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 $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, authorized through a limited power of attorney, has the discretion to accept offers of $108,000 or more on behalf of the seller while he is away. Since the received offer of $110,000 meets this condition, the broker is permitted to accept it.
This option is incorrect because the broker has been granted a limited power of attorney, which allows him to act on the seller's behalf during the seller's absence. Therefore, the broker is not required to wait for the seller's return to accept the offer.
While it is prudent for the broker to communicate offers to the seller, the power of attorney explicitly allows the broker to accept offers within the specified parameters. Thus, forwarding the offer to the seller's attorney is not a requirement in this scenario.
This is the correct option because the broker has the authority to accept any offer of $108,000 or more due to the seller's limited power of attorney. The $110,000 offer falls within this range, making acceptance valid.
This option is misleading because the broker's authority under a limited power of attorney does not typically extend to signing a deed of conveyance unless explicitly stated. Acceptance of the offer does not imply that the broker can finalize the sale without further instructions from the seller.
In this scenario, the broker is empowered to accept offers of $108,000 or more during the seller's absence, as outlined by the limited power of attorney. The specific offer of $110,000 meets this threshold, allowing the broker to act decisively without waiting for the seller's return or needing additional approval. Understanding the implications of the power of attorney is crucial for real estate transactions, ensuring that agents can effectively manage offers and negotiations on behalf of their clients.
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