Broker Clark acts as an intermediary with appointments. Appointed license holder Evans (representing the buyer) learns the property's appraisal came in $30,000 below the contract price. Evans mentions this to appointed license holder Mills (representing the seller) during a casual office conversation. What is the consequence?
Correct Answer
B) Evans violated the duty of confidentiality and may face TREC disciplinary action
Under Texas Occupations Code §1101.561, appointed license holders must maintain confidentiality of information received from their appointed party. The buyer's appraisal information is confidential because it affects negotiation leverage. Sharing this subjects Evans to TREC disciplinary action under §1101.652.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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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):
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- → Under Texas law, which of the following BEST describes the relationship between a sales agent and their sponsoring broker?
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In Texas, the term used to describe a broker who represents both the buyer and seller in the same transaction with written consent is:
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