TRECs canon of Integrity requires a license holder to demonstrate and practice what
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Paragraph 4 – LICENSE HOLDER DISCLOSURE Show
(NEW): “Texas law requires a real estate license holder who is a party to a transaction or acting on behalf of a spouse, parent, child, business entity in which the license holder owns more than 10%, or a trust for which the license holder acts as a trustee, or of which the license holder or the license holder’s spouse, parent or child is a beneficiary, to notify the other party in writing BEFORE entering into a contract of sale. Disclose if applicable: __________________________________________________.” The License Holder Disclosure paragraph is likely to see only limited use – Most of the time it is simply N/A. It addresses the need for persons who are both licensed as a broker or salesperson, and involved in the transaction either directly as a party, or indirectly as a representative of a close family relation. Examples for filling in the Disclosure Blank: “N/A” “Buyer is a licensed Texas Real Estate Broker” Business Owner’s Only – Over 10% Owner: “Seller is a Real Estate License holder who owns over 10% of biz name> + LLC, INC. etc." Remember: WHEN IN DOUBT - DISCLOSE!!! NOTE: This paragraph requires the license holder to divulge any relationship of the listed types that exist in the contract. It is a TREC rule now and can be a subject of disciplinary action if omitted by the license holder who engages in misrepresentations, dishonesty, or fraud when selling, buying, trading or leasing real property in the name of: (A) the license holder; (B) the license holder’s spouse; or (C) a person related to the license holder within the first degree by consanguinity. When to DISCLOSE BEING A LICENSE HOLDER: Under the license act and its associated TREC rules, the disclosure that one is licensed must be made BEFORE entering into a contract. The Safest Rule is to DISCLOSE EARLY and OFTEN. (excerpts from Attorney/Professor James I. Wiedemer) Unit 6 QuizQUESTION# 1Which aspect of the Canons of Professional Ethics and Conduct requires a real estate agent torepresent the interests of the client? QUESTION# 2Which aspect of the Canons of Professional Ethics and Conduct requires the broker or salesagent to employ prudence and caution in the discharge of duties so as to avoidmisrepresentation? QUESTION# 3Which rule of conduct in the Canons of Professional Ethics and Conduct requires a real estateagent to be informed on market conditions and on national/state/local issues? QUESTION# 4Under the discriminatory practices canon of the Canons of Professional Ethics and Conduct,which practice is permitted?
Newly uploaded documentsChapter 8 – EthicKey TermsCanons Of Professional Ethics And Conduct- Part of the TREC Rules requiring, fidelity,integrity, competency, the use of Consumer Information Notice, and the refraining ofdiscriminating practices.National Association Of REALTORS® - Founded in 1908, the largest trade association inthe United States, the National Association of Realtors supports its members andprotects the public through the association's Code of Ethics.Consumer Information- A written notice published by TREC to be provided by a brokeror a sales person to a consumer.Discriminatory Practices- No real estate license holder shall inquire about, respond toor facilitate inquiries about, or make disclosure which is intended to indicate anypreference, limitation, or discrimination of a protected class of people.Competency -The broker or sales agent must be knowledgeable and competent as areal estate brokerage practitioner.Fidelity -A real estate broker or sales agent, while acting as an agent for another is afiduciary and must place the interest of the client above that of the agent.Integrity -A real estate broker or sales agent has a special obligation to exercise integrityin the discharge of the license holder’s responsibilities by employing prudence of cautionso as to avoid misrepresentation by acts of omission or commission. What is the canon of integrity?The Integrity canon deals with misrepresentations. Licensees owe a special obligation to exercise integrity in discharging responsibilities. This may be accomplished with prudence and caution to avoid misrepresenta- tion by words, deeds or omissions (Section 531.2).
Under what Texas Real Estate Commission Canon must an agent be faithful and observant to the trust placed in them?The canon of fidelity requires that a real estate broker or sales agent, while acting as an agent for another, be faithful and observant to trust placed in the agent and be scrupulous and meticulous in performing the agent's function.
Which of the following is a Texas Real Estate Commission canon of professional ethics and conduct?The Real Estate License Act states the rules and regulations that apply to the licensee. with their broker. The three Canons of Professional Ethics and Conduct are integrity, fidelity and competency.
How many members are in the Texas Real Estate Commission?The Texas Real Estate Commission is composed of nine members appointed by the Governor for six-year terms. Six members must be licensed real estate brokers. Three members must be members of the general public who are not regulated by the Commission.
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