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Agency Relationships and Disclosure Flashcards

7 cards from real TREC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Agency Relationships and Disclosure flashcards as text

  1. Under TRELA, which of the following is a fiduciary duty owed by a buyer's agent to the buyer?

    Answer: Placing the buyer's interests above those of the agent and all other parties

    A fiduciary duty of loyalty requires the buyer's agent to place the buyer's interests above those of the agent and all other parties to the transaction.

  2. The Texas Consumer Notice (Information About Brokerage Services) must be:

    Answer: Displayed in a license holder's place of business and included in advertising

    TREC requires that the IABS notice be prominently displayed in the license holder's place of business and be included in advertising in certain formats, in addition to being provided at first substantive dialogue.

  3. An appointed license holder working under an intermediary broker may NOT:

    Answer: Disclose confidential information of one party to the other

    An appointed license holder under an intermediary relationship must keep each party's confidential information private and cannot share it with the other party or the other appointed agent.

  4. What is the primary purpose of the agency disclosure requirement in Texas real estate transactions?

    Answer: To ensure consumers understand who the license holder represents and the duties owed

    The primary purpose of agency disclosure is consumer protection — ensuring buyers and sellers understand the agency relationship, who the agent represents, and what duties are owed to them.

  5. A listing broker who represents the seller and also shows the property to an unrepresented buyer is acting in what capacity under Texas law?

    Answer: Seller's agent only, with duties of honesty to the buyer

    Without written intermediary consent, the listing broker continues to represent only the seller and owes the unrepresented buyer honesty but not fiduciary duties.

  6. Under TRELA, how long must a broker retain records of completed real estate transactions, including agency disclosure forms?

    Answer: 5 years from the closing date

    Texas law requires brokers to retain records of completed transactions, including agency disclosures and contracts, for at least 4 years; however, TREC rules specify a minimum of 4 years, most commonly tested as within the 5-year range referenced in TREC rules §535.2.

  7. Which statement about single-party representation in Texas is CORRECT?

    Answer: A buyer's agent must place the buyer's interests above all other parties including their own

    In a single-party (buyer's) representation, the agent owes the buyer a fiduciary duty of loyalty, which includes placing the buyer's interests above those of all other parties, including the agent's own interests.