Broker Lewis acts as an intermediary without appointments between Seller Ortiz and Buyer Grant. Grant asks Lewis for advice on whether to increase the offer. Lewis tells Grant, 'The seller is highly motivated and will likely accept a lower offer.' What violation has Lewis committed?
Correct Answer
A) Lewis violated both the prohibition on giving price advice and the duty of confidentiality
Lewis committed two violations: (1) Under §1101.651(d), an intermediary without appointments is prohibited from giving opinions or advice on price negotiations; and (2) under §1101.561, sharing that the seller is 'highly motivated' breaches the duty of confidentiality owed to the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
More Texas Agency Law Questions
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In Texas, a sales agent who is assigned by the intermediary broker to communicate with and carry out instructions of one party in a transaction is known as a(n):
- → Which Texas law governs the licensing and regulation of real estate brokers and sales agents, including agency relationships?
- → A Texas license holder receives earnest money from a buyer. Under Texas law, the license holder must:
- → Under Texas law, which of the following BEST describes the relationship between a sales agent and their sponsoring broker?
- → The IABS form describes all of the following types of agency relationships available in Texas EXCEPT:
- → A Texas license holder is working at a property management company and negotiates a lease for a tenant. Must the license holder provide the IABS form to the prospective tenant?
- → Under TREC rules, the IABS form must be provided by whom?
- → Broker Martinez instructs all of her sales agents to include the IABS form as a standard attachment in every email communication. This practice is:
- → A Texas license holder posts a property listing on social media. A consumer comments on the post asking about the property's price. The license holder responds with the price and additional details. Was the IABS required?
- → In Texas, commingling occurs when a license holder:
- → Sales agent Kim provides the IABS form to Buyer Patel at their first meeting. During the meeting, Kim explains that she represents the seller. Patel asks Kim to also represent him as a buyer. Kim agrees but does not have Patel sign a buyer representation agreement. Later, a dispute arises and Patel claims Kim was his buyer's agent. What is the most likely outcome?
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Seller Barnes signs a listing agreement with Broker Kane that includes intermediary authorization. Two months later, one of Kane's buyer clients wants to purchase Barnes' property. Which statement is correct?
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Under Texas law, which of the following is NOT a statutory duty that a license holder owes to ALL parties in a real estate transaction, regardless of whom they represent?