What does "undue influence" mean in real estate transactions?

"Undue influence" in real estate transactions refers to the use of one's position of power to sway a party's decision-making in a way that undermines their free will and genuine consent. This concept often involves scenarios where one party has a significant advantage over another, perhaps due to a relationship of trust or reliance, such as that between a caregiver and the person receiving care, or a financial advisor and their client.

In the context of real estate, undue influence can be particularly problematic because it can lead to transactions that do not reflect the true interests or intentions of the influenced party. For example, if a real estate agent, who is trusted by a client, pressures the client into making a decision that benefits the agent rather than the client, this would constitute undue influence. It undermines the customary principles of fairness and transparency that should govern real estate dealings.

In contrast, the other choices illustrate different concepts. Persuading a buyer to accept a below-market price or coercing a seller to lower their asking price typically involves negotiation tactics rather than undue influence. Offering incentives to close a deal quickly might be seen as a standard business practice but does not indicate the misuse of power characteristic of undue influence.