TREC Ethics and Professional Conduct Flashcards
6 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 6 TREC Ethics and Professional Conduct flashcards as text
Under the Texas Real Estate License Act, what is the primary duty of a licensee acting as an intermediary?
Answer: To facilitate the transaction while treating both parties fairly and honestly
An intermediary must treat both parties fairly and honestly and may not disclose confidential information of either party without consent.
A Texas licensee must disclose their license status when:
Answer: Whenever they are buying or selling property on their own behalf
TREC rules require licensees to disclose their license status in writing whenever they purchase, sell, or lease property for their own account.
What does the Texas Real Estate License Act prohibit regarding 'net listings'?
Answer: They are prohibited because they create a conflict of interest
Net listings are prohibited in Texas because they create a conflict of interest where the broker profits more by obtaining a higher price, regardless of the seller's needs.
A licensee who discovers a property has an undisclosed material defect is required to:
Answer: Disclose it to the buyer regardless of the seller's wishes
Texas licensees have a duty to disclose known material defects to buyers even if doing so is contrary to the seller's instructions.
Under TREC rules, commingling refers to:
Answer: Mixing client funds with the broker's personal or business funds
Commingling is the illegal practice of mixing client trust funds with a broker's personal or business operating funds.
What is 'conversion' in the context of TREC ethics?
Answer: The unauthorized use of client funds by a licensee for personal purposes
Conversion is the illegal act of a licensee using client trust funds for their own personal benefit, and it is grounds for license revocation.