Question 70

This is a violation of fiduciary duty.

When a broker tells a seller that an offer is “ridiculously low” and urges rejection without presenting it, this behavior constitutes a violation of fiduciary duty. A broker has an obligation to act in the best interests of their client, which includes presenting all offers regardless of personal opinion about their value.

A) proper evaluation

This option is incorrect because a proper evaluation would require the broker to present all offers to the seller, allowing them to make an informed decision. By not presenting the offer, the broker is failing to provide a complete and fair evaluation of the selling situation.

B) legal if broker dislikes the price

This option is also incorrect. While a broker may have personal feelings about the offer, it is not legal for them to withhold an offer based on their dislike of the price. The broker's role is to present all offers objectively, regardless of personal opinions.

C) violation of fiduciary duty

This option is correct as it directly addresses the broker's obligation to their client. The broker's failure to present the offer and urging rejection without due process violates their fiduciary responsibility, which mandates acting in the best interests of the seller.

D) permissible under MLS rules

This choice is incorrect. MLS rules generally require that all offers be presented to the seller, regardless of the broker's opinion about the offer's value. Therefore, the broker's actions are not permissible under these guidelines.

Conclusion

The correct answer is that the broker's actions represent a violation of fiduciary duty, as they failed to present the offer to the seller. All other options are incorrect because they either misrepresent the broker's obligations or fail to comply with legal and ethical standards in real estate transactions. The core principle of fiduciary duty emphasizes the necessity for brokers to act in their clients' best interests by ensuring that all offers are disclosed.