Agency
A Hawaii buyer asks their agent to write an offer $50,000 below the listed price. The agent believes it will be rejected. The agent should:
AA. Refuse to write an offer below listing price
BB. Write the offer as instructed by the buyer, fulfilling the duty of obedience to the client✓ Correct
CC. Negotiate with the seller first before writing the offer
DD. Present a counter at the listed price instead
Explanation
The duty of obedience requires the agent to follow lawful client instructions. Writing a low offer is lawful; the agent should follow the client's instruction while noting their professional opinion.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
State-Specific Concepts
Continuing Education
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