QUICK ANSWER

A Texas broker representing a client owes four minimum duties: put the client's interests first, disclose material information received about the property or transaction, answer questions and present offers or counteroffers, and treat every party honestly and fairly. A representation agreement may limit other services but cannot waive these duties. The broker remains responsible for the brokerage's activities, while a sponsored sales agent acts for the broker and is also directly subject to TREC's fiduciary and conduct rules.

EXAM PREP ONLY

This guide explains how this topic appears on the Texas real estate sales agent exam. It is not legal, tax, lending, brokerage, or licensing advice. Verify current rules with TREC, the Texas Real Estate License Act (Occupations Code Chapter 1101), and the Pearson VUE candidate handbook before acting on a real transaction or application.

4
minimum duties required by law
2026
written buyer agreement rule
0
minimum duties you can waive

Start Here

Texas duty questions trip people up because they sound like opinion when they are actually law.

The exam does not ask whether an agent "should" look out for a client. It asks what an agent is required to do, what a client can and cannot give up, and what changes when the agent does not represent a party at all.

Use this anchor:

A Texas broker can limit the services they provide. A Texas broker cannot limit the minimum duties they owe a client.

That single distinction is the spine of this topic.

The phrase "minimum services" gets used loosely, often borrowed from other states. In Texas the precise idea is two-sided: the scope of services is negotiable in the representation agreement, but a short list of statutory duties is not. Mix those two up on the exam and you will pick a wrong answer that sounds reasonable.

This guide separates them cleanly.

Who Owes The Duties In Texas

The broker holds the brokerage relationship with the client and remains responsible for the brokerage's activities. A sponsored sales agent works on behalf of that broker and is also personally subject to TREC's fiduciary, information, honesty, competency, and timely-response duties while acting for the client.

This distinction prevents two wrong extremes. The broker does not escape responsibility because a sponsored sales agent handled the transaction. The sales agent does not escape the rules because the broker holds the brokerage relationship. Rule 535.2 addresses broker responsibility, while Rules 531.2 through 531.4, 535.156, and 535.157 impose duties directly on a license holder or expressly on a broker or sales agent.

Texas Occupations Code Chapter 1101, the Texas Real Estate License Act (TRELA), is the source of these obligations, and TREC rules build on it. The exam expects you to know that the duty framework is statutory, not just professional courtesy.

If you want the full statutory backbone, pair this with the TRELA Chapter 1101 guide.

The Four Minimum Duties Required By Law

A broker who represents a client owes four minimum duties required by law and listed on the IABS notice: put the client's interests above all others including the broker's own, inform the client of material information about the property or transaction, answer the client's questions and present any offer or counteroffer, and treat all parties honestly and fairly.

Minimum duty What it means in practice
Put the client's interests above all others The broker must place the client ahead of everyone, including the broker's own interests.
Inform the client of material information The broker must pass along material information about the property or transaction received by the broker.
Answer questions and present offers The broker must answer the client's questions and present any offer to or counteroffer from the client.
Treat all parties honestly and fairly Honesty and fair treatment extend to everyone in the transaction, not only the client.

Two of these connect directly to statute, and Section 1101.557(b) supplies both. Under 1101.557(b)(2) a broker who represents a party must inform the party if the broker receives material information related to the transaction, including the receipt of an offer. Under 1101.557(b)(3) the broker shall, at a minimum, answer the party's questions and present any offer to or from the party.

So neither "inform of material information" nor "answer questions and present offers" is a soft expectation. Both are floors written into the License Act.

Notice the fourth duty. Honest and fair treatment of all parties is owed even to people the broker does not represent. That is the bridge to the rest of this topic.

For how these duties get disclosed at first contact, see the IABS form guide.

The canons behind the duties

Client first does not mean everyone else loses protection. Rule 531.2 makes a license holder acting as an agent a fiduciary. It requires fidelity to the client, no personal interest above the client's interest, and fair treatment of other parties. Rule 535.156 reinforces the same divide: fidelity and significant information run toward the principal, while honesty, fairness, and accurate information also govern dealings with others.

