Under the TREC Canons of Professional Ethics and Conduct, which of the following situations most clearly represents a violation of a license holder's duty of fidelity to a client?
Correct Answer
C) A buyer's agent, without the client's knowledge, agrees to reduce the buyer's negotiating position in exchange for a faster closing that benefits the agent's scheduling
Under TREC Canon §531.1 (Fidelity), a license holder must place the client's interests above all others, including the license holder's own personal or financial interests. Unilaterally weakening a buyer's negotiating position to benefit the agent's own scheduling is a direct breach of fidelity — the agent is subordinating the client's interests to personal convenience, which is expressly prohibited.
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Previous Question
A consumer in Houston paid $50,000 as earnest money for a home purchase. The sponsoring broker of the listing agent misappropriated the funds. After exhausting other remedies, the consumer applies to the Texas Real Estate Recovery Trust Account. What is the maximum amount the consumer can recover from the Trust Account for this single transaction?
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TREC members serve staggered terms. Under Texas law, each TREC commissioner is appointed for a term of how many years?