A seller's agent in Texas owes which duty to buyers?
Question & Answer
Review the question and all answer choices
Loyalty
Loyalty is a fiduciary duty owed exclusively to the seller (the agent's client) and cannot be extended to the buyer, as doing so would create a conflict of interest that undermines the seller's representation.
Confidentiality
Confidentiality is a fiduciary duty owed to the seller, meaning the agent must protect the seller's confidential information (such as their motivation to sell or their bottom-line price) and is not a duty owed to the buyer.
Honest dealing
Obedience
Obedience is a fiduciary duty requiring the agent to follow the lawful instructions of their principal (the seller), and it has no application to the buyer who is not the agent's client.
Why is this correct?
Under TRELA and TREC rules, a seller's agent owes fiduciary-level duties only to the seller, but is legally obligated to deal honestly with all parties, including buyers. This means the seller's agent cannot make material misrepresentations, conceal known defects that are not discoverable by the buyer, or engage in deceptive practices toward the buyer, even though the agent's primary loyalty is to the seller. Honest dealing is the one duty that crosses the client/non-client divide and applies universally in Texas real estate transactions.
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