Hailey Dunfee, a 29 year old single woman, was looking to purchase a home in the Hyde Park neighborhood of Austin. She found a perfect home at 1313 Ave D which was listed for sale at $725,000. The seller was Jay Prufrock, and the listing real estate broker was Gloria Ramirez.

Hailey decided that she wanted to make an offer to purchase the home. She signed an earnest money contract that offered Jay $735,000 for the home. Hailey specified that the offer would expire within 24 hours. Gloria received the offer and immediately begin trying to contact Jay. Unfortunately, Jay had gone of an African safari vacation and was not reachable for 72 hours (no wifi or cell service). Gloria, as Jay's broker, signed the contract. She signed the contract for Jay, signing, "Gloria Ramirez for Jay Prufrock." When Jay found out about the contract he maintained that Gloria had no legal right to sign the contract for him. Jay is:

2. Correct because the listing contract (broker agency agreement) does not give the real estate broker the power to sign the contract of sale (earnest money contract) for the seller.
4. Correct because agents never have the power to sign contracts for their principals.
6. Incorrect because the offer was more than the list price so Jay had to accept the offer.
8. Incorrect because Gloria disclosed that she was signing in her agency capacity for her principal.
10. 
    

Answer rating: 100% (QA)

Answer The correct answer is b Correct because agents never have the power to sign contracts for the... View the full answer