Texas Real Estate Exam Questions with Correct Answers 100% Verified By Experts| Latest
Update Guaranteed Success
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 1 When representing a buyer, seller, landlord, tenant, or other client as an agent,
Realtors® pledge themselves to protect and promote the interests of their client.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 2 Realtors® shall avoid exaggeration, misrepresentation, or concealment of pertinent
facts relating to the property or the transaction. Realtors® shall not, however, be obligated to
discover latent defects in the property, to advise on matters outside the scope of their real
estate license, or to disclose facts
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 3 Realtors® shall cooperate with other brokers except when cooperation is not in the
client's best interest. The obligation to cooperate does not include the obligation to share
commissions, fees, or to otherwise compensate another broker.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 4 Realtors® shall not acquire an interest in or buy or present offers from themselves,
any member of their immediate families, their firms or any member thereof, or any entities in
which they have any ownership interest, any real property without making their true position
known to the owner or the owner's agent or broker.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 5 Realtors® shall not undertake to provide professional services concerning a
property or its value where they have a present or contemplated interest unless such interest is
specifically disclosed to all affected parties.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 6 Realtors® shall not accept any commission, rebate, or profit on expenditures made
for their client, without the client's knowledge and consent. When recommending real estate
,products or services Realtors® shall disclose to the client or customer to whom the
recommendation is made any financial benefits or fees, other than real estate referral fees, the
Realtor® or Realtor®'s firm may receive as a direct result of such recommendation.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 7 In a transaction, Realtors® shall not accept compensation from more than one
party, even if permitted by law, without disclosure to all parties and the informed consent of
the Realtor®'s client or clients.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 8 Realtors® shall keep a special account in an appropriate financial institution,
separated from their own funds, monies coming into their possession in trust for other persons,
such as escrows, trust funds, clients' monies, and other like items.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 9 Realtors®, for the protection of all parties, shall assure whenever possible that all
agreements related to real estate transactions including, but not limited to, listing and
representation agreements, purchase contracts, and leases are in writing in clear and
understandable language expressing the specific terms, conditions, obligations and
commitments of the parties. A copy of each agreement shall be furnished to each party to such
agreements upon their signing or initialing.
National Association of Realtors® Code of Ethics
Realtor® Duties to the Public
Privacy / Do Not Contact The "No Call Lists" compiled and administered by the Public
Utilities Commission apply to companies that are trying to "sell" a consumer good or service
over the telephone.
Note: Generally, the prohibition against calling takes effect immediately upon notice from the
client that they no longer desire to be contacted by the agent.
Brief History of TRELA Originating as the Texas Real Estate Dealers Act of 1939 and revised in
1949 to create the Texas Real Estate Commission (TREC), legislative amendments to the act in
,1955 added licensing duties and changed the name of the act to The Real Estate License Act.
This is the guiding authority to the engagement in the real estate profession in Texas today,
with TREC as the governing body overseeing the professional activities.
TREC is the agency in charge of overseeing the licensing and professional activities of:
Real estate brokers
Real estate sales agents
Real estate inspectors
Providers of real estate and inspection education courses
Residential service companies
Timeshare developers
Easement or Right-of-Way (ERW) Agents
Subchapter A. General Provisions
This chapter may be cited as The Real Estate License Act. (1) "Broker":
(a) means a person who, in exchange for a commission or other valuable consideration or with
the expectation of receiving a commission or other valuable consideration, performs for
another person
(B) includes a person who: is employed by or for an owner of real estate to sell any portion of
the real estate. Engages in the business of charging an advance fee or contracting to collect a
fee under a contract that requires the person primarily to promote the sale of real estate
(1-a) "Business entity" means a "domestic entity" or "foreign entity" as those terms are defined
by Section 1.002, Business Organizations Code, that is qualified to transact business in this
state.
(2) "Certificate holder" means a person registered under Subchapter K.
(3) "Commission" means the Texas Real Estate Commission.
(4) "License holder" means a broker or sales agent licensed under this chapter.
(5) "Real estate" means any interest in real property, including a leasehold, located in or
outside this state. The term does not include an interest given as security for the performance
of an obligation.
, (6) "Residential rental locator" means a person who offers for consideration to locate a unit in
an apartment complex for lease to a prospective tenant. The term does not include an owner
who offers to locate a unit in the owner's complex.
(7) "Sales agent" means a person who is sponsored by a licensed broker for the purpose of
performing an act described by Subdivision (1).
(8) "Subagent" means a license holder
Subchapter A. General Provisions
Sec. 1101.005. Applicability Of Chapter.
This chapter does not apply to: (1) an attorney licensed in this state;
(2) an attorney-in-fact authorized under a power of attorney to conduct not more than three
real estate transactions annually;
(3) a public official while engaged in official duties;
(4) an auctioneer licensed under Chapter 1802 while conducting the sale of real estate by
auction if the auctioneer does not perform another act of a broker;
(5) a person conducting a real estate transaction under a court order or the authority of a will
or written trust instrument;
(6) a person employed by an owner in the sale of structures and land on which structures are
located if the structures are erected by the owner in the course of the owner's business;
(7) an on-site manager of an apartment complex;
(8) an owner or the owner's employee who leases the owner's improved or unimproved real
estate; or
(9) a transaction involving:
(A) the sale, lease, or transfer of a mineral or mining interest in real property;
(B) the sale, lease, or transfer of a cemetery lot;
(C) the lease or management of a hotel or motel; or
the sale of real property under a power of sale conferred by a deed of trust or other contract
lien.
