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?
Correct Answer
D) Keep the information confidential and allow Blake to negotiate on behalf of Torres
The intermediary broker must maintain confidentiality of information received from either party's appointed license holder. The buyer's willingness to walk away is confidential negotiation strategy that Franklin must not share with the seller's side. Blake should continue to negotiate on Torres' behalf as the appointed license holder.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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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?
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Under TRELA, what written document must a Texas license holder provide before entering into a buyer representation agreement?