C1 S8: Unit 1 TRELA: The Basics of the License Law and Subchapters A ‒ E

NOT required to hold a real estate license, therefore TRELA requirements do not apply to these individuals...

1. A Texas attorney 2. A public official conducting official duties 3. A licensed auctioneer conducting the sale of real estate only 4. Someone authorized to conduct a real estate transaction under a power of attorney, court order, will, or other written trust instrument 5. An owner's employee who sells structures and the land on which those structures are located, if that owner has built those structures in the course of his business 6. The on-site manager of an apartment complex The owner or owner's employee who leases the owner's real estate (improved and unimproved real estate) 7. Any transaction involving the sale, lease, or transfer of a cemetery lot or a mineral or mining interest in real property 8. Any transaction involving the management or lease or a hotel/motel 9. Any transaction involving the sale of real property under a deed of trust or other contract liens

Jameson is the on-site manager of an apartment property in Texas. Which of the following statements is true of her situation? A. She isn't required to have a real estate certificate or license. B. She must hold a real estate broker license. C. She must hold a real estate certificate of registration. D. She must hold a real estate sales agent license.

A. She isn't required to have a real estate certificate or license.

What was the name of the first law regulating real estate brokerage in Texas, which was originally passed in 1939? A. Texas Real Estate Dealers Act B. The Lone Star State Property Code C. TREC's Rules and Regulations D. TRELA

A. Texas Real Estate Dealers Act The first law established to regulate real estate brokerage in Texas was the Real Estate Dealers Act. TRELA came along 16 years later.

Claire Champlain, a broker at The Best Nest Realty Group, has organized a team within her firm. Which of the following names that she's considering would meet Texas requirements for team names? A. Team Champlain Realty B. Associates Hometown Property "Champs" C. Claire's Nest Is the Best Brokerage D. Claire's Brokerage Team

B. Associates Hometown Property "Champs" Acceptable words in team names in Texas include "property," "real estate," "homes," and "realty."

Prohibited words for Texas team names include

Brokerage," "company," "associates," or similar words.

Which of the following can hold a broker's license in Texas? A. A brokerage firm only B. A person only C. A person or an entity D. A sales agent with three years of experience

C. A person or entity

Texas resident Craig would like to sell his home himself. What is the minimum real estate license he must possess? A. Broker B. Certificate C. None D. Sales agent

C. None

Travis is helping out his friends, but will not be compensated in any way. Which of these actions can he perform for his friends? Negotiate the exchange of real estate

Can perform

Travis isn't currently licensed. Which of these actions can he perform for his friends? List his friend's condo for sale

Cannot perform

Travis isn't currently licensed. Which of these actions can he perform for his friends? Negotiate the exchange of real estate

Cannot perform

What is TREC responsible for?

Charged with passing rules to enforce, interpret, and explain the provisions of TRELA 1. Adopting the rules and establishing the standards for the types of advertising that are permissible in Texas for a license holder who acts as a residential rental locator 2. Maintaining a registry of real estate certificate holders in Texas 3. Designing and adopting the TREC seal 4. Adopting and enforcing rules necessary to administer Chapters 1101 and 1102 5. Establishing standards of conduct and ethics for real estate license holders 6. Ensuring compliance with chapters 1101 and 1102

A business entity only refers to businesses located within the state of Texas. True or False

False A business entity is either a domestic entity or a foreign entity.

Acceptable words in team names include

"Property," "real estate," "homes," and "realty."

TREC name requirements for licensee's

1. Brokers must have the legal authority to use an assumed business name in Texas before the name may be registered with TREC. 2. An individual broker can have an assumed business name. 3. Texas brokers may use the words "team" or "group" anywhere in their licensed or assumed business names. 4. An associated broker working under another broker may only use that associated broker's licensed name, team name, or alternate name.

