Agency
A Texas real estate agent who is also a licensed mortgage originator helping their buyer client with both the real estate transaction and the financing must:
AChoose one role only for each transaction
BDisclose the dual role to all parties and ensure that both activities comply with applicable law and TREC/NMLS requirements✓ Correct
CRegister the dual role with TREC and HUD
DObtain separate representation agreements for each role
Explanation
A person licensed as both a real estate agent and mortgage originator must disclose their dual role in any transaction where they serve in both capacities. This is a potential conflict of interest that must be disclosed. TREC rules and federal RESPA requirements both address compensation arrangements in such dual-capacity situations.
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