TREC TREC Ethics and Professional Conduct 3

Question 1

What is 'steering' as prohibited by Texas fair housing laws?

Accepted Answer

Directing buyers toward or away from neighborhoods based on protected class characteristics

Answer

Recommending a specific lender to a buyer

Answer

Advising a seller to list at a certain price

Answer

Referring clients to a preferred title company

Question 2

A licensee who represents both the buyer and seller in the same transaction without proper disclosure is guilty of:

Accepted Answer

Undisclosed dual agency, which is illegal in Texas

Answer

A minor procedural violation only

Answer

Acting as an intermediary, which is always permissible

Answer

Standard brokerage practice

Question 3

Under TREC rules, how long must a broker retain transaction records?

Accepted Answer

3 years

Answer

1 year

Answer

5 years

Answer

7 years

Question 4

If a client instructs a licensee to discriminate in a real estate transaction, the licensee should:

Accepted Answer

Refuse to comply and may terminate the relationship

Answer

Follow the client's instructions since the client is in charge

Answer

Report the client to local law enforcement immediately

Answer

Request written authorization from the client first

Question 5

What is 'blockbusting' in real estate?

Accepted Answer

Inducing homeowners to sell by suggesting that protected-class persons are moving into the area

Answer

Breaking up a large parcel into smaller lots

Answer

Assembling multiple parcels for redevelopment

Answer

Advertising a property in multiple languages

Question 6

A Texas licensee's failure to disclose a known latent defect to a buyer may result in:

Accepted Answer

Disciplinary action by TREC and potential civil liability

Answer

No consequences if the seller instructed non-disclosure

Answer

Only a written warning from TREC

Answer

Loss of commission but no license action