Kovats Real Estate School Practice Test

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Study for the Kovats Real Estate School Test. Get ready with flashcards and multiple-choice questions, each with hints and explanations to ensure success on your exam!

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What must a broker transmit to his principal?

Only the accepted offers
All written offers
Only offers above a certain amount
Verbal offers as well

The correct answer is: All written offers

The role of a broker involves acting as an intermediary between the buyer and seller, and part of this responsibility includes keeping their principal informed about all relevant information regarding offers on a property. Transmitting all written offers ensures that the principal has a complete understanding of the market interest in their property, which empowers them to make well-informed decisions regarding negotiations. This obligation to relay all written offers is rooted in the fiduciary duty brokers have to their clients, requiring them to act in the best interests of their principals. Providing comprehensive information, including all written offers, demonstrates transparency and builds trust in the broker-client relationship. It enables the principal to consider every opportunity, regardless of the offer's amount, ensuring that critical decisions are made based on the full scope of available options. While there may be scenarios where specific offers might be more pertinent than others, the ethical and legal standard mandates that brokers present all written offers to their principals for consideration.