Texas — Standards of Conduct — Texas Real Estate — State Law Practice Test
36 questions in this topic · 30 drawn at random this round
Under TREC Rule §535.146, how must a Texas broker hold trust money such as earnest money or security deposits?
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This Texas Real Estate — State Law Texas — Standards of Conduct practice set has 36 practice questions based on the official exam materials, each with an instant explanation.
Sample questions
Three questions from the Texas — Standards of Conduct bank with the correct answer and an explanation. The practice quiz above draws 30 questions at random from the same bank.
Under Texas law, what is the overarching purpose of the professional-ethics standards that TREC enforces against real-estate license holders?
- To protect the public by requiring honest, competent, and trustworthy conduct from license holders — Correct answer
- To guarantee every license holder a minimum annual commission income
- To limit the number of brokerages allowed to operate in each Texas county
- To set the commission rates that brokers must charge their clients
Explanation: TRELA and TREC's conduct rules exist to protect the public; a license holder owes the public honesty, integrity, and competent service, and conduct that is dishonest, in bad faith, or that demonstrates untrustworthiness is itself grounds for discipline. Professional ethics（职业道德）: the standards of honesty and fair dealing TREC requires of every license holder to protect the public. TRELA §1101.651 & §1101.652(b)(2).
Handbook: Texas Standards of Conduct — Professional ethics / purpose (TRELA §1101.651 / §1101.652(b)(2))
A Texas license holder represents a seller. Which duty best describes the fidelity the license holder owes that client?
- To act loyally and in good faith, putting the client's interest ahead of the license holder's own — Correct answer
- To obtain the highest possible commission even at the client's expense
- To favor whichever party is most likely to use the license holder again
- To treat the client and all third parties identically with no special loyalty
Explanation: A license holder owes the client (the principal) fidelity — loyalty and good-faith service in the client's interest — and may not place the license holder's own interest or another party's interest above the client's. Breaching that loyalty (e.g., self-dealing or bad faith) is grounds for discipline. Fidelity to client（对客户的忠诚）: the loyal, good-faith service a license holder owes the principal. TRELA §1101.652(b)(2) & §1101.557.
Handbook: Texas Standards of Conduct — Fidelity to client (TRELA §1101.557 / §1101.652(b)(2))
Which of the following is a recognized ground for TREC to suspend or revoke a Texas real-estate license under TRELA §1101.652(b)?
- Engaging in conduct that is dishonest, in bad faith, or that demonstrates untrustworthiness — Correct answer
- Earning a commission that the client considers too high
- Selling fewer homes than other agents in the same office
- Choosing not to join a local REALTOR® association
Explanation: TRELA §1101.652(b) lists grounds for discipline including engaging in conduct that is dishonest, in bad faith, or that demonstrates untrustworthiness, as well as fraud and misrepresentation. These broad conduct grounds let TREC discipline a wide range of misconduct beyond specific technical violations. Grounds for discipline（处分理由）: the statutory acts for which TREC may suspend or revoke a license. TRELA §1101.652(b)(2).
Handbook: Texas Standards of Conduct — Grounds for discipline overview (TRELA §1101.652(b)(2))