Michigan Real Estate Exam

Total Questions: 89 (Free preview: first 5 only)

Question 1 of 89

A real estate agent is contacted by a potential buyer whose financial interest is questionable, but who needs to write an offer. The agent should:

A. refuse to write this offer. Correct
B. write it on a promissory note.
C. ask for a high earnest money payment.
D. refer any remuneration to the seller.

Rationale: In this scenario, refusing to write the offer protects both the agent's professional integrity and the seller's interests. If the buyer's financial capability is questionable, proceeding could lead to complications or a failed transaction.

Option B, writing the offer on a promissory note, is inappropriate as it does not ensure the buyer's financial reliability and could complicate the transaction further. Option C, asking for a high earnest money payment, may not guarantee the buyer's commitment and could mislead the seller about the buyer's financial stability. Option D, referring remuneration to the seller, does not address the underlying issue of the buyer's questionable financial interest and could jeopardize the agent's fiduciary duty.

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