Agency
When a Texas buyer's agent discovers that the home they are helping their client purchase has a foundation problem not disclosed by the seller, the agent should:
AComplete the transaction without mentioning the problem
BImmediately inform the buyer client and advise them to consult a structural engineer and consider their options under the contract✓ Correct
CInform only the seller's agent and let them handle it
DWalk away from the transaction without advising the buyer
Explanation
A buyer's agent has a duty to protect the buyer's interests by disclosing known material facts. Upon discovering an apparent foundation problem, the agent must immediately inform the buyer and advise them to consult a structural engineer for a professional evaluation. The buyer can then make an informed decision about whether to proceed, renegotiate, or terminate.
Related Texas Agency Questions
- A Texas real estate agent discovers a material defect in a property they are listing. They must:
- Which of the following must a Texas seller's agent disclose to a buyer regarding the property?
- When a Texas broker acts as an intermediary, they may NOT:
- A Texas listing agreement grants the broker 'exclusive right to sell.' This means if the seller's neighbor sees a For Sale sign and directly offers to buy the property:
- In Texas, 'ostensible agency' (or apparent authority) exists when:
- In Texas, the duty of 'reasonable care and diligence' in an agency relationship requires the agent to:
- A Texas buyer's agent who has actual knowledge that a listed property has foundation issues the seller has not disclosed is obligated to:
- When a Texas broker acts as an intermediary, they are generally prohibited from:
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