In representing a seller, brokers, as special agents, cannot do which of the following?

In real estate transactions, brokers act as special agents for their clients, which means they have limited authority. The correct answer indicates that brokers cannot bind their principal to a real estate contract. This limitation is fundamental to the role of a special agent. While they can negotiate terms, receive earnest money, and prepare listing agreements, they do not have the authority to finalize deals or make binding commitments on behalf of the seller without the seller's explicit authorization.

The distinction lies in the nature of agency relationships. A principal maintains ultimate control over the decision-making process when dealing with contracts, ensuring that their interests are protected. This means that while brokers can facilitate negotiations and advise their clients, the final decision to enter into a contract must always reside with the seller. This preserves the seller’s rights and ensures they are fully informed and in agreement before any legally binding documents are signed.