Canon of Fidelity in Texas Real Estate

The Texas Real Estate Commission has established the Canons of Professional Ethics and Conduct as a mandatory code of behavior for all real estate license holders. The very first canon, Fidelity (Rule §531.1), governs the core agency relationship.

Why This Rule Exists

Fidelity ensures that the client-agent relationship is built on complete trust and fiduciary duty. It prevents agents from self-dealing or acting in their own interest (e.g., trying to buy a property secretly to flip it, without disclosing their licensed status).

The Exam Trap

A common test trap is knowing whose interest the agent must represent. Sponsoring sales agents often believe they must satisfy all parties in a transaction equally. However, under Fidelity, your sole loyalty is to your client (the principal who hired you). While you must treat all other parties with honesty and fairness (Integrity), you must prioritize your client’s interests above everyone else’s—including your own.

Worked Texas Example

Scenario: Agent Frank is representing a buyer for a home in Dallas. The listing agent offers Frank an unofficial $5,000 cash bonus “outside of escrow” if Frank can convince his buyer to pay full price without asking for roof repairs. Outcome: Frank must refuse and disclose this immediately to his client. Accepting the bonus or pushing the buyer to pay full price to secure a personal bonus would be a severe violation of TREC Rule §531.1 (Fidelity).