ABC Realty Company is a large real estate firm owned by a licensed real estate broker, who listed a property for a total price of $40,000. The broker, along with many of his salespersons, were all principals in an investment company operating under the name of Realty Income Investment Company. This investment company decided to purchase the property so the ABC Realty Company broker presented an all cash offer to his client, the seller, for the full price, but the broker did not disclose to the seller who were the principals of the buyer. The seller accepted the offer and opened escrow. Under these circumstances the ________.
1) Broker's actions were perfectly legal since he offered the full cash price
2) Broker's offer would be legal provided he added to the escrow instructions the fact that the purchasing firm was composed of brokers and salespersons
3) Broker acted properly provided he agreed to waive any commission
4) Broker's action was improper because he did not reveal the true identity of the purchaser