Texas Crammer Practice Exam

What must a buyer's agent do if the buyer insists on terms that do not match the listing agreement?

1. Write the offer anyway

2. Unilaterally terminate the agency relationship

3. Refuse to write the offer and terminate the agency

4. Compromise on the terms

The correct answer is: Refuse to write the offer and terminate the agency

In a situation where a buyer insists on terms that do not align with the listing agreement, a buyer's agent must prioritize their fiduciary duty and the ethics of real estate practice. If the buyer is determined to proceed with terms that are contrary to the listing agreement, the agent cannot simply write the offer as it stands, since this could potentially harm the interests of the seller and violate the agent's obligations. By choosing to refuse to write the offer and terminating the agency relationship, the agent is not only upholding their responsibilities but is also protecting themselves from possible legal repercussions. This choice reflects a clear understanding that representing the buyer means adhering to the guidelines set in the listing agreement while ensuring any offer made respects the contractual obligations of all parties. The other options would compromise the agent's integrity or fail to adequately address the situation. Writing the offer anyway could expose the agent to legal risks and ethical concerns. Unilaterally terminating the agency relationship without exploring all avenues first might not be in the best interests of the buyer. Compromising on the terms would not align with the agent's duty to represent agreed-upon contractual standards. Therefore, refusing to write the offer while terminating the agency relationship is the most appropriate course of action.