Question 79

The licensee declines to present a buyer's unreasonable offer to the seller.

Declining to present a buyer's unreasonable offer to the seller constitutes a breach of fiduciary duty because it undermines the licensee's obligation to act in the best interest of the buyer. A licensee has a responsibility to advocate for their client's interests, including presenting all offers, regardless of their perceived reasonableness.

A) The licensee discloses to the buyer that the listing agent informed him the sellers are in the process of a divorce.

This option does not represent a breach of fiduciary duty. Sharing information about the sellers' personal circumstances, such as a divorce, does not compromise the buyer's interests and may even provide context that aids the buyer in negotiations.

B) The licensee discloses that the property is priced higher than other recently sold comparable properties.

This action is not a breach of fiduciary duty. In fact, it demonstrates transparency and can help the buyer make an informed decision regarding the property's value in relation to the market, which is in the buyer's best interest.

D) The licensee refuses to enter into a written buyer's agency agreement.

While refusing to enter into a written buyer's agency agreement may indicate a lack of commitment to the buyer's representation, it is not inherently a breach of fiduciary duty. The licensee is still able to provide services without a formal agreement, though it is generally advisable to have one for clarity and protection.

Conclusion

The correct answer, declining to present a buyer's unreasonable offer, clearly represents a breach of fiduciary duty as it fails to support the buyer's interests. In contrast, the other options either demonstrate compliance with fiduciary responsibilities or do not actively harm the buyer's position. Hence, only option C definitively violates the duty owed by the licensee to the buyer.