Contracts
A Florida listing broker learns that the buyer who made an accepted offer has submitted falsified income documents to their lender. The broker should:
AKeep the information confidential since it was disclosed during the transaction
BAdvise the seller of this potential fraud since it affects the likelihood of closing✓ Correct
CReport the buyer to the FBI
DNotify the listing broker's attorney and take no further action
Explanation
Mortgage fraud is a federal crime. A broker who becomes aware of falsified loan documents has a duty to advise the seller — this is material information that affects whether the transaction will close. The broker may also have ethical obligations to avoid participating in or facilitating fraud. The broker should consult legal counsel about reporting obligations to lenders and authorities.
Related Florida Contracts Questions
- A Florida property listed at $450,000 receives an offer for $430,000 with a 45-day closing period. The seller counters at $440,000 with 30-day closing. The buyer does NOT respond within the offer deadline. What is the status?
- A Florida commercial lease between two sophisticated business parties is being negotiated. The tenant wants to include a 'demolition clause' in the lease. This clause would typically:
- A Florida real estate 'option' contract requires the optionee to provide 'consideration.' The consideration for the option is:
- A Florida real estate contract contains a 'liquidated damages' clause providing that the seller may retain the earnest money deposit as damages if the buyer defaults. For this clause to be enforceable:
- A Florida real estate contract is considered 'executory' when:
- A Florida real estate transaction is subject to a 'subject to' clause requiring the buyer to obtain a satisfactory home inspection. If the inspection reveals issues, the buyer in a typical FAR-BAR AS IS contract may:
- A Florida contract contains a clause requiring disputes to be settled by 'binding arbitration.' This means:
- A Florida buyer receives a seller's counteroffer and wants to counter back. What happens to the seller's counteroffer?
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →