A seller has listed a home with a principal broker for $112,000. The seller is leaving for a 45-day cruise midway through the listing period, and authorizes the principal 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 principal broker receives an offer for $110,000 all cash. The principal broker
The principal broker may accept the offer.
The principal broker has been granted a limited power of attorney by the seller, which allows for the acceptance of offers at or above a specified price while the seller is away. In this case, the offer of $110,000 meets the seller's criteria, enabling the broker to proceed with acceptance.
This choice is incorrect because the principal broker holds a limited power of attorney that explicitly allows for the acceptance of offers within specified parameters during the seller's absence. Therefore, the broker is empowered to act without waiting for the seller's return.
While it is often prudent to inform the seller or their attorney of offers received, the limited power of attorney grants the broker the authority to accept the offer directly. Thus, forwarding the offer is not a requirement under the given circumstances.
This is the correct answer because the broker has the authority to accept offers of $108,000 or more while the seller is away. The offer of $110,000 meets this condition, allowing the broker to proceed with acceptance without further authorization.
The principal broker does not have the authority to sign a deed of conveyance simply due to the seller's absence. The power of attorney only allows for acceptance of offers, not for finalizing the sale or transferring ownership, which would require the seller's explicit consent.
A limited power of attorney grants the principal broker the authority to accept offers on behalf of the seller while they are away. Since the offer of $110,000 satisfies the seller's criteria, the broker is authorized to accept it. Choices A, B, and D misinterpret the broker's authority under the power of attorney, underscoring the importance of understanding the limits of such legal instruments in real estate transactions.
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