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This is Texas Real Estate Agency 8th edition and the questions is related to text Chapter 1 and 2. An agent owes a fiduciary duty to clients and owes…

This is Texas Real Estate Agency 8th edition and the questions is related to text Chapter 1 and 2.   An agent owes a fiduciary duty to clients and owes fairness to a customer. A client is owed the duty of utmost good faith and fair dealing. The agent must know who the client is so that the client’s interests can be protected by the agent–the customer is to be treated fairly but is not entitled to the same level of service. Clients and customers are entitled information about broker’s services. 

    Jill is the sponsoring broker of Gary a licensed salesperson. Gary listed property owned by Dennis and put a sign on the property with Jill’s firm’s real estate office number. Kera called Gary to inquire about buying the property.

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    1. Describe Jill and Gary’s relationship by stating whether either is an agent or principal and what type of agency relationship exists if any.  

    2. Dennis agreed to a listing price of $130,000. While Dennis was out of town Gary received an offer to buy for the full listing price. Can Gary bind Dennis to the earnest money contract? Explain.

   3. Is Kera a customer, client or neither in relation to Gary? Is Dennis a customer, client or neither in relation to Gary?

   4. What actions should Gary take to fulfill his obligations to Dennis under the listing agreement?

   5. When Kera met Gary to see the property he gave her information concerning brokerage services as required by law. See the text page 59. Kera would like further explanation about what to expect from Gary. What should he tell her?

   6. Kera made an offer $35,000 below the $130,000 listing price. Gary discovered that she had made similar offers on three other houses that week. What should Gary do regarding the offer?

 

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