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

A fiduciary duty of loyalty requires the buyer's agent to place the buyer's interests above those of the agent and all other parties to the transaction.

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

TREC requires that the IABS notice be prominently displayed in the license holder's place of business and be included in advertising in certain formats, in addition to being provided at first substantive dialogue.

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

An appointed license holder under an intermediary relationship must keep each party's confidential information private and cannot share it with the other party or the other appointed agent.

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

The primary purpose of agency disclosure is consumer protection — ensuring buyers and sellers understand the agency relationship, who the agent represents, and what duties are owed to them.

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

Without written intermediary consent, the listing broker continues to represent only the seller and owes the unrepresented buyer honesty but not fiduciary duties.

TREC - Texas Real Estate Commission Practice Test

TREC - Texas Real Estate Commission Practice Test

TREC Agency Relationships and Disclosure 2