Contracts True/False
The Broker-Lawyer Committee promulgates forms for mandatory use by licensees.
The statement is false. The Broker-Lawyer Committee drafts and edits the forms; the Texas Real Estate Commission promulgates them for mandatory use by licensees.
The rules of the Texas Real Estate Commission are only enforced by brokers in their offices.
The statement is false. The commission has rule-making authority, and the rules of the commission have the full force and effect of law.
A licensee selling her house on her own behalf is required to use TREC-promulgated forms in the transaction.
The statement is false. This is one of the exceptions to the required use of forms promulgated by TREC.
Licensees who complete sales contracts adopted by the Texas Real Estate Commission are not participating in the unauthorized practice of law.
The statement is true. Licensees can complete contract forms adopted by the commission, prepared by an attorney, or prepared by a property owner or attorney, and required by the property owner as long as the licensee is using the contract form for its intended purpose.
Tony and Paul are co-owners of a house. When Tony sells his interest in the house to Paul, Tony is not required to provide a disclosure of property condition to Paul.
The statement is true. The sale from one co-owner to another does not require a disclosure of property condition.
It is illegal for licensees to draft sales contracts for use by their principals in real estate sales transactions.
The statement is true. This is considered the unauthorized practice of law and can result in the suspension or revocation of license for licensees.
Licensees do not have to use TREC-promulgated forms in transactions in which an agency of the United States government requires a different form to be used.
The statement is true. This is one of the four exceptions to the use of TREC-promulgated forms.
What is the purpose of the Texas Real Estate License Act (TRELA)?
Protect the public through regulation of licensed real estate brokerage practitioners, real estate inspectors, residential service companies, and entities offering timeshare interests.
The Texas Property Code requires sellers of most residential property to disclose to the buyer the property's condition through the use of TREC Form OP-H, Seller's Disclosure of Property Condition.
The statement is false. Most sellers are required to provide the property disclosure, but the TREC form is not a required form. The TREC form includes the language required by the Texas Property Code and is available for optional use.
TREC promulgates two forms for mandatory use by licensees.
The statement is false. TREC promulgates many forms for mandatory use by licensees. In addition to the six promulgated contracts, there are many addenda and other forms, although not all of them are required.