Rules 531.3 and 531.4 add integrity and competency. A license holder must use prudence and caution to avoid misrepresentation by an act or omission and must be competent in the brokerage work and market involved.

Rule 535.156 generally requires known information affecting the principal's decision about an offer to be conveyed. Its offer exception requires both an accepted contract and the principal's written agreement that later offers need not be submitted. If an exam question supplies only one condition, the exception is incomplete.

TEXAS TIMING RULE

Rule 535.157 requires a broker or sales agent to respond within two calendar days to their principal, another party's broker or sales agent, or an unrepresented party when the communication concerns a real estate transaction. Calendar days include weekends and holidays.

Limited Services Versus Minimum Duties

Scope of services is what the broker agrees to do and is negotiable in the representation agreement. Minimum duties are what the broker and acting license holder must do regardless of how narrow the service package becomes.

Concept Negotiable? Example
Scope of services Yes A buyer representation agreement could limit the agent to showing properties only.
Minimum duties required by law No The broker still must put the client first, share material information, answer questions, present offers, and treat everyone honestly.

A client can agree to a narrow package of services. A client cannot sign away the broker's statutory duties, and a broker cannot ask them to.

Why that holds, stated precisely. Chapter 1101 contains no clause reading "these duties may not be waived." The reason they cannot be waived is structural, and it is worth understanding rather than memorizing. Section 1101.557(b) is written in mandatory terms: the broker "must" inform, and "shall, at a minimum," answer questions and present offers. Rule 535.156(b) requires the license holder to put the principal's interest above their own and to deal honestly and fairly with all parties. Breach of those is a matter between the license holder and the Commission, and a client's signature does not release the license holder from a disciplinary obligation owed to the state.

So when a question describes an agreement that "limits services," do not assume the duties shrink too. The correct Texas answer is that the scope can narrow while the minimum duties stay intact.

What Rule 535.2 does and does not scope

Be precise about what Rule 535.2 does and does not scope. Rule 535.2(a) requires the broker to notify each sponsored sales agent in writing of the scope of that agent's authorized activities. That is an internal supervision rule, not a rule about how many services the brokerage offers a client. A limited service agreement narrows what the brokerage does for the client; Rule 535.2(a) narrows what an individual agent is authorized to do inside the brokerage. Do not confuse them.

What Rule 535.2 adds is broker responsibility. The broker remains responsible for an agent's authorized acts and for out-of-scope acts the broker permits. The broker also owes the principal the highest fiduciary obligation and generally must convey information known to the agent that may affect the principal's decision. A limited service arrangement does not switch those obligations off. For the full supervision framework, use the broker and sales agent supervision guide.

The frequent exam scenario

This is a frequent exam scenario: a discount or limited service brokerage that "only lists the property." The trap answer says the broker therefore owes no real duties. The correct answer is that a limited scope does not erase the minimum duties or the broker's responsibility.

DUTY QUESTIONS ARE RECOGNITION QUESTIONS

The exam hides the rule inside a scenario about a limited service deal or a party the agent does not represent.

The Texas real estate exam prep app is built for Texas sales agent candidates: original Texas-focused practice questions, agency and disclosure scenarios, state-law review, math drills, flashcards, and weak-area feedback. Use it to drill the duty traps until you can spot the rule the question is testing. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a 180-hour pre-license course or a pass guarantee.

Drill Texas agency questions in the app

Duties To A Party You Do Not Represent

Even when a license holder does not represent someone, Texas still requires honest and fair treatment plus the disclosures required by law, but not advocacy. An unrepresented party should not assume the agent is working for them.

The IABS notice spells out the gap. A broker representing a client owes that client the full set of minimum duties. A license holder dealing with someone they do not represent still owes honesty and fair treatment, but not advocacy for that person.

Relationship What is owed
Broker represents the party (as agent) All four minimum duties, including putting that party's interests first.
Broker does not represent the party Honest and fair treatment, and the disclosures required by law.

Texas Occupations Code 1101.558 requires a license holder who represents a party to disclose that representation at the time of first contact, and it drives the IABS notice that describes a broker's basic obligations to a party the broker does not represent.