A certificate holder is the same as a license holder. True or False

True

A person offering to locate a unit of an apartment building for lease to a prospective tenant is known as a residential rental locator True or false

True

A sub-agent is a license holder who represents a principal through cooperation with and the consent of a broker, and who is not sponsored by or associated with the principal's broker. True

True

In most cases, TREC will notify the license holder promptly in writing once a complaint is received. True or false

True Unless TREC has deliberated and decided against it, it will notify the license holder who is subject of a complaint, promptly and in writing, that they are being investigated.

Texas real estate license is required for....

1. Negotiating or agreeing to any commission, commission split, management fee, or referral fee 2. Discussing the attributes or amenities of a property, under any circumstances, with a prospective purchaser or lessee. 3. Discussing the terms and conditions of the real property offered for sale or lease with the owner of the property. 4. Collecting, receiving, or holding deposit moneys, rent, other moneys, or anything else of value received from the owner or lessee of the real property or from a prospective purchaser or lessee. 5. Providing owners of real property, or prospective purchasers or lessees, with any advice, recommendations, or suggestions as to the sale, purchase, exchange, or lease of real property to be listed or real property presently available for sale or for lease. 6. Holding herself out in any manner, orally or in writing, as being licensed or affiliated with a particular company or real estate broker as a licensee. 7. Contacting the public concerning the availability of real estate brokerage services unless an inquiry about a specific property is immediately referred to a licensee.

The commission must maintain a file on each complaint that it receives. Each complaint must contain certain information, including _______. A. A description of the person making the complaint B. The age of the person making the complaint C. The occupation of the person making the complaint D. The subject matter of the complaint

D. The subject matter of the complaint

An unlicensed assistant may perform only the following duties on behalf of a licensee....

1. Have keys made for company listings. 2. Write and place ads, subject to the licensee and supervising broker's review and approval. 3. Prepare flyers and promotional information for the licensee and supervising broker's approval. 4. Answer the telephone and forward calls to a licensee. 5. Submit listings and changes to a multiple listing service. 6. Follow up on loan commitments after a contract has been negotiated. 7. Secure documents (public information) from the courthouse, public utilities, etc. 8. Act as a courier service to deliver documents, pick up keys, etc. 9. Schedule appointments for a licensee to show a listed property. 10. Accompany a licensee to an open house or showing for security purposes or to hand out pre-printed materials or to place signs on the property. 11. Type contract forms at the direction of, and for approval by, the licensee and supervising broker. 12. Compute commission checks. 13. Arrange the date and time of home, termite, and well/septic inspection, mortgage application, pre-settlement walk-through, and settlement. 14. Assemble documents for closing.

Activities an Unlicensed Assistant Can't Perform

1. Sell, purchase, rent, lease, auction, or exchange real estate, or offer to take any of these actions. List—or attempt, offer, or agree to list—real estate for sale, lease, or exchange. 2. Negotiate—or attempt, offer, or agree to negotiate—the sale, listing, exchange, purchase, or lease of real estate. 3. Prepare promotional materials or ads without the review and approval of the licensee and supervising broker. 4. Show properties. 5. Answer any questions regarding listings, title, financing, closing, etc. 6. Discuss or explain a contract, listing, lease, agreement, or other real estate documents with anyone outside the brokerage. 7. Be paid for performing a licensed real estate activity, such as a percentage of commission, or any amount based on listings, sales, etc.

Penalties for performing acts of real estate brokerage without a license

1. Violation is a misdemeanor and is punishable by an administrative penalty of up to $5,000 per violation 2. Liable to the state for a civil penalty of a minimum of the amount of money received (in commission from that unlicensed activity) up to more than three times the amount of money received

What names must be registered with TREC before they can be used in advertisements?

