Under common law, the duties agents owe to principals are known as fiduciary duties. In this assignment, you will read the following scenario and determine if the agent faithfully fulfilled the fiduciary duties owed to the principal in the transaction.
The following Course Outcome is assessed in this assignment:
MT432-4: Determine the legal commitments associated with agency relationships.
Scenario (fictional): Jowell is a new real estate agent working for the local broker Hometown Brokerage in your state. One of her first customers, Mrs. Murphy, came into the office, and Jowell sat down immediately and began to look up on the MLS for available properties Mrs. Murphy suggested she was searching for in her price range. Because Jowell was the listing agent for one of the properties she was going to show Mrs. Murphy, she also had Mrs. Murphy sign an agreement to have Jowell represent her interests in the transaction if Mrs. Murphy made an offer on her listing. They then left the office to go out and look at the first few properties.
Mrs. Murphy loved Jowell’s listing and thought it would be perfect for her and her family. Mrs. Murphy only wants to spend a maximum of $265,000 for the home. The seller, as Jowell knows, wants a minimum of $260,000 for the home but is asking $275,000. Mrs. Murphy asks Jowell to help her negotiate the lowest price possible for the property since they still have moving costs and furniture to purchase and have four children.
Checklist:
Explain the agency relationships between the seller and Jowell as their agent.
Explain the agency relationship between Jowell and Mrs. Murphy, her client.
Determine what step was omitted by Jowell at the beginning of the interaction with the client.
Determine the legal commitments Jowell has to the seller and the buyer in this transaction. Why?
Determine how Jowell should negotiate the price of the property based on those legal commitments. Explain.
Respond in a minimum of 400- to 600-word scenario case analysis with additional title and reference pages in cur