Under the Canons of Professional Ethics, a Texas license holder who represents a buyer discovers that the listing agent on a property is the seller's spouse. The listing agent has not disclosed this relationship. What should the buyer's agent do?
Correct Answer
B) The buyer's agent must inform the buyer of this relationship because it is material information that could affect the buyer's decisions
Under the Canons of Professional Ethics (TREC Rules §531.2), a license holder must inform the client of any material information regarding the transaction. The listing agent's spousal relationship with the seller is material because it could influence the objectivity of the listing agent and the negotiation dynamics.
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