Author Question: Hannah Hall is a broker who has the listing agreement for the sale of the Taylor home. The ... (Read 66 times)

Bernana · **on:** Jun 24, 2018

Hannah Hall is a broker who has the listing agreement for the sale of the Taylor home. The Wettsteins visit the Taylor home during an open house and talk with Hannah. The Wettsteins are not completely sold on the Taylor home, so Hannah offers to show them five other homes she has in the area that she believes will suit the Wettsteins' needs. The Wettsteins explain to Hannah that they cannot spend more than 400,000. Hannah finds a house for the Wettsteins. It is listed for 400,000 but the Wettsteins, after looking at comparables in the area, decide to offer 375,000. The owner of the house (a house also listed by Hannah and her agency) asks Hannah, How far do you think we can get them to go up? Hannah responds, I know exactly how far they will go. Discuss Hannah's relationship with the Wettsteins as well as the homeowner.

Question 2

In states that follow ______, a third party can recover from a negligent accountant if there was an agreement between the third party and the accountant.
A)the flexible rule
B) the intended user rule
C) the foreseeable user rule
D) the contract rule

gcook · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

Without a dual agency listing, Hannah is either the agent/broker or a subagent of the listing broker. Her duty is to the seller, not the buyer. So, Hannah is free to disclose the 400,000 max. However, if the Wettsteins got Hannah to sign a dual agency agreement then Hannah would not be able to reveal information they disclosed to her to her seller clients.

Answer to Question 2

D