TREC Agency Relationships and Disclosure

Question 1

Under TREC rules, when must a real estate license holder provide the Information About Brokerage Services (IABS) notice to a prospective buyer or tenant?

Accepted Answer

At the first substantive dialogue about a specific property

Answer

Only after a written contract is signed

Answer

Only when the client requests it in writing

Answer

At the time of closing

Question 2

Which of the following best describes an 'intermediary' under the Texas Real Estate License Act (TRELA)?

Accepted Answer

A broker who represents both parties in the same transaction with written consent

Answer

A broker who represents neither buyer nor seller

Answer

An unlicensed assistant who facilitates closings

Answer

A title company officer who mediates disputes

Question 3

A Texas real estate broker may act as an intermediary only if:

Accepted Answer

The broker has written consent from both the buyer and the seller

Answer

The broker obtains verbal consent from both parties

Answer

Both clients sign separate representation agreements with different agents

Answer

The Texas Real Estate Commission approves the transaction in advance

Question 4

When a license holder represents the seller in a transaction, what duty does the license holder owe to an unrepresented buyer?

Accepted Answer

Only the duty to disclose known material defects and treat them honestly

Answer

Full fiduciary duty including loyalty and confidentiality

Answer

No duty whatsoever since they represent only the seller

Answer

The same duties owed to the seller under the agency agreement

Question 5

Under Texas law, a 'subagent' is best defined as:

Accepted Answer

A license holder who acts for the principal through the principal's agent

Answer

A license holder employed directly by the buyer

Answer

A license holder who is sponsored by the listing broker's competitor

Answer

An unlicensed assistant supervised by a licensed salesperson

Question 6

Which form must a Texas broker use to authorize an appointed license holder to represent a buyer when the broker is acting as an intermediary?

Accepted Answer

An intermediary appointment notice within the written consent agreement

Answer

TREC Form 1-4 (One to Four Family Residential Contract)

Answer

TREC Form OP-C (Notice to Prospective Buyer)

Answer

A separate subagency authorization approved by TREC

Question 7

A Texas sales agent can enter into an agency agreement with a client only through:

Accepted Answer

The sales agent's sponsoring broker

Answer

Their own authority as a licensed agent

Answer

The Texas Real Estate Commission directly

Answer

A written independent contractor agreement