Legal FAQs for REALTORS® — Professional Standards
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Legal disclaimer

My sister is looking for a new home, and I'm acting as her buyer's agent. Am I required by TREC rules or the Code of Ethics to disclose to the seller that the buyer is my sister? (Updated Jan. 9, 2015)

Yes. Article 4 of the Code of Ethics requires that you disclose to the seller or the seller’s agent your true position when acquiring any ownership interest in property or presenting offers for yourself, any member of your immediate family (which includes siblings), members of your firm, or any entities in which you have any ownership interest.

In addition, when you are selling property you own or in which you have an interest, the Code of Ethics requires you to reveal your ownership or interest to the buyer or buyer’s agent in writing.

These disclosures are required to be in writing prior to the signing of any contract.

TREC rules only require that you disclose your licensee status in writing to a seller when you are acquiring property on your own behalf, on behalf of a business entity in which you own more than 10%, or on behalf of your spouse, parent, or child.

It is probably a good idea to disclose your relationship with any principal to the other party to a transaction even if such a disclosure is not required by TREC or the Code of Ethics. Disclosure can help eliminate complaints or criticism and can increase respect for REALTORS®.


Legal Disclaimer: The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on TexasRealEstate.com. Any legal or other information found here, on TexasRealEstate.com, or at other sites to which we link, should be verified before it is relied upon.

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