Sales agent Lee provides the IABS form to a buyer and then enters into a buyer representation agreement. The buyer later alleges that Lee failed to explain the intermediary section of the IABS and did not understand the implications. Lee claims the form was delivered. What is the most likely outcome if the dispute reaches TREC?
Correct Answer
B) Lee is protected because the obligation is to deliver the IABS, not to explain each section
Under TREC rules, the license holder's obligation is to provide the IABS form to the consumer. The form itself contains the necessary information. There is no specific requirement to verbally explain each section of the IABS.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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.
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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?
Next Question
A Texas license holder attends a real estate investment seminar and meets several investors interested in purchasing properties. During the seminar, the license holder discusses specific available properties. To how many attendees must the IABS be provided?