What does TREC Rule 535.2 broker responsibility require?
In fact, TREC Rule §535.2(b) states that a broker owes the highest fiduciary obligation to the client and is obligated to convey to the client all information known to the agent which may affect the principal's decision, unless pro- hibited by other law.
Which of the following responsibilities can be that of the broker in a real estate transaction?
A real estate broker can work as a traditional agent with duties such as marketing and showing properties, negotiating prices, and overseeing property sales transactions. Additionally, brokers can also work as designated brokers, which are brokers who own or manage a real estate firm.
Do Texas brokers have to take a broker responsibility class every 2 years as well as maintain?
To remain an active Sales Agent, all licensees must complete 18-hours of Continuing Education (CE) every two years including the required 4-hours of Legal Update I and 4-hours of Legal Update II. If your broker has made you a supervisor, you must also complete the 6-hour Broker Responsibility course to renew.
Which of the following do brokers have a responsibility to disclose?
The duty of disclosure obligates a real estate broker representing a seller to reveal to the seller: ▪ All offers to purchase the seller's property. The identity of all potential purchasers. Any facts affecting the value of the property.
What must be included in broker advertisem*nts according to TREC rules?
All license holders' advertisem*nts must include the license holder's name or team name. It also must include the broker's name in at least half the size of the largest contact information for any sales agent, associated broker, or team name contained in the advertisem*nt.
What is a broker's responsibility?
A broker is a sales professional who executes sales transactions between two parties in exchange for a commission. Present in real estate, finance and other sectors, brokers facilitate the sale of financial products, property assets, intellectual property, material goods and more.
What fiduciary responsibility is required of a transaction broker?
Under California law, a real estate broker has a fiduciary duty to their client. The broker's fiduciary duty to the client requires the utmost good faith and undivided service and loyalty. The broker fiduciary duty is greater than the negligence standard of due care of under Civil Code § 2079.
Who is required to take broker responsibility course in Texas?
Section 535.92 of the Texas Real Estate Commission (TREC, the Commission) Rules requires a broker or a designated broker of a business entity who sponsors sales agents, and a license holder who is a delegated supervisor of one or more license holders, to complete this six-hour broker responsibility course to renew a ...
What reports must Texas brokers maintain for 4 years?
According to TREC reasonable record retention for the following documents is four years: Closing Statements, Contracts, Leases, Lease Applications, Inspections, Financial Records for the License Holder's clients, Financial Records for the License Holder's operations, Seller's Disclosure Notices, Notes within the ...
What are the primary duties of the broker lawyer committee?
The Texas Real Estate Broker-Lawyer Committee drafts and revises all contracts promulgated by TREC. It consists of six members appointed by the Commission, six members appointed by the State Bar of Texas, and one public member appointed by the Governor's Office.
What obligations does a broker have to the customer?
A broker who becomes a fiduciary of his client must act with utmost good faith, reasonable care, and loyalty concerning the customer's account, and owes a duty to keep informed regarding changes in the market which affect his customer's interests, to act responsibly to protect those interests, to keep the customer ...
What is a broker's fiduciary responsibility to clients?
Fiduciary duties are legal obligations that require an individual or entity to act in the best interests of another party. In real estate, agents have a fiduciary duty to their clients, which means that they must act in the best interests of their clients and not their own interests.
What is a responsibility of the broker who is acting as fiduciary for a principal?
Fiduciary duties include, among others, loyalty; confidentiality; the exercise of utmost care (and in certain fact situations, reasonable care); full and complete disclosure of all material facts; the obligation to account to the principal; the obligation to act fairly and honestly and without fraud or deceit; and the ...
Which of the following is a responsibility of the Texas Real Estate Commission as provided in the Texas real estate license Act?
One of the primary duties of the Texas Real Estate Commission is to oversee the licensing and quality of sales agents, brokers, and appraisal professionals. This means that the Texas Real Estate Commission regulates proceedings such as sales and appraisals of real estate.
Who is responsible for registering a team name with TREC?
First, the broker must register the team name as the broker's “assumed name” with the commission. If the team name does not include the name of a salesperson, the team can advertise using that name.
Which of the following is typically a licensees duty to the brokerage?
Which of the following is typically a licensee's duty to the brokerage? Work to promote and sell the broker's listings.
What is the broker's responsibility at the closing quizlet?
When Broker is Closing. What are responsibilities? * Sign settlement statement and provide a proper statement to the client represented. All money belonging to others must be deposited in accounts independent of any account the broker might be maintaining.
What is the broker's role prior to closing?
Additional Responsibilities
The broker determines an appropriate loan amount, loan-to-value (LTV) ratio, and the borrower's ideal loan type. They then submit the application to a lender for approval. The broker communicates with the borrower and the lender during the entire transaction through closing.
What is the responsibility of a broker engaged by a buyer?
(b) A broker engaged by a buyer shall timely disclose to a prospective seller with whom the broker is working as a customer and who is selling property which will be financed either by a loan assumption or by the seller's providing a part or all of the financing all material adverse facts actually known by the broker ...
What is the highest fiduciary obligation a broker owes?
(b) A broker owes the highest fiduciary obligation to the principal and is obliged to convey to the principal all information known to the agent which may affect the principal's decision unless prohibited by other law.
Do brokers have a fiduciary duty to their clients?
While many argue that brokers should be held to the same standard as other professionals who owe a fiduciary duty to their clients, current laws and regulations only require brokers to provide suitable recommendations based on clients' investment objectives.
Which of the following falls under an agent's fiduciary responsibilities?
Final answer: An insurance agent's fiduciary responsibilities include promptly forwarding premiums, helping clients file claims, and reviewing clients' coverage. Explanation: The fiduciary responsibility of an insurance agent refers to their legal and ethical obligation to act in their clients' best interest.
Can a broker working for a responsible broker act independently from the responsible broker?
Yes, under the Real Estate Law, a broker-associate can work in the capacity of a salesperson for another responsible broker(s) and also work as an independent broker. However, an affiliation agreement signed by the responsible broker and the broker-associate may prohibit such activity.
Who regulates real estate brokers in Texas?
TREC is the government agency that protects consumers by regulating certain real estate professionals. TREC educates, licenses, and disciplines license holders.
How should a broker maintain records?
Records may be maintained off site, if brokers ensure that the records are stored securely and are readily accessible. After notice, the broker must make all records available to the DRE's designated representative for examination, inspection, and copying during regular business hours at the broker's office location.
