Question 72

The principal broker may accept the offer.

The principal broker is authorized through a limited power of attorney to accept any all-cash offer of $108,000 or more while the seller is away. Since the received offer of $110,000 meets this threshold, the broker is within their rights to accept it.

A) may not accept the offer until the seller returns

This option is incorrect because the principal broker has been granted limited power of attorney, which specifically allows them to accept offers on behalf of the seller during their absence. The broker does not need to wait for the seller's return to act on the offer.

B) must forward the offer to the seller's attorney for consideration

While it is good practice to keep the seller informed, the principal broker is not required to forward the offer to the seller's attorney under the given circumstances. The limited power of attorney empowers the broker to accept the offer without needing additional consultation.

C) may accept the offer

This option is correct as the principal broker is authorized to accept any all-cash offer of $108,000 or more during the seller's absence. Therefore, the broker can accept the $110,000 offer without needing further instructions from the seller.

D) may sign a deed of conveyance if the seller does not return on time

This option is incorrect because the limited power of attorney does not grant the broker the authority to sign a deed of conveyance on behalf of the seller. Such an action requires explicit authorization beyond just accepting an offer.

Conclusion

The correct answer is that the principal broker may accept the offer, as they have been given the authority to do so through a limited power of attorney. All other options fail because they either misinterpret the broker's authority or place unnecessary restrictions on the actions the broker can take while the seller is away.