This is why a buyer at an open house can be talking to the listing agent, who represents the seller, and still be owed honesty even though the agent is not advocating for the buyer. The exam tests whether you know the difference between honest treatment and representation. For how this plays out when one broker is asked to work both sides, read the Texas intermediary brokerage guide.

The 2026 Written Buyer Agreement Rule

Beginning January 1, 2026, Section 1101.563 generally requires a written agreement before a license holder performing brokerage for a prospective buyer of residential real property shows residential property. If no property will be shown, the agreement is generally due before the license holder presents an offer for that buyer. The writing can establish representation or, when Section 1101.562 applies, a limited showing-only nonrepresentation relationship.

Concept Exam distinction
Representation agreement May limit services, but the minimum client duties remain
Showing-only nonrepresentation No representation or advice; statutory limits apply
Tenants, commercial purchasers, and bare-land buyers Section 1101.563's residential-buyer writing requirement does not apply

The key connection to this article is simple: a representation agreement may narrow what the broker agrees to do, but it cannot waive Texas's minimum client duties. For the agreement contents, the 14-day nonrepresentation limit, open houses, and statutory exceptions, use the complete SB 1968 written-agreement guide.

Common Texas Duty Exam Traps

These are the patterns that catch prepared candidates.

Trap Why it is wrong The Texas rule
A limited service agreement removes the broker's duties It confuses scope with duty Scope can shrink, minimum duties cannot be waived
The listing agent owes a buyer nothing It ignores honest and fair treatment An unrepresented party is still owed honesty and fair dealing
A client can waive the minimum duties for a lower fee It treats statutory duties as optional The minimum duties required by law cannot be waived
Only the sales agent is responsible because the agent dealt with the client It erases broker responsibility The broker remains responsible, while TREC duties also apply to the acting license holder
A buyer can tour homes in 2026 with only a verbal arrangement It ignores the new written-agreement rule Before a covered showing, use either buyer representation or the limited showing-only nonrepresentation writing

Read each duty question twice. First decide whether the scenario is about scope, about a duty, or about disclosure. Then answer the question that was actually asked.

Quick Practice Questions

Try these original questions before checking the key. They mirror how the exam hides a duty, a scope limit, or a disclosure rule inside a scenario.

Question 1. Limited service listing

A seller signs a limited service listing in which the broker agrees only to enter the property in the MLS. Which statement is correct?

A. The broker no longer owes the seller the minimum duties. B. The broker may ignore material information because the service is limited. C. The broker still owes the minimum duties and remains responsible for the brokerage's activities. D. The seller waived honest and fair treatment by choosing limited service.

Answer: C. Scope of services can shrink, but the minimum duties cannot be waived, and TREC Rule 535.2 keeps the broker responsible for the brokerage's activities. A narrow service package does not switch off the duties.

Question 2. Open house conversation

A buyer at an open house talks with the listing agent, who represents the seller. What does the agent owe that buyer?

A. The full set of minimum duties, including putting the buyer's interests first. B. Honest and fair treatment and the disclosures required by law, but not advocacy. C. Nothing, because the agent represents the seller. D. A signed buyer representation agreement before answering any question.

Answer: B. A broker who does not represent a party still owes honest and fair treatment and the disclosures required by law, but not advocacy. The listing agent works for the seller.

Question 3. IABS minimum duties

Which of the following is not one of the four minimum duties listed on the IABS notice?

A. Put the client's interests above all others, including the broker's own. B. Inform the client of material information about the property or transaction. C. Guarantee the client the lowest price or the best terms available in the market. D. Treat all parties to the transaction honestly and fairly.

Answer: C. There is no duty to guarantee price or terms. The four minimum duties are interests above all others, inform of material information, answer questions and present offers, and treat all parties honestly and fairly.

Question 4. The 2026 written agreement rule

Under the rule effective January 1, 2026, when must a license holder performing brokerage for a prospective buyer of residential real property have a written agreement?

