Texas Real Estate Broker Exam — All Questions

The Information About Brokerage Services (IABS) notice in Texas must be provided:

• a.Only at closing
• b.At the first substantive communication with a prospective client about a specific property✓
• c.Only if the client asks for it
• d.Within 30 days after the transaction ends

Texas licensees must give the IABS notice at the first substantive communication with a prospective client about a specific property. The IABS explains the ways a broker can represent a party, the broker's minimum duties, and how the broker is paid. It is informational and does not by itself create a representation agreement.

When a Texas broker represents both the buyer and the seller in the same transaction, Texas law describes the broker's role as a(n):

• a.Dual agent
• b.Subagent
• c.Intermediary✓
• d.Facilitator with no duties

Texas does not use the term 'dual agency.' When a broker represents both parties in one transaction, the broker acts as an intermediary. This requires written consent from both parties in their representation agreements, and the broker may appoint different associated license holders to advise each party. Confidential information must not be disclosed across the transaction.

In a Texas intermediary transaction, an appointed license holder must:

• a.Keep each party's confidential information, such as the price they will accept, from the other side✓
• b.Reveal the seller's lowest acceptable price to the buyer
• c.Represent both parties equally in all confidential matters
• d.Refuse to communicate with either party

In an intermediary transaction, the intermediary and any appointed license holders must remain impartial and must not disclose confidential information, such as the price or terms a party will accept, to the other side. Appointment lets each party receive advice from a separate associated license holder while confidentiality is preserved.