STATE: standard of conduct (9 questions)

6 canons of professional ethics

Fidelity

Integrity

Competency

Consumer information

Discriminatory practices

IABS form

Fidelity

put no interest above your client

“scrupulous and meticulous”

if you are performing your duties scrupulous and meticulously, you are performing with fidelity

Integrity

no lying

no cheating

no omitting

Competency

knowledgeable about your area, laws, government

Consumer information (consumer protection notice)

notice to the public that has to be posted to places

brokers wall and website

fair housing poster (must be posted on brokers wall) If poster is not up it can be taken as a sign of discrimination

IABS form need to be on website, delivered by mail/email/hand delivered

Discriminatory Practices

shall not inquire about to respond to, facilitate or indicate any discriminatory preferences

IABS Form

disclosure of agency in Texas

talks about what broker and agency do

contact info w brokers info

must be given at first substances dialogue

Grounds for Suspension & Revocation of License

Guaranteeing future profits

receiving commissions from anyone other than broker (illegal)

falling to specify beginning and ending date for any employment agreement

selling real estate by lottery

giving legal advice

falling to notify a purchaser to get a title policy or an attorneys opinion of title

placing a sign outside someone property for sale or lease without written consent

steering and channeling

bring a certain background of people to certain reasons based on class or ethical background

conversion

Spending commingled funds is also prohibited.

Which of the following would not get your license suspended or revoked?

Steering

commingling

guaranteeing future profit

second DWI

second DWI

is it a violation of the TREC rules to practice law?

yes, it is a violation

what are some unauthorized practice of Law for a license holder

practice law

draft a form

out of date forms

not crossing out wording without verbal confident of principle

always advise principle talk to attorney

who can accept earnest money/option fee deposits

title companies

attorneys

brokers

where must earnest money/option fee deposits go?

some type of escrow account

most common money goes to title company

when must the earnest money/option fee be delivered to the title company?

must be delivered by the close of the third day after the effective date of the contract but this deadline may be extended if the third day falls on a Saturday, Sunday or holiday.

who can broker pay commission to?

to agent and to another broker

who can broker not pay commission to?

never to unlicensed person in TEXAS

gifting referrals

a license holder may give a referral gift up to $50 in value (not cash) o an unlicensed individual who provides a referral.

• Gift cards that CANNOT be converted to cash are acceptable.

IABS Form

must be given at first substantive dialogue

tells person what broker and agent does

must be on website homepage/placed link in noticeable location/10 point font type