Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Which of the following categories is part of the general fiduciary duties owed by a broker?

1. Transparency

2. Good faith

3. Market analysis

4. Property appraisal

The correct answer is: Good faith

The category that aligns with the general fiduciary duties owed by a broker is good faith. This fiduciary duty encompasses the obligation of the broker to act honestly, with loyalty, and in the best interests of their clients. Good faith is essential in building trust between brokers and their clients, as it ensures that the broker is committed to protecting the client's interests throughout the transaction process. In real estate, acting in good faith means providing clients with disclosures, honest communications, and diligent effort in representing their needs, all of which are foundational to the fiduciary relationship. This duty is a fundamental principle that underpins many aspects of a broker's responsibilities in Texas and other jurisdictions. While transparency may also be an important concept in real estate transactions, it is a more specific practice rather than a foundational fiduciary duty. Market analysis and property appraisal, while critical functions of a broker, relate more to specific services provided rather than to the overarching responsibilities embodied in fiduciary duties.