Unit 6: Ethics of Practice as a License Holder Flashcards
Describe the requirements of the Canons of Professional Ethics of the Texas Real Estate Commission.
Fidelity: The agent’s primary duty is to represent the interests of the client.
Integrity: The agent must be honest and morally sound.
Competency: The agent must be knowledgeable about national, state, and local issues and conditions.
Consumer Information Form 1-2: The broker must display a notice concerning the real estate recovery trust account.
Discriminatory practices: The agent may not discriminate based on legally protected classes.
Information About Brokerage Services: The agent must provide the notice explaining brokerage services in Texas.
fidelity
A real estate broker or salesperson, while acting as an agent for another, is a fiduciary. Special obligations are imposed when such fiduciary relationships are created. They demand:
(1) that the primary duty of the real estate agent is to represent the interests of the agent’s client, and the agent’s position, in this respect, should be clear to all parties concerned in a real estate transaction; that, however, the agent, in performing duties to the client, shall treat other parties to a transaction fairly;
(2) that the real estate agent be faithful and observant to trust placed in the agent, and be scrupulous and meticulous in performing the agent’s functions; and
(3) that the real estate agent place no personal interest above that of the agent’s client.
integrity
A real estate broker or salesperson has a special obligation to exercise integrity in the discharge of the license holder’s responsibilities, including employment of prudence and caution so as to avoid misrepresentation, in any wise, by acts of commission or omission.
competency
It is the obligation of a real estate agent to be knowledgeable as a real estate brokerage practitioner. The agent should:
(1) be informed on market conditions affecting the real estate business and pledged to continuing education in the intricacies involved in marketing real estate for others;
(2) be informed on national, state and local issues and developments in the real estate industry;
(3) exercise judgment and skill in the performance of the work.
consumer information form 1-2
(a) The Commission adopts by reference the Consumer Protection Notice TREC No. CN 1-2. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov.
(b) Each active real estate broker and sales agent shall provide the notice adopted under subsection (a) by:
(1) displaying it in a readily noticeable location in each place of business the broker maintains; and
(2) providing a link to it in a readily noticeable place on the homepage of each business website, labeled:
(A) “Texas Real Estate Commission Consumer Protection Notice” in at least 10 point font; or
(B) “TREC Consumer Protection Notice” in at least 12 point font.
(c) For purposes of this section, business website means a website on the internet that:
(1) is accessible to the public;
(2) contains information about a license holder’s real estate brokerage services; and
(3) has the content of the website controlled by the license holder.
(d) For purposes of providing the link required under subsection (b)(2) on a social media platform, the link may be located on:
(1) the account holder profile; or
(2) a separate page or website through a direct link from the social media platform or account holder profile.
discriminatory practices
No real estate license holder shall inquire about, respond to or facilitate inquiries about, or make a disclosure which indicates or is intended to indicate any preference, limitation or discrimination based on the following: race, color, religion, sex, national origin, ancestry, familial status, or handicap of an owner, previous or current occupant, potential purchaser, lessor, or potential lessee of real property. For the purpose of this section, handicap includes a person who had, may have had, has, or may have AIDS, HIV-related illnesses, or HIV infection as defined by the Centers for Disease Control of the United States Public Health Service.
information about brokerage services
(a) The Commission adopts by reference the Information About Brokerage Services Notice, TREC No. IABS 1-0 (IABS Notice). The IABS Notice is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov.
(b) Each active real estate broker and sales agent shall provide:
(1) a link to a completed IABS Notice in a readily noticeable place on the homepage of each business website, labeled:
(A) “Texas Real Estate Commission Information About Brokerage Services” in at least 10 point font, or
(B) “TREC Information About Brokerage Services” in at least 12 point font; and
(2) the completed IABS Notice at the first substantive communication as required under §1101.558, Texas Occupations Code.
(c) For purposes of §1101.558, Texas Occupations Code, the completed IABS Notice can be provided:
(1) by personal delivery by the broker or sales agent;
(2) by first class mail or overnight common carrier delivery service;
(3) in the body of an email; or
(4) as an attachment to an email, or a link within the
body of an email, with a specific reference to the IABS
Notice in the body of the email.
(d) The link to a completed IABS Notice may not be in a footnote
or signature block in an email.
(e) For purposes of this section, business website means a
website on the internet that:
(1) is accessible to the public;
(2) contains information about a license holder’s real
estate brokerage services; and
(3) has the content of the website controlled by the
license holder.
(f) For purposes of providing the link required under
subsection (b)(1) on a social media platform, the link may be located on:
(1) the account holder profile; or
(2) a separate page or website through a direct link
from the social media platform or account holder
profile.
(g) License holders may reproduce the IABS Notice published by the Commission, provided that the text of the IABS Notice
is copied verbatim and the spacing, borders, and placement of text on the page must appear to be identical to that in the
published version of the IABS Notice, except that the Broker Contact Information section may be prefilled.
