Broker Anna has helped her client negotiate the purchase of a single family home. The week before close, the sellers back out of the sale without any explanation. The clients have all the options below EXCEPT:

• A. TREC handles disputes between buyers and sellers.
• B. Mediation with the seller's agent.
• C. Filing a civil suit for damages.
• D. TREC does not handle disputes between buyers and sellers.

Answer: (D)

When a seller backs out before closing, the buyer has several ways to pursue resolution: seeking a negotiated settlement or mediation to resolve the dispute, filing a civil lawsuit to recover damages for breach of contract, or pursuing a complaint with the licensing authority if a licensee’s conduct contributed to the problem. The licensing body’s role is to regulate and discipline licensees, not to serve as the forum for private contract disputes between buyers and sellers. Therefore, saying that the licensing authority handles disputes between buyers and sellers is not a valid remedy in this context. Mediation with the seller’s agent and a civil suit for damages are legitimate avenues, and a complaint to the licensing board would only apply if a licensee’s actions are involved. Hence, the statement about the licensing authority handling such disputes is the exception.