Tennessee Real Estate License Exam Practice Question
A seller has listed a home with a broker for $112,000. The seller is leaving for a 45-day cruise midway through the listing period, and authorizes the broker through a limited power of attorney to accept any offer of all cash at a price of $108,000 or more pending his return. The broker receives an offer for $110,000 all cash. The broker
Correct Answer: C
Rationale: The broker may accept the offer because the seller granted a limited power of attorney, allowing the broker to accept offers of $108,000 or more. This authority is valid even in the seller's absence.
Option A is incorrect; the broker can act within the authority given without waiting for the seller's return. Option B is not necessary; the broker has the authority to accept the offer directly, making forwarding it to the seller's attorney unnecessary. Option D is incorrect as the broker cannot sign a deed of conveyance without explicit authority to do so, which is not covered by the limited power of attorney.
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