Question

What issues arose when the broker, in effect, appointed the listing agent to the seller and told the buyer that he would represent her interests rather than the seller's interest?

A) The broker violated his fiduciary duties to both clients.
B) The broker violated the intermediary laws set forth by TRELA.
C) The broker violated ethical and possibly legal rules and regulations.
D) All of the above.

Answer 1

When a broker appoints the listing agent to the seller and tells the buyer that they will represent her interests rather than the seller's interests, several issues arise. These include a violation of fiduciary duties, intermediary laws, and ethical and legal rules and regulations.

Step-by-step explanation:

The issues that arise when a broker appoints the listing agent to the seller and tells the buyer that he will represent her interests rather than the seller's interests are as follows:

1. The broker violated his fiduciary duties to both clients, as he is obligated to act in the best interests of both parties.
2. The broker violated the intermediary laws set forth by TRELA (Texas Real Estate License Act), which require disclosure and consent from both parties when acting as an intermediary.
3. The broker violated ethical and possibly legal rules and regulations, as he should not misrepresent his role and duty to the buyer.

Therefore, the correct answer is D) All of the above.