Question 12

No, because all prices are freely negotiable

The broker has not violated any law by suggesting a lower offer of $120,000, as prices in real estate transactions are negotiable. It is common practice for buyers to make offers below the asking price, and the broker's suggestion reflects this flexibility.

A) Yes, because the broker should not write an offer below the listing price

This option is incorrect because brokers are not legally restricted from submitting offers below the asking price. It is a standard part of the negotiation process, and buyers often seek to negotiate lower prices.

B) Yes, because the broker has offered property on terms other than those authorized by the client

This option is also incorrect. The broker's role includes advising clients on negotiation strategies, and suggesting a lower offer does not constitute offering the property on unauthorized terms. The broker is still acting within the parameters of the client's listing.

C) No, because all prices are freely negotiable

This option is correct. Real estate prices are inherently negotiable, and it is within the broker's duties to suggest offers that might benefit the buyer, even if those offers are lower than the listed price.

D) No, because the broker is representing only the buyer

While this option is true in that the broker may be representing the buyer, it does not fully address the legality of suggesting a lower offer. The core issue is the negotiability of prices, which makes this option insufficient as a standalone justification.

Conclusion

The correct answer is C, as it emphasizes the fundamental principle of negotiability in real estate transactions. All other options misinterpret the broker's role and the legalities surrounding price negotiation, which is a common and accepted practice in the industry.