TREC TREC Ethics and Professional Conduct 2

Question 1

A licensee may share a commission with an unlicensed person:

Accepted Answer

Under no circumstances — only licensed individuals may receive commission

Answer

If the unlicensed person referred a client

Answer

If the broker approves in writing

Answer

Only if the amount is under $500

Question 2

When must a Texas licensee provide the 'Information About Brokerage Services' (IABS) notice?

Accepted Answer

At the first substantive dialogue about a specific property

Answer

Only at closing

Answer

Only when the client signs a representation agreement

Answer

Only for commercial transactions

Question 3

What action should a listing agent take if a buyer's agent submits an offer that includes a material misrepresentation?

Accepted Answer

Refuse to submit the offer and report the issue to the appropriate party

Answer

Ignore it and submit to the seller anyway

Answer

Accept it on the seller's behalf

Answer

Counter the offer without informing the seller

Question 4

Under Texas law, a salesperson may receive compensation for real estate services only from:

Accepted Answer

Their sponsoring broker

Answer

The client directly

Answer

The title company

Answer

Either the client or the broker

Question 5

The concept of 'fiduciary duty' in real estate means a licensee must:

Accepted Answer

Put the client's interests above their own

Answer

Always get the highest commission possible

Answer

Disclose all offers to both parties simultaneously

Answer

Recommend only properties listed by their brokerage

Question 6

If a Texas licensee has a personal financial interest in a property they are selling on behalf of a client, they must:

Accepted Answer

Disclose that interest in writing to all parties

Answer

Withdraw from the transaction immediately

Answer

Obtain TREC approval before proceeding

Answer

Only disclose if the interest exceeds 10%