California Real Estate Practice Exam

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Broker A brings an offer to Seller B on behalf of Buyer C, and Seller B later negotiates directly with Buyer C. Seller B has violated?

  1. The exclusivity clause

  2. The duty of care

  3. The principle of subrogation

  4. An ethical boundary

The correct answer is: The duty of care

Seller B has violated the duty of care, which is an ethical and legal responsibility to act in the best interest of their client. By negotiating directly with Buyer C, Seller B is not acting in the best interest of their client, as they were initially brought the offer by Broker A on behalf of Buyer C. This also violates the principles of agency and loyalty, which are important aspects of the duty of care. The other options are incorrect because - The exclusivity clause is related to a contract between the broker and client, which would not apply in this scenario. - The principle of subrogation is not relevant in this situation, as it typically pertains to insurance and legal matters. - While Seller B's actions may be seen as unethical, it is not specifically an ethical boundary that has been violated in this scenario. The duty of care is the specific ethical and legal responsibility to

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