Question:

A seller listed their home for sale with their broker for $400,000. The seller told their broker it was imperative that the property be sold quickly. The seller’s broker showed the property to a buyer and told them the seller was financially insolvent and would accept $380,000. Based on the seller’s broker’s statement, the buyer submits a $380,000 offer which the seller accepts. Concerning the seller’s broker’s actions, which of the following is true?

A the seller’s broker violated their fiduciary obligation to the seller since they acted in excess of their authority.

explanation

This activity is a violation of the fiduciary duty regardless of the later actions or results.