June 2015
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May not discriminate
on basis of protected
class
May not steer
May not inquire about,
respond to or facilitate
inquiries which
indicates any
preference, limitation,
or discrimination
TREC
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May not deny equal
professional services to any
person based on protected
class.
May not be part of any plan
or agreement to
discriminate
May not volunteer
information regarding
composition
May not engage in activity
which may result in panic
selling
May provide demographic
information.
CCIM
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CCIM
May not publish ads or statements that
discriminate
May provide demographic information
from a recognized, reliable,
independent, and impartial source, with
the source disclosed
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Ads may not be
misleading and must
identify the publisher as
a licensed broker or
agent
Must have owner’s
written consent to place
a sign on property
May not offer to sell
property without owner’s
knowledge and consent
TREC
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Must be honest and
truthful in and present
a true picture in Ads.
Must ensure status as
real estate professional
is apparent in Ads
May use term ‘free’
with disclosure of
terms
May offer inducements
if terms disclosed
CCIM
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May not offer property
on terms not
authorized by owner
Ad must contain name
of broker
Ad may not imply
salesperson is
responsible for the
brokerage operation
Each page on website
is a separate Ad
TREC
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May not advertise
without authorization
May not quote price
different than agreed
Ads must contain name
of firm
Must disclose any
ownership interest in Ad
To claim “sold” must
have participated in sale
CCIM
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May offer rebates if Ad
contains disclosure of
terms
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Should keep info. on
websites current
CCIM
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May not drafts an
instrument that
transfers or affects an
interest in real estate
May not advise a
person regarding the
validity or legal
sufficiency of an
instrument or title to
real property.
TREC
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May not engage in
unauthorized practice
of law
Must recommend party
obtain legal counsel
when transaction
requires it.
CCIM
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It is OK for broker to complete forms if forms
are:
◦ TREC forms;
◦ Forms prepared by a Texas attorney; or
◦ Forms prepared by owner
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Must TREC forms except
◦ When broker is a principal in transaction
◦ Gov’t agency requires otherwise
◦ when form attorney drafted and required by
principal’s attorney
◦ When no TREC form exists and attorney has
drafted a standard form
TREC
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TREC
May only fill in blanks
May not add to or strike, but may strike only
items desired by the principals and as is
necessary to meet intent of the parties
May add factual statements and business
details desired by the principals
May not add provisions for which a standard
addendum exists
May not employ lawyer for principals
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May not make a
material
misrepresentation of a
significant defect,
known to the licensee
May not fail to disclose
known defect
TREC
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Must avoid exaggeration,
misrepresentation, or
concealment
Not obligated to discover
latent defects
Not obligated to disclose
confidential facts
Only obligated to
discover and disclose
adverse factors
reasonably apparent to a
broker
CCIM
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Broker can give opinion
of value if it is:
◦ not referred to as an
appraisal;
◦ provided in the ordinary
course of business; and
◦ is related to the actual or
potential sale or lease
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May not perform
appraisal but may give
BPO/CMA of disclosure is
in in opinion, verbatim
TREC
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May not act outside
member’s area of
expertise
If giving an opinion of
value (outside
obtaining listing or
formulating offer),
then must contain
items in the standards
CCIM
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May not negotiate with
client of another broker
knowing client is under
an exclusive agency with
another broker
Not prohibited from
soliciting a listing from
the owner while the
owner is subject to an
exclusive listing with
another broker
TREC
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May not take action
inconsistent with
exclusive brokerage
relationship of another
Does not prohibit
innovative , but ethical,
business practices
CCIM
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CCIM
May make general announcements about
services, it not targeted at others’ clients
Not prohibited from contacting another’s
client to enter into a different type of
service contract
May not contact owner subject to a listing
for purposes of entering into another
listing, even upon expiration; but may
respond if prospective client contacts
broker
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Fact client belonged to broker in past
transactions does not preclude others from
seeking client later
Must make effort to determine whether the
prospect is subject to a current exclusive
relationship
Must disclose relationship at first contact
and shall provide written confirmation of that
disclosure to at time of contract.
CCIM
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CCIM
All dealings shall be carried on with the
client's broker, and not with the client, except
with the consent of the client's broker or when
initiated by the client.
May not knowingly obligate the client to pay
more than one commission except with their
informed consent
May not induce clients to break existing
agency agreements
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Must make clear to all
parties for whom broker
is acting
Must give IABS form at
first substantive dialogue
May act as an
intermediary if
authorized in writing and
acts impartially
May appoint associated
licensees (in writing)
TREC
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Must disclose at time
of listing or
representation
agreement, policies
about multiple
representation
CCIM
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TREC does not mediate
or arbitrate
commission disputes
Primary duty is to that
of client
TREC
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Have duty to arbitrate
in accordance with
requirements under
Art. 17
CCIM
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To maintain cause of
action to enforce a
commission must: (i)
prove one is licensed;
and (ii) produce the
written commission
agreement.
Does not apply to
agreements between
brokers
TREC
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Must insure that all
agreements are in
writing, whenever
possible, and kept
current
CCIM