: Texas Register

Texas Register

TITLE 22	EXAMINING BOARDS
PART 23	TEXAS REAL ESTATE COMMISSION
CHAPTER 535	GENERAL PROVISIONS
SUBCHAPTER N	SUSPENSION AND REVOCATION OF LICENSURE
RULE §535.156	Dishonesty; Bad Faith; Untrustworthiness
ISSUE	12/12/2014
ACTION	Final/Adopted

Preamble

Texas Admin Code Rule

(a)A license holder's relationship with the license holder's principal is that of a fiduciary. A license holder shall convey to the principal all known information which would affect the principal's decision on whether or not to make, accept or reject offers; however, if the principal has agreed in writing that offers are not to be submitted after the principal has entered into a contract to buy, sell, rent, or lease a property, the license holder shall have no duty to submit offers to the principal after the principal has accepted an offer.

(b)The license holder must put the interest of the license holder's principal above the license holder's own interest. A license holder must deal honestly and fairly with all parties; however, the license holder represents only the principal and owes a duty of fidelity to such principal.

(c)A license holder has an affirmative duty to keep the principal informed at all times of significant information applicable to the transaction or transactions in which the license holder is acting as agent for the principal.

(d)A license holder has a duty to convey accurate information to members of the public with whom the license holder deals.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 24, 2014

TRD-201405659

Kerri Lewis

General Counsel

Texas Real Estate Commission

Effective date: January 1, 2015

Proposal publication date: September 5, 2014

For further information, please call: (512) 936-3092

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