Subchapter B. Texas Real Estate Commission
Update Guaranteed Success
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 1 When representing a buyer, seller, landlord, tenant, or other client as an agent,
Realtors® pledge themselves to protect and promote the interests of their client.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 2 Realtors® shall avoid exaggeration, misrepresentation, or concealment of pertinent
facts relating to the property or the transaction. Realtors® shall not, however, be obligated to
discover latent defects in the property, to advise on matters outside the scope of their real
estate license, or to disclose facts
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 3 Realtors® shall cooperate with other brokers except when cooperation is not in the
client's best interest. The obligation to cooperate does not include the obligation to share
commissions, fees, or to otherwise compensate another broker.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 4 Realtors® shall not acquire an interest in or buy or present offers from themselves,
any member of their immediate families, their firms or any member thereof, or any entities in
which they have any ownership interest, any real property without making their true position
known to the owner or the owner's agent or broker.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 5 Realtors® shall not undertake to provide professional services concerning a
property or its value where they have a present or contemplated interest unless such interest is
specifically disclosed to all affected parties.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 6 Realtors® shall not accept any commission, rebate, or profit on expenditures made
for their client, without the client's knowledge and consent. When recommending real estate
,products or services Realtors® shall disclose to the client or customer to whom the
recommendation is made any financial benefits or fees, other than real estate referral fees, the
Realtor® or Realtor®'s firm may receive as a direct result of such recommendation.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 7 In a transaction, Realtors® shall not accept compensation from more than one
party, even if permitted by law, without disclosure to all parties and the informed consent of
the Realtor®'s client or clients.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 8 Realtors® shall keep a special account in an appropriate financial institution,
separated from their own funds, monies coming into their possession in trust for other persons,
such as escrows, trust funds, clients' monies, and other like items.
Selections from the NAR® Code of Ethics - Duties to Clients and Customers
Article 9 Realtors®, for the protection of all parties, shall assure whenever possible that all
agreements related to real estate transactions including, but not limited to, listing and
representation agreements, purchase contracts, and leases are in writing in clear and
understandable language expressing the specific terms, conditions, obligations and
commitments of the parties. A copy of each agreement shall be furnished to each party to such
agreements upon their signing or initialing.
National Association of Realtors® Code of Ethics
Realtor® Duties to the Public
Privacy / Do Not Contact The "No Call Lists" compiled and administered by the Public
Utilities Commission apply to companies that are trying to "sell" a consumer good or service
over the telephone.
Note: Generally, the prohibition against calling takes effect immediately upon notice from the
client that they no longer desire to be contacted by the agent.
Brief History of TRELA Originating as the Texas Real Estate Dealers Act of 1939 and revised in
1949 to create the Texas Real Estate Commission (TREC), legislative amendments to the act in
,1955 added licensing duties and changed the name of the act to The Real Estate License Act.
This is the guiding authority to the engagement in the real estate profession in Texas today,
with TREC as the governing body overseeing the professional activities.
TREC is the agency in charge of overseeing the licensing and professional activities of:
Real estate brokers
Real estate sales agents
Real estate inspectors
Providers of real estate and inspection education courses
Residential service companies
Timeshare developers
Easement or Right-of-Way (ERW) Agents
Subchapter A. General Provisions
This chapter may be cited as The Real Estate License Act. (1) "Broker":
(a) means a person who, in exchange for a commission or other valuable consideration or with
the expectation of receiving a commission or other valuable consideration, performs for
another person
(B) includes a person who: is employed by or for an owner of real estate to sell any portion of
the real estate. Engages in the business of charging an advance fee or contracting to collect a
fee under a contract that requires the person primarily to promote the sale of real estate
(1-a) "Business entity" means a "domestic entity" or "foreign entity" as those terms are defined
by Section 1.002, Business Organizations Code, that is qualified to transact business in this
state.
(2) "Certificate holder" means a person registered under Subchapter K.
(3) "Commission" means the Texas Real Estate Commission.
(4) "License holder" means a broker or sales agent licensed under this chapter.
(5) "Real estate" means any interest in real property, including a leasehold, located in or
outside this state. The term does not include an interest given as security for the performance
of an obligation.
, (6) "Residential rental locator" means a person who offers for consideration to locate a unit in
an apartment complex for lease to a prospective tenant. The term does not include an owner
who offers to locate a unit in the owner's complex.
(7) "Sales agent" means a person who is sponsored by a licensed broker for the purpose of
performing an act described by Subdivision (1).
(8) "Subagent" means a license holder
Subchapter A. General Provisions
Sec. 1101.005. Applicability Of Chapter.
This chapter does not apply to: (1) an attorney licensed in this state;
(2) an attorney-in-fact authorized under a power of attorney to conduct not more than three
real estate transactions annually;
(3) a public official while engaged in official duties;
(4) an auctioneer licensed under Chapter 1802 while conducting the sale of real estate by
auction if the auctioneer does not perform another act of a broker;
(5) a person conducting a real estate transaction under a court order or the authority of a will
or written trust instrument;
(6) a person employed by an owner in the sale of structures and land on which structures are
located if the structures are erected by the owner in the course of the owner's business;
(7) an on-site manager of an apartment complex;
(8) an owner or the owner's employee who leases the owner's improved or unimproved real
estate; or
(9) a transaction involving:
(A) the sale, lease, or transfer of a mineral or mining interest in real property;
(B) the sale, lease, or transfer of a cemetery lot;
(C) the lease or management of a hotel or motel; or
the sale of real property under a power of sale conferred by a deed of trust or other contract
lien.
Subchapter B. Texas Real Estate Commission
