Difficulty: Easy

Average Score: 100%

A licensee receives a second offer on a property after a sales contract on a listing has been signed. The correct course of action would be to

Rationale

Present the second offer to the seller as a back-up.

In real estate transactions, when a sales contract has been signed, it is still the responsibility of the licensee to act in the best interest of the seller by presenting any subsequent offers. The second offer can serve as a back-up in case the first contract does not proceed to closing.

A (Keep the second offer on file.) YOUR ANSWER

Simply keeping the second offer on file does not fulfill the licensee's duty to the seller. It is important to actively present the offer to the seller, as it may provide options should the first contract fall through. Ignoring an offer does not consider the seller's best interests.

C (Tell the buyer that a second offer cannot be presented because a contract has been signed.) YOUR ANSWER

This choice is incorrect because it misrepresents the licensee's obligations and the rules governing real estate transactions. Even if a contract is signed, the licensee must communicate all offers to the seller, as the seller retains the right to consider all potential options.

D (Urge the seller to accept the second offer if it is better.) YOUR ANSWER

While it is appropriate to provide the seller with information about the second offer, urging them to accept it can be seen as overstepping. The licensee must remain neutral and allow the seller to make their own decision based on the merits of both offers without pressure.

Conclusion

In real estate, presenting all offers to the seller is crucial, even after a contract has been signed. By presenting the second offer as a potential back-up, the licensee ensures that the seller is fully informed and can make the best decision for their circumstances. This practice upholds the ethical standards of the profession and protects the seller's interests.

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