Question of the Day

April 3rd, 2020

A broker has listed Mr. Applegate's property under an exclusive listing. He also has an option to purchase the property within 30 days. If after 27 days, the broker decides to buy the property, he must:

Explanation

When a broker is employed to sell a property and is also given an option to purchase the property, they occupy the dual status of agent and purchaser. Before the broker can purchase the property, they must divest themselves of their obligations as an agent by making a full disclosure of all known material facts about the transaction and inform the seller of any additional offers on the property. The broker must also inform the principal of any profit the broker expects to make on the property.

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