License holder Martinez receives a referral fee from an out-of-state broker for referring a Texas buyer. Under TREC rules and the Canons of Professional Ethics, which of the following statements is correct?
Correct Answer
C) Martinez may accept the referral fee only if she discloses it to all parties and the fee is paid through her sponsoring broker
Under TREC rules and the Canons of Professional Ethics (§531.2), license holders must disclose all forms of compensation to the parties in a transaction. Additionally, under Texas Occupations Code §1101.352, all compensation received by a sales agent must flow through the sponsoring broker. Martinez may accept the fee, but it must be disclosed and paid through her broker.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Trela Trec Rules Question
Background Knowledge for Trela Trec Rules
Real World Application in Trela Trec Rules
Common Mistakes to Avoid on Trela Trec Rules Questions
Related Topics & Key Terms
Key Terms:
More Trela Trec Rules Questions
Under TREC rules, a trust account used by a Texas real estate broker to hold client funds must be maintained at which type of institution?
Under TREC rules, a broker who converts client trust funds to personal use has committed which type of violation?
Under TREC rules, what is the primary purpose of the Real Estate Recovery Trust Account?
Under TRELA, which of the following persons is NOT exempt from the Texas real estate licensing requirement?
Under TREC rules, how many hours of continuing education (CE) must a Texas real estate license holder complete during each 2-year renewal cycle?
- → Broker Henderson is approaching his license renewal deadline. He wants to take a CE course that covers changes to the TREC promulgated contract forms. Under TREC rules, would this type of course satisfy part of his CE requirement?
- → Broker Phillips has been renewing her license every 2 years for 10 years. She wonders whether the Broker Responsibility Course content changes each renewal cycle. Under TREC rules, which statement is correct?
- → Under TREC rules, Legal Update I and Legal Update II courses are required for which license holders?
- → Under TRELA, the Texas real estate licensing examination for a sales agent consists of which sections?
- → Under TREC rules, a license holder completes CE early in the renewal cycle, 20 months before the renewal deadline. Do these CE hours count toward the current cycle?
- → Under TREC rules, which CE courses are mandatory for all license holders during every renewal cycle?
- → Under TREC rules, how long must a CE provider retain records of course completion for license holders who have taken their courses?
- → Under TREC rules, which of the following is the correct order of steps in the TREC complaint process?
- → Under TRELA, which of the following is grounds for TREC to take disciplinary action against a license holder?
- → Broker Thompson believes that a newly proposed TREC rule regarding advertising requirements is too restrictive. Under the Texas Administrative Procedure Act, what right does Broker Thompson have before the rule takes effect?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
A person who has never held a Texas real estate license is found to be conducting real estate brokerage activities in Dallas — showing homes, negotiating offers, and collecting referral fees. Under TRELA, what enforcement action can TREC take against this unlicensed individual?
Next Question
Broker Williams operates a real estate brokerage in Austin. He wants to hire his cousin, who has a business degree but no real estate license, to show properties to potential buyers while Williams is on vacation. Under TRELA, is this arrangement permissible?