Texas License Law
Under TREC rules, a Texas real estate license holder who acts as the seller or buyer in a real estate transaction must disclose their license status because:
AThey must pay double the commission
BIt is a material fact that may influence the other party's decisions in the transaction✓ Correct
CTREC requires all license holders to buy or sell only through other agents
DThe license status automatically creates a conflict of interest
Explanation
When a license holder has a personal interest in a transaction as a buyer or seller, they must disclose their licensed status. This is a material fact—the other party may act differently knowing they are dealing with a real estate professional who has knowledge and expertise that an ordinary consumer might not have.
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