Sarah, an unrepresented buyer, is interested in purchasing a property listed by John from Pacific Peak Realty. Sarah asks John for his opinion on a fair offering price, knowing that John is the seller's agent. What should John do in this situation?

Question: Sarah, an unrepresented buyer, is interested in purchasing a property listed by John from Pacific Peak Realty. Sarah asks John for his opinion on a fair offering price, knowing that John is the seller's agent. What should John do in this situation?

Answer options: ✅ Advise Sarah that as the seller's designated agent, he cannot provide specific advice on an offer price but can present any offer she wishes to make to his client.

• Suggest a price range to Sarah that he believes would be acceptable to the seller, as this may facilitate a sale.
• Refer Sarah to a mortgage broker he knows who can assist her with financial advice related to the purchase.
• Offer to act as a limited dual agent for both Sarah and the seller to help negotiate a fair price.

Correct answer: Advise Sarah that as the seller's designated agent, he cannot provide specific advice on an offer price but can present any offer she wishes to make to his client.

Explanation: As a seller's designated agent, John owes fiduciary duties solely to the seller. He cannot provide confidential advice to an unrepresented buyer, as this would breach his duty of loyalty to his client. He must direct unrepresented parties to seek independent advice.