Question 34

The broker should refuse to handle the transaction because she is not acting as a broker for either of the parties.

In this scenario, the broker is not representing either the seller or the buyer, which means she cannot act in a brokerage capacity. Therefore, she should refuse to handle the transaction.

A) handle the transaction, but charge no more than the standard fee for her services.

This option is incorrect because the broker cannot ethically handle the transaction if she is not representing either party. Charging a fee would imply that she is providing brokerage services, which she is not entitled to do in this situation.

B) handle the transaction, but charge no fee for her services.

This option is also incorrect as it suggests the broker would handle the transaction without representing either party. A broker must have a fiduciary duty to at least one party to engage in a transaction, so this situation does not permit her to proceed.

C) refuse to handle the transaction unless the seller is willing to pay a commission.

This choice is incorrect because it implies that the broker could consider handling the transaction if a commission were offered. However, the broker should refuse to handle the transaction altogether since she is not acting for either party, regardless of the commission discussion.

D) refuse to handle the transaction because she is not acting as a broker for either of the parties.

This is the correct option, as the broker's refusal is based on the ethical and legal obligation to represent a party in a transaction. Without representation, she cannot take part in the transaction.

Conclusion

The correct answer is D because the broker's refusal to act is grounded in the principle of representation in real estate transactions. Without the ability to represent either the seller or the buyer, the broker cannot ethically engage in the transaction, making all other options incorrect.