Broker Reed has been representing Seller Grant for six months under a listing agreement. A buyer represented by another brokerage makes an offer at full asking price with no contingencies. Simultaneously, Reed's spouse contacts Reed expressing interest in purchasing the property at 5% above asking price. Under Texas law, what must Reed do?
Correct Answer
B) Present both offers to Grant and fully disclose the family relationship with the second offeror
Under TRELA, Reed must present all offers and fully disclose any personal interest or relationship. The duty of loyalty and disclosure requires Reed to inform Grant that the second offer comes from Reed's spouse, so Grant can make a fully informed decision.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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.
More Texas Agency Law Questions
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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?
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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