Texas Crammer Practice Exam

Which of the following scenarios would violate licensing laws?

1. Having missing transaction forms in the file

2. Charging a standard commission rate

3. Informing clients of all material facts

4. Creating a marketing plan for a property

The correct answer is: Having missing transaction forms in the file

The scenario of having missing transaction forms in the file clearly violates licensing laws because real estate professionals are required to maintain thorough and complete documentation of all transactions. Proper record-keeping is essential for ensuring transparency and accountability in real estate dealings. In the event of a dispute, missing forms could lead to significant legal issues, including violations that may result in penalties or disciplinary action against the licensed individual. In contrast, charging a standard commission rate is typically permissible and often expected within the industry, as it reflects common practice rather than a violation. Informing clients of all material facts is an ethical obligation and helps maintain trust in the client-agent relationship. Creating a marketing plan for a property is considered a normal business practice and does not inherently contravene any licensing laws. Thus, thorough documentation is a crucial aspect of compliance within real estate licensing regulations, which makes the first scenario the only one that represents a violation.