An agent is trying to sell a house for $100,000 for her principal. The principal will sell the house for as little as $80,000, but wants to get as much as possible. The agent tells her cousin to offer $81,000. The agent's actions are:

Question

Quizplus · Accepted Answer

The agent is violating the duty of loyalty to the principal by encouraging the cousin to make an offer that is below the asking price and potentially reducing the amount the principal could receive for the property. The agent should have advised the cousin to offer the full asking price or given the principal the opportunity to negotiate for a higher price.

An Agent Is Trying to Sell a House for $100,000