How can the intermediary broker advise the seller or the buyer on things such as the value of the property, the amount of any escrow deposits, or interest rates?

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  • How can the intermediary broker advise the seller or the buyer on things such as the value of the property, the amount of any escrow deposits, or interest rates?

When the listing contract or buyer representation agreement has come into existence but no intermediary status yet exists, the broker (or salesperson) may advise the parties generally on these matters. Once the intermediary status has been created, the intermediary broker may not express opinions or give advice during negotiations. Information about matters which do not constitute an opinion or advice may be supplied in response to a question from the client. For example, the intermediary could tell the buyer what the prevailing interest rate is without expressing an opinion or giving advice. The seller’s question about the amount of earnest money could be answered with a factual statement that, in the broker’s experience, the amount of earnest money that is usually seen in transactions depends upon the amount of the sales price and could give examples of those figures. If the buyer asks what amount should be in the offer, the intermediary could respond with another factual statement that, in the broker’s experience, those offers closest to the listing price tend to get accepted by the seller. These same rules would apply to a salesperson acting as an intermediary without appointments made by the intermediary broker. If appointments have been made following the procedures in the license act, then the appointed salesperson may provide opinions and advice during negotiations to the party to whom the salesperson is appointed.

Source: Tar

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