Legal & Compliance — Texas Broker AI

TREC Advertising Rules

TREC's advertising rules apply to every form of marketing — from yard signs to Instagram posts. Non-compliance can result in license suspension.

Required Advertising Elements

Every advertisement — including social media posts, websites, business cards, yard signs, and email signatures — must include: (1) the agent's licensed name as it appears on their TREC license, (2) the name of the brokerage as it appears on the brokerage's TREC license, and (3) the brokerage name must be at least as prominent as the agent's name.

Tip: A social media post advertising a listing without the brokerage name is a TREC violation — even if it's just a casual Instagram story. The rule applies to all advertising, regardless of medium.

Team Names & Advertising

If you operate under a team name, the team name must also include the brokerage name in all advertising. The brokerage name must be at least as prominent as the team name. Team names that could be confused with a brokerage name are not permitted. All team advertising must be reviewed and approved by the broker before publication.

Tip: Create an advertising compliance checklist for your brokerage. Every piece of marketing material — from business cards to Facebook ads — should be reviewed against the checklist before publication.

Do TREC advertising rules apply to personal social media accounts?

Yes. If you post about real estate on your personal social media account — even casually — TREC advertising rules apply. This includes: posting about a listing, sharing a success story, advertising your services, or anything that could be construed as real estate advertising. Your brokerage name must be included. Many agents have received TREC complaints from posts they considered personal and informal.

What are the rules for 'sold' advertising?

You may advertise a sold property after closing. You must include your brokerage name. If you were the buyer's agent on a listing that another agent had, you may advertise your role (e.g., "Represented the buyer") but you may not imply you were the listing agent. Always be accurate about your role in the transaction.

Required Disclosures

Texas law requires specific disclosures at specific times. Missing a required disclosure is a TREC violation and creates liability.

Information About Brokerage Services (IABS)

The IABS form must be provided to all parties at the first substantive communication — before any discussion of real estate terms. "Substantive communication" means any conversation about a specific property, price, financing, or other transaction details. The IABS can be delivered electronically. Keep documentation of when and how it was delivered.

Tip: Failing to provide the IABS at the first substantive communication is a TREC violation. When in doubt, provide it early — there is no penalty for providing it too soon.

Consumer Protection Notice

The Consumer Protection Notice must be displayed prominently in every place of business and on every website. It must be in at least 10-point type. If you do not have a physical office, it must be displayed on your website. This notice informs consumers of their rights and how to contact TREC.

What disclosures are required when I have a personal interest in a transaction?

If you are purchasing, selling, or have any financial interest in a property you are representing, you must disclose this in writing to all parties before the transaction. This includes: purchasing a listing you represent, selling your own property, transactions involving family members, and any situation where you have a financial interest beyond your commission. The disclosure must be made before any contract is executed. Failure to disclose a personal interest in a transaction is one of the most serious TREC violations. It can result in license revocation and civil liability. When in doubt, disclose and document.

Agency Representation

Understanding and properly explaining agency relationships is fundamental to TREC compliance and client protection.

Types of Agency in Texas

Texas recognizes three types of agency relationships in real estate: (1) Seller's Agent — represents the seller exclusively, owes fiduciary duties to the seller, (2) Buyer's Agent — represents the buyer exclusively, owes fiduciary duties to the buyer, and (3) Intermediary — represents both parties in the same transaction with written consent from both.

Fiduciary Duties

As a seller's or buyer's agent, you owe your client the following fiduciary duties: Loyalty (put client's interests first), Confidentiality (protect client's confidential information), Disclosure (disclose all material facts), Obedience (follow lawful instructions), Reasonable care (exercise professional competence), and Accounting (account for all funds).

Tip: Document your agency relationship in writing at the beginning of every representation. A signed listing agreement or buyer representation agreement is your evidence of the relationship.

Intermediary Relationships

Intermediary is one of the most misunderstood concepts in Texas real estate. Getting it wrong creates serious liability.

When Intermediary Applies

Intermediary occurs when a brokerage represents both the buyer and the seller in the same transaction. This can happen when: a buyer represented by your brokerage wants to purchase a listing held by your brokerage, or when two agents in the same brokerage represent opposite sides of a transaction.

To act as intermediary, the broker must: (1) obtain written consent from both parties in their respective representation agreements, (2) appoint separate agents to work with each party (if applicable), and (3) ensure that neither appointed agent discloses confidential information from one party to the other.

Tip: The intermediary relationship is governed by Texas Real Estate License Act Section 1101.559–1101.561. Failing to properly establish intermediary in writing before the transaction begins is a TREC violation. When a potential intermediary situation arises, notify your broker immediately.

