A sponsoring broker discovers that one of the broker's sponsored sales agents received compensation from both the buyer and seller in the same transaction without disclosing it to either party. What is the broker's primary obligation under TREC rules?
Correct Answer
B) Take corrective supervisory action, which may include addressing the violation and preventing its recurrence, because the broker bears a duty to supervise sponsored agents
Under TREC Rule §535.2, a sponsoring broker has an affirmative duty to supervise all sponsored sales agents. When the broker discovers a violation such as undisclosed dual compensation, the broker must take corrective supervisory action — including addressing the specific conduct and implementing measures to prevent recurrence. Failure to act on a known violation can itself constitute inadequate supervision, exposing the broker to independent disciplinary liability.
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 TRELA and TREC rules, which of the following is a requirement that a sales agent must satisfy to qualify for a broker license that is NOT required to obtain a sales agent license?
- → Broker Harrison sponsors three sales agents and two broker associates. Under TREC rules, which individuals is Harrison responsible for supervising?
- → Under TREC rules, which continuing education courses must a broker associate complete during each two-year renewal cycle?