Buyer agent Adams has a client who wants to make an offer on a property. Adams knows that the listing agent is a close personal friend. Adams has no financial interest in the transaction beyond the normal commission. Under the duty of loyalty, what must Adams do?
Correct Answer
C) Proceed with the offer but disclose the personal friendship to the buyer client
Under the duty of loyalty, Adams must disclose any personal relationships that could be perceived as affecting objectivity. The personal friendship with the listing agent should be disclosed so the buyer can make an informed decision about proceeding.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
More Texas Agency Law Questions
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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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