7. A broker has listed a property for $225,000. An offer of $210,000 contingent upon inspection comes in the first week and the seller accepts it. Another offer of $205,000 comes in the second week. The seller accepts it as a secondary offer contingent upon the termination of the first offer. The first offeror demands the seller spend $5,000 in repairs before going through with the purchase. The seller may do any of the following EXCEPT
Answer: D
The seller may not ignore the demand and sell the property to the second offeror.
Ignoring the demand for repairs and selling the property to the second offeror is not a viable option, as the seller is still legally bound by the first agreement until it is properly terminated.
A) agree to do the needed repairs and consummate the transaction with the first offeror.
This option is valid as the seller can choose to fulfill the first offeror's request for repairs. By agreeing to the repairs, the seller can proceed with the transaction under the terms of the accepted offer, thereby ensuring that the sale is completed.
B) refuse to do the repairs and still proceed with the sale in as is condition.
This option is also valid. The seller has the right to refuse the repairs and sell the property in its current condition as long as the first buyer accepts this condition. However, this would depend on the terms of the initial agreement and the willingness of the first offeror to proceed without the requested repairs.
C) terminate the first agreement in writing and sell to the second offeror.
This option is permissible. The seller can formally terminate the first agreement if they choose to do so, allowing them to accept the second offer. As long as the first offeror is informed of the termination, the seller is free to proceed with the second offer.
D) ignore the demand and sell the property to the second offeror.
This option is incorrect because the seller cannot simply ignore the first offeror's demand for repairs while still bound by the first contract. The seller must either negotiate a resolution with the first offeror or formally terminate the first agreement before considering the second offer.
Conclusion
The correct answer is that the seller cannot ignore the demand for repairs and proceed with the second offer, as this would violate the terms of the existing agreement with the first offeror. Options A, B, and C each represent valid actions the seller can take in response to the situation, whereas Option D fails to acknowledge the legal obligations stemming from the first accepted offer.