Question

A broker, acting as a transaction broker, lists a property for $248,500. He finds a prospect who is willing to sign an offer at $247,000, but will pay $248,500 if the owner declines the offer. The broker should:_______.
a. buy the property himself at $248,500.
b. submit the $247,000, but disclose that the buyer may pay more.
c. submit the offer without disclosing the purchaser’s position.
d. refuse to submit the $247,000.

Answer 1

Answer:

(b) submit the $247,000, but disclose that the buyer may pay more.

Explanation:

A transaction broker is defined as a broker who provides limited representation to a buyer, a seller or both, in a real estate transaction, but does not represent either in a fiduciary capacity or as a single agent.