Script — Explaining Intermediary to Clients

"I want to make sure you understand something important. The buyer who is interested in your home is also represented by our brokerage. This is called an intermediary relationship. What this means is that our brokerage will represent both of you, but I will be appointed to work with you, and a different agent will be appointed to work with the buyer. Neither of us can share your confidential information with the other party. Do you have any questions about this? And I'll need your written consent to proceed this way."

Fair Housing

Fair Housing compliance is not optional. Violations carry severe penalties and can end a real estate career.

Protected Classes Under Federal & Texas Law

The federal Fair Housing Act prohibits discrimination based on: race, color, national origin, religion, sex, familial status, and disability. Texas law adds additional protected classes. Discrimination can occur in: advertising, showing properties, making offers, setting terms, refusing to negotiate, and steering buyers toward or away from certain neighborhoods.

Tip: Steering — directing buyers toward or away from neighborhoods based on protected class characteristics — is a Fair Housing violation even if the buyer does not complain. It can result in federal investigation, significant fines, and license revocation.

Fair Housing in Advertising

All advertising must be reviewed for Fair Housing compliance. Prohibited language includes: references to the racial, ethnic, or religious composition of a neighborhood, language that implies a preference for or against any protected class, and descriptions that could be interpreted as steering. When in doubt, describe the property — not the neighborhood demographics or the "type" of buyer you're looking for.

Tip: If a client asks you to discriminate — "Don't show it to families with children" or "I only want buyers from [country]" — you must refuse and explain that you cannot comply with discriminatory instructions. Document the conversation and notify your broker.

Social Media Compliance

Social media creates unique compliance risks that many agents underestimate. Every post is a public record.

TREC Rules on Social Media

All TREC advertising rules apply to social media: brokerage name must appear, agent's licensed name must appear, and the brokerage name must be at least as prominent as the agent's name. This applies to: Facebook, Instagram, TikTok, YouTube, LinkedIn, X (Twitter), and any other platform where you post real estate content.

Content That Creates Liability

Social media posts that create legal exposure include: market predictions that could be construed as investment advice, statements about neighborhood demographics, testimonials that violate FTC guidelines, before/after comparisons that imply guaranteed results, and any content that could be perceived as discriminatory. When in doubt, keep posts factual and property-focused.

Tip: Screenshots last forever. Assume that everything you post on social media will be seen by TREC, a judge, and your client's attorney. Post accordingly.

Documentation & Record Retention

Proper documentation is your best defense against complaints, disputes, and litigation. TREC has specific record retention requirements.

What to Document

Document every significant communication and decision in a transaction: all offers and counteroffers, all amendments, all disclosures and when they were delivered, all inspection reports, all correspondence with clients and other agents, and all instructions from clients (especially unusual ones). If it's not in writing, it didn't happen.

Tip: Follow up every significant verbal conversation with a written summary sent to the client. "Per our conversation today, you have instructed me to [action]. Please confirm this is correct." This creates a paper trail and prevents misunderstandings.

TREC Record Retention Requirements

TREC requires brokers to maintain transaction records for a minimum of 4 years from the date of the transaction. Records must be available for inspection by TREC upon request. Records can be maintained electronically as long as they are accessible and legible. The broker is responsible for maintaining records for all agents in the brokerage.

Tip: The 4-year retention requirement is a minimum. Many attorneys recommend retaining records for 7 years due to the statute of limitations for fraud claims. Consult a Texas real estate attorney for guidance specific to your situation.

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TREC Advertising

I posted a listing on Instagram and forgot to include my brokerage name. I got 200 likes before I noticed. What should I do?

Texas Broker AI — Instant response

First — don't panic, but do act quickly. Here's what to do:

Immediate steps:

Delete or edit the post immediately to add your brokerage name. Instagram allows you to edit captions.
If the post has been up for more than a few hours and has significant engagement, note the date and time you corrected it.
Notify your broker of record about the error — they need to know, and it's better coming from you.

Is this a TREC violation? Technically yes — TREC advertising rules require the brokerage name on all advertising, including social media. However, TREC typically investigates violations when a complaint is filed. A quickly corrected, isolated error is very different from a pattern of non-compliance.

Prevention going forward:

Create a social media template with your brokerage name and license number pre-populated
Add a compliance checklist to your posting workflow: "Does this post include my brokerage name?"
Consider using a scheduling tool that requires you to confirm compliance before posting

Document the correction with a screenshot showing the updated post and the date/time.

General brokerage guidance — not legal advice. Consult a licensed Texas real estate attorney for legal matters.

Fair HousingA seller told me 'I only want to sell to a family, not investors.' Can I follow that instruction?
Agency DisclosureA buyer called me about my listing and wants to see it. When do I give them the IABS form?
Record RetentionA transaction fell apart 3 years ago and the buyer is now threatening to sue. What records should I have?

These are sample responses. Your subscription gives you unlimited questions on this topic and all others — available 24/7.