TREC Agency Relationships and Disclosure 2

Question 1

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

Accepted Answer

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

Answer

Disclosing the buyer's maximum price willingness to the seller

Answer

Informing the listing broker of any competing offers the buyer may make

Answer

Recommending that the buyer always offer the full listing price

Question 2

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

Accepted Answer

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

Answer

Filed with TREC within 10 days of first client contact

Answer

Provided only to commercial real estate clients

Answer

Signed by the client before any property showing

Question 3

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

Accepted Answer

Disclose confidential information of one party to the other

Answer

Negotiate price on behalf of their appointed party

Answer

Show the property to their appointed party

Answer

Advise their appointed party on inspection issues

Question 4

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

Accepted Answer

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

Answer

To limit the number of agents involved in a single transaction

Answer

To require all parties to use the same brokerage firm

Answer

To authorize TREC to mediate commission disputes between brokers

Question 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?

Accepted Answer

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

Answer

Buyer's agent by implied agency

Answer

Intermediary without written consent

Answer

A dual agent with full fiduciary duties to both parties

Question 6

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

Accepted Answer

5 years from the closing date

Answer

1 year from the closing date

Answer

3 years from the closing date

Answer

7 years from the closing date

Question 7

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

Accepted Answer

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

Answer

A broker may represent both parties without any written disclosure if both verbally agree

Answer

A seller's agent owes the buyer loyalty and confidentiality as well as honesty

Answer

Single agency is only permitted in commercial transactions under TRELA