A. Within three days after the first showing. B. Before showing residential real property, or before submitting an offer to purchase on the buyer's behalf if no property is shown. C. Only at the closing table. D. Never; a verbal understanding is enough for residential buyers.

Answer: B. Texas Occupations Code 1101.563 requires the written agreement before showing residential real property, or before presenting an offer to purchase if no property is shown. The requirement applies when the license holder performs brokerage for a prospective residential buyer. It does not apply to tenants or commercial purchasers.

What To Pair With This

Resource When to use it
IABS form guide Use it to see how representation and minimum duties are disclosed.
Texas intermediary brokerage guide Use it when one broker is asked to work both sides.
Broker and sales agent supervision Use it for the supervision side of broker responsibility.
Standards of conduct and discipline Use it to connect duties to TREC enforcement.
TRELA Chapter 1101 guide Use it for the statutory backbone.

Frequently Asked Questions

What are a Texas broker's minimum duties to a client?

A broker who represents a client must put the client's interests above all others including the broker's own, inform the client of material information about the property or transaction, answer the client's questions and present any offer or counteroffer, and treat all parties honestly and fairly. These four minimum duties appear on the IABS notice and are required by law.

Can a client waive the minimum duties in Texas?

No. A representation agreement can limit the scope of services the broker provides, but it cannot waive the minimum duties owed to the client. The duties are required by TREC rules and Texas law and stay in place even under a limited service agreement.

Does Texas have a minimum services law?

Texas does not let a client sign away the broker's statutory duties, which functions as a minimum duty floor. At the same time, the specific services a broker performs are negotiable and defined in the representation agreement. The exam tests both halves: scope is flexible, minimum duties are not.

What does a Texas agent owe a party they do not represent?

Honest and fair treatment, plus the disclosures required by law. A license holder who does not represent a party does not advocate for that party, but still cannot treat them dishonestly or unfairly. Texas Occupations Code 1101.558 also requires a license holder who represents a party to disclose that representation at first contact.

Is the broker or the sales agent responsible for the duties?

The broker holds the brokerage relationship with the client and remains responsible for the brokerage and the authorized acts of sponsored sales agents. A sponsored sales agent acts for that broker and is also directly subject to TREC's fiduciary, information, honesty, competency, and response duties while performing the work. It is not an either-or choice.

Do minimum duties apply to a limited service or discount brokerage?

Yes. A limited service brokerage can narrow the services it performs, but it still owes the minimum duties to the client and the broker still supervises associated license holders. A narrow scope does not erase the duties or the broker's responsibility.

Primary-source verification (September 1, 2026): This article was checked against the TREC Information About Brokerage Services notice (TREC No. IABS 1-2), Texas Occupations Code Sections 1101.557, 1101.558, 1101.562, and 1101.563, TREC Rules 531.2 through 531.4, 535.2, 535.156, and 535.157, and TREC's current 2026 buyer and tenant representation guidance. Broker responsibility and the duties imposed directly on an acting license holder are stated separately.

CHECK YOURSELF

Can you tell a scope limit from a duty waiver?

That single distinction decides a cluster of Texas agency questions. Try a free Texas exam question to see how the duty traps are written, then drill the full set in the app. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a 180-hour pre-license course or a pass guarantee.

Try a free Texas exam question

Sources and Methodology

Reverified September 1, 2026. This guide is written for Texas real estate sales agent candidates studying agency duties. It separates two ideas the exam blurs on purpose: the negotiable scope of services and the non-waivable minimum duties required by law. TREC rules and the Texas Occupations Code control the legal statements. The IABS notice supplies the four-duty framework, and TREC's 2026 guidance supplies the limited-service and written-agreement connection.

Use this article for study purposes only. It is not legal, brokerage, agency, compliance, or professional advice. For current official requirements, verify with TREC, the Texas Occupations Code, your sponsoring broker, or a qualified professional before making real-world decisions.

This post is educational exam preparation content for Texas real estate sales agent candidates. It is not legal, tax, financial, brokerage, agency, compliance, insurance, title, closing, or professional advice. For real-world decisions, verify current requirements with the official source or consult a qualified licensed Texas professional.