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

Which of the following is NOT a duty a broker owes to their client?

1. Obedience

2. Self-dealing

3. Confidentiality

4. Honesty

The correct answer is: Self-dealing

The relationship between a broker and their client is built on a foundation of trust and fiduciary duties, which include several obligations that the broker must uphold to their client's best interests. Among these duties, obedience, confidentiality, and honesty are all essential components. Obedience refers to the broker's requirement to act according to the client's instructions, provided those instructions are legal and ethical. Confidentiality protects the client's private information and ensures that sensitive details are not shared without permission. Honesty emphasizes the need for the broker to provide truthful and accurate information. In contrast, self-dealing is not a duty owed to the client; it indicates a conflict of interest. When a broker engages in self-dealing, they prioritize their own interests or profits over their client's needs, potentially compromising the client's position. This unethical practice is contrary to the fiduciary responsibilities expected of a broker, which is why it is not recognized as a duty owed to a client.