Question of the Day

Owner Joe tells his listing broker, Stephen, that he wants to sell his house as soon as possible and would accept $350,000. Stephen tells buyer Selwyn that Joe has financial troubles and will accept a much lower price, possibly as low as $300,000. Joe, ultimately, accepts an offer from Selwyn for $300,000. Broker Stephen is guilty of:

Explanation

Broker Stephen's actions are a clear violation of his fiduciary responsibility to the seller. This would also be a violation of the Realtors Code of Ethics since the seller did not authorize broker Stephen to disclose such information to the buyer. If owner Joe's financial troubles were in fact true and he authorized broker Stephen to inform the buyer of such, it would not be a violation.

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