Texas License Law
The Texas Real Estate License Act (Texas Occupations Code Chapter 1101) requires license holders to have 'competency' in the transactions they undertake. A competency standard means:
AAll license holders must know everything about every type of real estate
BLicense holders should not undertake transactions for which they lack the expertise without disclosing limitations and seeking appropriate assistance✓ Correct
COnly brokers need to be competent; sales agents can rely on their broker
DCompetency is determined only by the number of years of experience
Explanation
TREC's competency requirements mean that license holders should understand the transaction type they are engaged in. If an agent lacks expertise in a specialized area (commercial, farms and ranches, etc.), they should disclose this to the client and either decline the transaction or associate with someone who has the needed expertise.
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