Sales agent Lopez represents a seller and receives an offer that includes a request for seller financing. Lopez is unfamiliar with seller financing terms. What should Lopez do?
Correct Answer
A) Present the offer to the seller and recommend consulting with an attorney or financial advisor about the seller financing terms
Under the duty of reasonable care, Lopez must present all offers and recognize the limits of their expertise. When facing unfamiliar terms like seller financing, the agent should recommend the client consult with appropriate professionals.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
More Texas Agency Law Questions
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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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