A seller has listed a home with a broker for $112,000. The seller is leaving for a 45-day cruise midway through the listing period, and authorizes the broker through a limited power of attorney to accept any offer of all cash at a price of $108,000 or more pending his return. The broker receives an offer for $110,000 all cash. The broker
The broker may accept the offer.
The broker has been granted a limited power of attorney from the seller, which allows him to accept offers at or above the specified price of $108,000. Since the received offer of $110,000 meets this condition, the broker is authorized to accept it on the seller's behalf.
This choice is incorrect because the broker has been given explicit authority through the limited power of attorney to accept offers while the seller is away. The power of attorney supersedes the need for the seller's immediate presence to finalize the offer.
While forwarding offers may be a common practice, it is not a requirement in this case. The broker has the authority to act independently within the limits of the power of attorney, which allows him to accept the offer directly without needing to consult the seller's attorney.
This choice accurately reflects the situation, as the broker has been authorized to accept any cash offer at $108,000 or more. The received offer of $110,000 falls within this range, and thus the broker can accept it without further approval from the seller.
This option is incorrect because the limited power of attorney does not grant the broker the authority to sign a deed of conveyance. The broker can accept offers but does not have the authority to finalize the transfer of property without the seller's explicit consent upon their return.
In this scenario, the broker's limited power of attorney enables him to accept offers of $108,000 or more in the seller's absence. The received offer of $110,000 meets this threshold, allowing the broker to act on behalf of the seller. This authority ensures a smooth transaction process, even while the seller is away, but does not extend to signing legal documents like a deed of conveyance without further directions.
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