1. A seller has instructed a licensee not to advertise the price. The broker insists every listing advertised must include the price. What must the licensee do?
Answer: A
The licensee must inform the seller that the broker will not advertise the property.
In this situation, the licensee should inform the seller that the broker's policy requires every listing to include the price, meaning the property cannot be advertised under the current instructions.
A) Inform the seller that the broker will not advertise the property.
This option is correct because it adheres to the broker's policy while also maintaining communication with the seller. The licensee has a responsibility to ensure that the seller is aware of the implications of their instructions in relation to the broker's advertising policy.
B) Obey the broker, since the licensee owes the first duty to the broker.
This option is incorrect because while the licensee does owe duties to the broker, they must also respect the seller's instructions. The licensee cannot simply choose to disregard the seller's wishes without proper communication and resolution.
C) Refuse to advertise the property at all until the seller changes the instructions.
This option is incorrect as it implies a unilateral decision by the licensee without informing the seller. The licensee should not take such an action without first discussing the matter with the seller to clarify the broker's advertising policy.
D) Refuse to take the listing, since the seller's instructions are illegal.
This option is incorrect because the seller’s instruction to not advertise the price is not inherently illegal. The licensee should first communicate with the seller regarding the broker's requirements before considering refusal of the listing.
Conclusion
The correct answer is A, as it balances the obligations of the licensee to both the broker and the seller. By informing the seller that the broker will not advertise the property due to the lack of a price, the licensee is acting responsibly and maintaining ethical standards in the transaction. All other options fail to address the necessary communication and do not uphold the dual responsibility to both parties involved.