The Texas MCE 2010 Ethics Update was written to provide guidance and discussion of the ethical requirements and concerns affecting Texas Real Estate Agents. First, the five canons of professional ethics and conduct are identified and discussed. Because agency relationships are critical to real estate transactions, this relationship is explored. Another relationship that is explored involves connections between parties in real estate transactions, including intermediary brokerage relationships and subagency.

The relationship between a real estate agent and a client is a fiduciary one, requiring each agent to put clients interests first and adhere to the particular standards and ethics required by law. The varied responsibilities and duties of the real estate agent to different parties may often lead to conflicts of interest. Real estate agents must be aware of these potential conflicts and be aware of how to prevent and deal with them.

The course discusses the specific requirements for agents in making offers to clients, disclosures of information, and resolving any disputes that may arise in the course of real estate transactions. When agents fail to meet the required ethical standards or satisfy other legal requirements they are subject to disciplinary action. This course includes case studies, which help to explore the ethical situations that agents may face, and the potential consequences that may occur when agents fail to behave in accord with the ethical requirements that govern their business transactions. The course concludes with a question and answer exercise about Disclosure of Agency and Intermediary Practice.

Learning Objectives

• Discuss procedures the commission is required to adopt during informal dispositions so as to expedite discipline and avoid formal proceedings.
• Distinguish between when an Information about Brokerage Services form is and is not required.
• State a situation when licensees are not subject to an intermediary’s duty of impartiality.
• Describe what must happen when a broker orally agrees to represent a buyer.
• Discuss minimum services that property managers, builders and sealed bid proceedings must provide, as they relate to technical questioning in compliance with the Real Estate License Act.
• Explain in what instances a party to a real estate transaction may sue a broker for violation of the Deceptive Trade Practices Act (DTPA).
• Explain reasons why the DTPA is particularly hard on brokers who merely rely on the information furnished them by home owners.
• Distinguish between truthful and misleading advertising.
• Explain why mediation should be understood as distinctive from making decisions or granting awards.
• Summarize court case legislation and consequent disciplinary actions.

Assessments

• 7 quizzes with 10 questions each
• 1 final exam with 30 questions

Approved Course Number:

03-03-129-6505