Seller Moore lists a property with Broker Adams. The listing agreement does NOT include intermediary authorization. Later, Adams' sales agent brings a buyer client who wants to purchase Moore's property. What must Adams do?
Correct Answer
A) Amend the listing agreement to add intermediary authorization before proceeding
Under Texas Occupations Code §1101.559, intermediary authorization must be included in the representation agreements. Since the listing agreement lacks this authorization, Adams must amend it to add the provision and obtain written consent from both parties before acting as an intermediary.
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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.
More Texas Agency Law Questions
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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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Under Texas law, a broker who represents only the seller in a transaction and cooperates with a buyer's agent from another firm is operating under which agency arrangement?
Next Question
Broker Franklin's firm operates in Texas with 30 sales agents. Franklin requires all listing agreements to include intermediary authorization. In a particular transaction, Franklin appoints Agent Ross to Seller Kim and Agent Blake to Buyer Torres. During contract negotiations, Buyer Torres tells Agent Blake that he will walk away unless the price drops by $20,000. Blake relays this to Broker Franklin. What should Franklin do?