Texas License Law
Under TREC rules, which of the following is a prohibited real estate activity for a Texas license holder?
APurchasing a property in which they have a personal interest
BRepresenting a buyer and seller as intermediary with written consent
CAccepting an undisclosed profit from a vendor referral✓ Correct
DCharging a commission rate higher than competitors
Explanation
Accepting undisclosed profits, kickbacks, or referral fees from vendors (inspectors, lenders, contractors) without disclosing to the client is prohibited by TREC rules and RESPA. All compensation received must be disclosed to the client. Commission rates are freely negotiable and not regulated by TREC.
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