Listing agent Torres presents an offer to Seller Garcia. Garcia asks Torres, 'Should I accept this offer?' Torres responds, 'You should consult with your attorney.' Has Torres fulfilled the fiduciary duty?
Correct Answer
A) No, because Torres owes a duty to provide opinions and advice to the client, not just attorney referrals
Under the fiduciary duty, a listing agent owes the client opinions and advice on matters within the agent's expertise. While attorney referrals are appropriate for legal questions, Torres should also provide professional opinions on the offer's merits, market conditions, and comparable sales.
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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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