Agency
A Massachusetts agent represents a buyer in a multiple-offer situation. The agent advises the buyer to waive all contingencies to win the bid. If the buyer loses money as a result, the agent:
AIs automatically liable because they gave bad advice
BMay have professional liability if the advice was negligent, but recommending waiver of contingencies based on market conditions can be legitimate✓ Correct
CHas no liability because they only advised, not decided
DIs protected because sellers favor no-contingency offers
Explanation
Advising buyers in competitive markets can include recommending contingency waivers. However, the agent must adequately explain the risks to the buyer so the buyer can make an informed decision. If the advice was negligent or without proper risk disclosure, liability may arise.
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