Listing agent Quinn discovers during a showing that the foundation has settled, causing cracks in the interior walls. The seller insists the cracks are merely cosmetic. Under Texas law, what is Quinn's obligation?
Correct Answer
D) Recommend the buyer obtain a structural inspection and disclose the observed cracks as potential material defects
Under Texas law, Quinn has a duty to disclose known material facts. Observable foundation settlement and wall cracks are potentially material defects. Quinn should recommend a structural inspection and disclose the issue regardless of the seller's characterization.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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:
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