Texas Real Estate STANDARDS OF CONDUCT Exam Study Guide with Complete Solutions

Texas Real Estate STANDARDS OF CONDUCT Exam Study Guide with Complete Solutions If a broker tells a lender that the sales price on a property is something above its actual sales price in order to help the buyer obtain a larger loan, the - Answer️️ -broker faces loss of license and a fine. Brokers are not to be parties to a dual contract for the purpose of obtaining a larger loan. Doing so may subject the license holder to charges of fraud. In Texas, real estate commissions are - Answer️️ -negotiable between the client and the broker. Commissions are always negotiable between the principal and the agent. The commissions are not determined by law, the Real Estate Commission, or a group of local brokers. Any attempt to set commission rates among competitors in the real estate industry would be considered an antitrust violation. A broker does not commit an antitrust violation by requiring all the broker's own licensees to charge a specific rate or amount so long as the broker does not conspire or agree with competing brokers to do the same. All listings and buyer/tenant representation agreements in the firm belong to the broker. Therefore, the broker is only prescribing a commission amount for all the broker's own agreements. ©SOPHIABENNETT_2024/2025 EXAM SERIES Monday, September 2, 2024 9:52 AM Page | 2 Regarding listing agreements in Texas, which of the following might result in the suspension or revocation of an individual's real estate license? - Answer️️ -no definite termination date. Listings must have a definite termination date not subject to prior notice. Net listings are - Answer️️ -is permitted in Texas but discouraged. Net listings are legal but discouraged because of a potential conflict of interest. Net listings are permitted by TREC only when the principal (1) requires a net listing and (2) where the principal appears to be familiar with current market values. Additionally, when negotiating any listing, net or otherwise, or even offering to purchase the property on the licensee's own account as a result of a contact made while acting as a real estate agent, a "licensee is obligated to advise a property owner as to the licensee's opinion of market value of a property." The License Act requires that every listing - Answer️️ -has a definite termination date. All listings must specify a definite period during which the broker is to be employed and must have a definite termination date. Texas statute prohibits the use of automatic extensions of time in listing agreements. All of the following are violations of the Texas Real Estate Licensing Act EXCEPT ©SOPHIABENNETT_2024/2025 EXAM SERIES Monday, September 2, 2024 9:52 AM Page | 3 A)failing to disclose to a potential purchaser any latent structural defects known to the license holder. B)receiving a commission without the knowledge and consent of the license holder's client. C)encouraging a seller to reject an offer because the of the prospective buyer's religion. D)placing a For Sale sign in front of a house after receiving written permission to post the sign. - Answer️️ -placing a For Sale sign in front of a house after receiving written permission to post the sign. A broker must always have written consent to erect a For Sale or lease sign on a property. In Texas, real estate brokers or salespersons A)must disclose to a buyer's agent that their client wil