Agency
A Texas real estate agent who refers a client to a home inspector friend and receives a referral fee from the inspector must:
AKeep the fee since it is a personal matter
BDisclose the referral fee to the client✓ Correct
CRefuse the fee to avoid conflicts of interest
DReport the fee to TREC
Explanation
Any referral fee, rebate, or thing of value received by a Texas license holder for referring a client to a service provider (inspector, lender, title company, etc.) must be disclosed to the client. This is required under TREC rules, RESPA (for federally related transactions), and the agent's duty of disclosure. Failure to disclose can be a TREC violation.
Related Texas Agency Questions
- When a Texas sales agent's sponsoring broker dies or loses their license, the sales agent's license automatically becomes:
- A Texas buyer asks their agent to help them buy a home in a neighborhood the agent has never worked in. The agent's duty of competence requires them to:
- In Texas, the concept of 'apparent authority' means a principal may be bound by an agent's unauthorized act when:
- Under Texas law, a 'seller's agent' who also seeks to represent the buyer without proper intermediary disclosure and consent would be acting as a:
- A Texas agent is working with a buyer who wants to make a lowball offer on a listed property. The seller's agent says the seller would never accept such a low offer. The buyer's agent should:
- In Texas, a 'net listing' is:
- Under Texas law, when a broker represents both the buyer and the seller in the same transaction with written consent from both parties, this relationship is called:
- Under Texas law, the duty of 'obedience' an agent owes their client means the agent must:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →