Broker Reed's firm has two offices in Houston. Sales agent Liu in Office A has a listing. Sales agent Chen in Office B has a buyer client interested in Liu's listing. Reed acts as intermediary and appoints Liu to the seller and Chen to the buyer. During the transaction, Chen learns the buyer plans to convert the property to a rental. Should Chen share this with Liu?
Correct Answer
C) No, because the buyer's intended use is confidential information under the intermediary arrangement
Under Texas Occupations Code §1101.561, in an intermediary arrangement with appointments, the buyer's future plans for the property are confidential information. Chen must not share this with Liu or the seller's side.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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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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