Buyer agent Brooks discovers during due diligence that the property's boundary line encroaches 3 feet onto the neighbor's land based on a recent survey. The title company has not flagged this issue. Under the duty of reasonable care, what must Brooks do?
Correct Answer
A) Inform the buyer about the encroachment and recommend consulting with an attorney about the boundary issue
Under the duty of reasonable care and disclosure, Brooks must inform the buyer about the discovered encroachment. This is a material issue that could affect the property's value and use. Brooks should recommend legal consultation because boundary disputes are legal matters beyond a license holder's expertise.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
More Texas Agency Law Questions
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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?
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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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