Texas Real Estate Sales Agent ExamAgencyEasy
A real estate sales agent is acting as a seller's agent. A buyer, unrepresented by an agent, expresses interest in the property. The buyer asks the seller's agent for advice on how much to offer to get the best deal. What is the seller's agent's appropriate response?
- AAdvise the buyer on a competitive offer range, as the buyer is unrepresented.
- BTell the buyer that the seller is highly motivated and will accept a low offer.
- CProvide the buyer with a comparative market analysis (CMA) to help them decide.
- DSuggest the buyer seek their own representation or provide information on how to make an offer without advice.
Show answer & explanationAnswer & explanation
Correct answer: D. Suggest the buyer seek their own representation or provide information on how to make an offer without advice.
The seller's agent has a fiduciary duty of loyalty to the seller. Providing advice to an unrepresented buyer on how much to offer would violate this duty by potentially harming the seller's interests. The agent should remain neutral and suggest the buyer seek independent advice or proceed without it.
Why the other options are wrong
- A. This violates the duty of loyalty to the seller.
- B. This violates the duty of loyalty and confidentiality to the seller.
- C. Providing a CMA to an unrepresented buyer could be interpreted as giving advice, which would be a breach of loyalty to the seller.
Representing One Party
An agency relationship where the real estate agent owes fiduciary duties exclusively to either the buyer or the seller, not both.
- Agent acts solely in the best interest of their client.
- Must not give advice to the unrepresented party.
- Required to treat the unrepresented party honestly and fairly.
Memory trick: An agent's loyalty is a shield, protecting only their client.