Broker Henderson acts as an intermediary with appointments in a $500,000 residential sale. Appointed license holder Knox (seller's side) accidentally overhears appointed license holder Webb (buyer's side) discussing the buyer's maximum budget of $520,000 on a phone call in the office. What should Knox do?
Correct Answer
D) Treat the overheard information as confidential and not share it with the seller or anyone else
Under Texas Occupations Code §1101.561, appointed license holders must maintain confidentiality barriers. Even if Knox inadvertently learns the buyer's confidential information, Knox has a duty not to use or share that information. The ethical obligation is to treat the information as if it was never heard.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Texas Agency Law Question
Background Knowledge for Texas Agency Law
Real World Application in Texas Agency Law
Common Mistakes to Avoid on Texas Agency Law Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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):
- → 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?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Previous Question
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?
Next Question
Which Texas law governs the licensing and regulation of real estate brokers and sales agents, including agency relationships?