sell a two-bedroom condominium for $170,000. Based on these facts, which statement is TRUE

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fichoh fichoh · Answer 1 · 2020-08-10T03:49:07+02:00

Options:

a.) The buyer is the real estate professional's client; the seller is the real estate professional's customer.

b.) The buyer is the real estate professional's customer; the seller is the real estate professional's client.

c.) While both the buyer and the seller are clients, the real estate professional owes the fiduciary duties of an agent only to the seller.

d.) Because both the buyer and the seller are the real estate professional's clients, the real estate professional owes the fiduciary duties of an agent to both

Answer: d.) Because both the buyer and the seller are the real estate professional's clients, the real estate professional owes the fiduciary duties of an agent to both

Explanation: According to the scenario above, both the buyer and the seller are clients of the real estate professional and as such service providers or professionals have moral and ethical obligations which must be performed in other to avoid situations which could compromise the integrity and professionalism of the real estate personnel. Therefore the real estate professional owes both the seller and buyer fiduciary duties (ethical relationship) and hence should deal with fairness between them.