Buyer agent Mitchell represents Buyer Yang under a written buyer representation agreement. During a property showing, the listing agent tells Mitchell that the seller received another offer. Mitchell does NOT relay this information to Yang. Has Mitchell violated any duty?
Correct Answer
C) Yes, Mitchell has a fiduciary duty to inform Yang of all information that could affect the transaction
As Yang's buyer's agent, Mitchell owes fiduciary duties including informing the client of all information that could affect the transaction. The existence of a competing offer is material information that could influence Yang's negotiation strategy and must be disclosed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
More Texas Agency Law Questions
A Texas license holder represents a landlord and is leasing commercial office space. The license holder shows the space to a prospective tenant from a large corporation. The corporate tenant has its own tenant representation broker. Must the landlord's license holder provide the IABS to the tenant?
A Texas license holder provides the IABS form to a buyer at their first meeting. Two weeks later, the buyer contacts the license holder about a different property. Must the license holder provide the IABS again?
A married couple visits an open house together. Sales agent Foster provides the IABS to the wife but not the husband. If both spouses are interested in purchasing the property, has Foster satisfied the IABS requirement?
Agent Parker provides the IABS to Buyer Harris at the first showing. Later, Harris signs a buyer representation agreement with a completely different brokerage firm. When Harris contacts Parker about another property, Parker's firm still has a listing on, must Parker provide the IABS again?
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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- → 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:
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- → 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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