PSI New Jersey Real Estate State Practice Exam

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Prepare for the PSI New Jersey Real Estate State Exam. Study with flashcards and multiple choice questions, each with detailed hints and explanations. Get ready to succeed on your exam!

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If a seller authorizes a broker to accept all cash offers of $108,000 or more while they are away, what should the broker do upon receiving a $110,000 all cash offer?

Decline the offer
May accept the offer
Counter the offer
Inform the seller upon their return

The correct answer is: May accept the offer

When a seller authorizes a broker to accept all cash offers of $108,000 or more in their absence, the broker has the authority to act on the seller’s behalf according to those parameters. Since the received offer of $110,000 exceeds the seller's established threshold, the broker can proceed to accept this offer directly. This authority implies that the broker is acting in accordance with the seller's instructions and interests, which legitimizes the acceptance of the offer without needing further consultation or approval from the seller during their absence. It streamlines the process of closing the sale and capitalizes on the favorable terms presented in the offer. Once the seller returns, they will be informed of the accepted offer, allowing for the completion of the transaction in line with the seller's initial agreement with the broker.