On October 1st, 2023, Buyer A submits an unconditional offer of $950,000 for a property located at 456 Elm Street, Victoria. Later that day, Buyer B submits an offer of $960,000 conditional on a satisfactory home inspection by October 8th, 2023. The seller, represented by licensee David, wants to accept Buyer B's higher offer. What must David do in this scenario?

Question: On October 1st, 2023, Buyer A submits an unconditional offer of $950,000 for a property located at 456 Elm Street, Victoria. Later that day, Buyer B submits an offer of $960,000 conditional on a satisfactory home inspection by October 8th, 2023. The seller, represented by licensee David, wants to accept Buyer B's higher offer. What must David do in this scenario?

Answer options:

• Immediately accept Buyer B's offer and reject Buyer A's offer without communicating further.
• Advise the seller to accept Buyer B's offer, but inform Buyer A's agent that their offer was unsuccessful without disclosing details.
• Inform Buyer A's agent (if any) about Buyer B's higher offer to encourage a potential revision. ✅ Advise the seller that all offers must be presented, and if accepting Buyer B's conditional offer, the seller should understand the risk of the subject not being removed.

Correct answer: Advise the seller that all offers must be presented, and if accepting Buyer B's conditional offer, the seller should understand the risk of the subject not being removed.

Explanation: Licensees must present all offers to their client for consideration. When advising on a conditional offer, the licensee must explain the risks involved if the condition is not met, as per the Real Estate Services Act.