Chapter 6 Real Estate Key Terms

Minimum Level of Services

The legislature has created a minimum level of services for license holders. Some license holders are hired because they charge very low fees & do nothing. Can confuse principals and double work for other broker

Rules of the Texas Real Estate Commission

a more detailed publication by TREC regarding enforcement issues for license holders

TREC Canons of Professional Ethics

Fidelity

Integrity

Competency

Consumer Information

Discriminatory Practices

NAR Code of Ethics

The National Association of REALTORS® Code of Ethics is a nationwide set of standards that REALTORS® (not all licensees) must follow. It emphasizes honesty, fairness, and professionalism in dealing with clients, the public, and other REALTORS®. It also includes enforcement and arbitration processes for ethical complaints and commission disputes.

Fiduciary Duties

"OLD CAR": Obedience, Loyalty, Disclosure, Confidentiality, Accountability, and Reasonable Care.

Fiduciary Relationship

A relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent.

Professional Standards/Arbitration Committee

Comprised of members whose function is to conduct a full "due process" hearing with sworn testimony, witnesses and evidence

Texas Administrative Code and 5 Canons

The Texas Administrative Code (TAC) is the collection of all state agency rules, including TREC's regulations in Title 22, Part 23. Within it, §531 lists the Five Canons of Professional Ethics—Fidelity, Integrity, Competency, Consumer Information, and Discriminatory Practices—which set the moral and professional expectations for Texas real estate license holders.

Grievance Committee

A local REALTOR® board committee that reviews written complaints from the public or other REALTORS® to decide if there's enough evidence to send the case to the Professional Standards Committee. They act like a "screening board" to filter valid ethics or arbitration cases from non-violations