1. licensed names 2. team names 3. alternate names The following parties are responsible for registering these names: 1. Assumed business name: Broker 2. Team name: Broker 3. Alternate name: Individual license holder

What does TREC membership consist of

9 members 6 - Licensed brokers, full time for at least 5 years 3- Members of public - All appointed by government and must be qualified voters. - Consist of 6 year terms with three member terms expiring Jan. 31 of each odd year

What is a Broker Associate License

A licensed real estate broker who may perform the acts of a broker but chooses to work under the name and supervision of a licensed broker. Responsibilities of an individual holding a broker associate license include the duty to the broker and duty to the public to act with honesty and competency.

Jerome, a real estate licensee, works independently without being supervised by another broker. That means that he is licensed as _______. A. A broker B. A broker associate C. A broker associate with at least five years of experience D. sales agent

A. A broker Only one type of license allows the ability to work independently, and that's the broker license

TREC must notify consumers of their right to file a complaint against a licensed sales agent, broker, or easement or right-of-way agent by which of the following means? A. By displaying it in a readily noticeable location in each place of business the brokers maintain B. By mailing a quarterly notice to all residents living in the state of Texas C. By making public service announcements on the radio D. By taking out an ad every week in the Sunday newspaper

A. By displaying it in a readily noticeable location in each place of business the brokers maintain

A person associated with a licensed broker who has less than four years of experience and performs real estate activities under the licensed broker's supervision. A. Real Estate Broker B. Sales Agent C. Broker Associate

B. Sales Agent

Travis is helping out his friends, but will not be compensated in any way. Which of these actions can he perform for his friends? Research schools, crime rates, and other statistics about several neighborhoods

Can perform

Travis is helping out his friends, but will not be compensated in any way. Which of these actions can he perform for his friends? Schedule showings for properties

Can perform

Travis is helping out his friends, but will not be compensated in any way. Which of these actions can he perform for his friends? Search the Internet and drive the streets to locate properties for sale

Can perform

Travis isn't currently licensed. Which of these actions can he perform for his friends? Schedule showings for properties

Can perform

Travis isn't currently licensed. Which of these actions can he perform for his friends? Search the Internet and drive the streets to locate properties for sale

Can perform

Mac isn't licensed, but he's helping his sister, Katie, find a new house. Which of the following activities can Mac legally do? A. Negotiate the purchase price of Katie's new home for a $1,000 flat fee B. Negotiate the sale of Katie's old house for a $200 restaurant gift card C. Receive compensation from Katie for locating a new house D. Search real estate sites and resources for Katie to find available homes in the area

D. Search real estate sites and resources for Katie to find available homes in the area

For which of the following reasons could TREC reject a Texas broker application? A. The applicant didn't provide fingerprints to the Texas State Police within six months from the application filing date. B. The applicant didn't provide four professional references to TREC within one year form the application filing date. C. The applicant didn't satisfy the education requirement within one week of the application filing date. D. The applicant didn't satisfy the experience requirement within one year from the application filing date.

D. The applicant didn't satisfy the experience requirement within one year from the application filing date. The applicant didn't satisfy the experience requirement within one year from the application filing date.

Broker's responsibilities

Ensuring all licenses associated with the broker remain active (i.e., that all licensees meet license renewal requirements, including adhering to continuing education requirements).

TREC will investigate complaints in the order in which they are received from consumers. True or false

False. TREC will prioritize complaints received by consumers based on a number of risk factors, including the risk of immediate harm to a consumer. TREC will investigate all complaints, even when they are anonymous.

TREC can hire employees as it sees fit in order to enforce the provisions of TRELA and the rules and regulations that TREC serves to protect. True or false

True TREC has the authority to hire whomever it deems necessary in order to carry out the rules it sets forth

Employees are not compensated for their roles within the commission. It is seen as a privilege to be a part of the commission. True or false

True TREC is responsible for determining the salaries of its employees

"The commission" refers to TREC. True or false

True Texas Real Estate Commission is also known as TREC.

A TREC complaint must be filed within four years of the date an incident which is the subject of a complaint occurred. True or false

True The commission will not investigate complaints submitted after the fourth year after the date an incident occurred.