Agent required to disclose family relationship to clients in dual agency?

Status: Open
Apr 05, 2018 Views3,225 Answer a Question

Was under contract (10 year lease option) last week on a commercial property. Realtor was representing both the seller and myself (dual agency). A few days later, I was asked to sign a mutual release so the seller could pursue a better cash offer received while under contract. Was nearly guilted into it with agent explaining the seller's age, health, retirement plans, concerns about being able to travel with his wife, etc. were all reasons why he wants the cash offer instead. AFTER this, I found out myself that the seller was the agent's father-in-law!! That was never once disclosed to me until I asked him about it once I found out. They then found a loophole in the contract (long story) and terminated the agreement just this Monday. I haven't signed anything yet. Is this right?

Asked by
Consumer
Categories:
Home Buying
Imrana Hamdi
About 6 years ago
Mr.Parker,
The answers below are simply suggesting on Residential contracts ,however this is a case of Commercial Property in subject. Nevertheless my answer would still be to consult an attorney even though the Father in Law is not the same as a Child,Parent,spouse however you must seek an advise from an Attorney Practicing in Texas.

Thanks for reading
Imrana
A licensed Real Estate advisor and Prevention specialist
7654909206
ihamdi@kw.com
Purvi Shah
About 6 years ago
For residential resale contract, realtors have to disclose family relationship....commercial contracts vary, are not promulgated by TREC and drafted by attorneys....as all other agents suggested, hire an attorney who can help. Best luck
Ryan Kohn
About 6 years ago
Hey Joseph,
I would agree, Veronica has given the only we are allowed to provide. In a residential contract, there is a required disclosure for parent, sibling, spouse or child. I personally would include step parents but would contact TREC if considering weather or not it would be legally required. There is no specified disclosure within the TAR 2101 Commercial Lease, that does not necessarily mean it is not required, however rules and regulations for Commercial will vary considerably compared to Residential.
I would highly recommend seeking the advice of an attorney, Allan Davis is my primary referral. 713-816-4695 or adavis@adavislaw.com.

I would also Strongly recommend you form a relationship with a competent Commercial Agent for future needs. Kevin O'Hara at O'Hara and Company Real Estate 281-373-3393 (Full disclosure, no relation but he is my supervising broker.)
Pamela Bratcher
About 6 years ago
Joseph, Veronica gave a great answer. Realtors aren't allowed to give legal advise. A real estate attorney would be able to help you, so you would have to decide if it is worth the expense. I wish you the best, and hope you're able to find a solution.
Pam Bratcher
HelpUBuy America
Veronica Mullenix
About 6 years ago
Realtors are prohibited from providing legal advice or opinions; however, I strongly suggest you consult with an attorney and present your contract and file documents to your attorney for review. Only a practicing attorney of your choice can render a legal opinion for you based on the contract that was in place and the actions of the parties. In the Texas Residential Purchase Contract paragraph 4 does state the disclosure of relationship if the party to the transaction is a spouse, parent or child of the agent. I do not know if sure a disclosure paragraph is in the contract you signed. I hope this helps you.
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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