Under the Canons of Professional Ethics and Conduct adopted by TREC, a license holder who knowingly withholds information from a client that is material to the transaction is in violation of which Canon?
Correct Answer
B) The Canon of Fidelity, because license holders must convey all material information obtained during a transaction to their client
TREC Rule §531.1 establishes the Canon of Fidelity, which requires license holders to use their best efforts to protect the interests of their clients and to convey all material information obtained during the transaction that would affect the client's decisions. Knowingly withholding material information from a client is a direct violation of this Canon and may also constitute a basis for license discipline under Texas Occupations Code §1101.652(b)(3).
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