Is the following allowable: the seller instructs the broker not to hold an open house and to advertise in a national magazine only?

Is the following allowable: the seller instructs the broker not to hold an open house and to advertise in a national magazine only?

• A. Yes, the seller is responsible for planning all marketing of the property
• B. Yes, the broker works for the seller and must follow all legal instructions of the seller
• C. No, the broker has the right to hold the house open at his own discretion
• D. No, the owner cannot limit the broker's ability to earn a commission

Answer: (B)

In a seller–broker relationship, the seller (the principal) directs marketing, and the broker (the agent) must carry out lawful instructions from the seller. So telling the broker not to hold an open house and to advertise only in a national magazine is permissible if those instructions are legal and do not violate anti-discrimination or other real estate laws. The broker’s duties include obedience and loyalty to the seller, along with acting within licensed guidelines and ethical rules. This means the broker executes the seller’s marketing plan rather than unilaterally setting tactics. If the instructions ran afoul of fair housing laws or license requirements, the broker would need to refuse. The other options misstate the relationship: marketing decisions aren’t solely planned by the seller without the broker’s involvement, the broker isn’t free to act entirely at his own discretion, and a commission isn’t guaranteed by limiting marketing—the broker earns it by fulfilling the terms of the agreement and legal duties.

In a seller–broker relationship, the seller (the principal) directs marketing, and the broker (the agent) must carry out lawful instructions from the seller. So telling the broker not to hold an open house and to advertise only in a national magazine is permissible if those instructions are legal and do not violate anti-discrimination or other real estate laws. The broker’s duties include obedience and loyalty to the seller, along with acting within licensed guidelines and ethical rules. This means the broker executes the seller’s marketing plan rather than unilaterally setting tactics. If the instructions ran afoul of fair housing laws or license requirements, the broker would need to refuse. The other options misstate the relationship: marketing decisions aren’t solely planned by the seller without the broker’s involvement, the broker isn’t free to act entirely at his own discretion, and a commission isn’t guaranteed by limiting marketing—the broker earns it by fulfilling the terms of the agreement and legal duties.