A broker who receives 40 acres of land as a commission decides to sell it after closing. What does accepting an increased offer suggest?

Study for the Real Estate Principles Exam. Get ready with real-world scenarios, multiple-choice questions, and detailed explanations. Enhance your understanding and confidence for your big day!

Accepting an increased offer suggests that the broker is acting in an acceptable manner because it reflects the broker's ability to effectively respond to market dynamics. When a broker receives property as a commission, they have the right to sell it and maximize its value. If they receive a higher offer after the initial transaction, accepting it demonstrates sound business judgment and an effort to benefit from a favorable market situation.

In this context, the broker's actions align with good business practices and the inherent rights of property ownership. The ability to accept higher offers is a part of the competitive nature of real estate, where market values can fluctuate. Whether the broker's acceptance of an increased offer is deemed ethical or not would ultimately depend on all relevant facts and their disclosure of the transaction to the involved parties, but in this case, it indicates an engagement with the market rather than any indication of wrongdoing.

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