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Texas Real Estate Exam (State Portion): Standards of Conduct
Flashcards Suspension/ Revocationcommingling funds, selling without owner's consent, fail to give contract termination date, act in dual capacity as broker and undisclosed principal, steerin (channeling) buyers to or away from area to change character of area, blockbusting (panic pedaling) encourage owners to sell, fail to advise purchaser to have abstract of title or title insurance before closing, not providing copies of docs to signed parties, false promises, puffing or guaranteeing future profit of resale, advertise without disclosing role, placing sign without consent of owner, threaten to sue for commission not owed to you, knowingly withholding/inserting inaccurate information Integritybroker or salesperson is to use prudence and avoid misrepresentation Splitting Feesbroker can divide fees with other brokers licensed in TX, salesperson under broker, broker licensed out of state/country IF nonresident broker did not conduct negotiations in TX Unlawful Practice of Law (automatic revoke) licensee not licensed in law draws deed, note, deed of trust, will, or written instrument that transfers or affects titleadvise/counsel as to validity of legal sufficiency of instrument or title Fidelity (most important)broker or salesperson is a fiduciary (special obligations to
client)Primary Duty: agent represents interest of client and
should let all parties know; treat all other parties fairlyOther
Duties: agent to be faithful and observant, scrupulous and
meticulous; agent place no personal interest above client Trust Accountif hold funds for others, have separate account (comingling)do not use funds for personal use (conversion)deposit earnest $ by close of 2nd business day OR within 48 hours of agreement bindingMaintain escrow accounts for 4 years Competencyagent should be knowledgeable, informed on market conditions, pledge to CE, informed on national, state and local issues in real estate, and exercise judgment and skill Advertising Rulescommission cannot restrict advertising except if false, misleading, deceptive practicecommission cannot restrict advertising medium, appearance, voice, size/duration of ad, trade name use
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