Texas Real Estate Questions:
The designated broker for a business entity owns less than 10% of the entity. What is the maximum amount required by TREC for the business entity's errors and commissions insurance policy ? A) $ 1,000,000 B) $ 750,000 C) $ 500,000 D) $ 250,000
A) $1,000,000
The maximum PENALTY for unlicensed brokerage is a fine of : A) $5,000 B) $1,000 C) $500 D) $200
A) $5,000
How many classroom hours of qualifying education (QE) credits will you have after your first license renewal? A) 270 B) 210 C) 180 D) 150
A) 270
To renew a sales agent's license, the agent must complete at least: A) 90 hours of qualifying core credit and 8 hours of CE credit B) 30 hours of qualifying core credit C) 15 hours of CE credit D) 30 hours of CE credit
A) 90 hours of qualifying core credit and 8 hours of CE credit
When a private citizen files a complaint with TREC, what is required when it is submitted? A) The charges must be submitted anonymously B) After a Commission hearing, the Enforcement Division recommends the appropriate charges against the agent. C) The complaint must be made submitted in writing and signed by the complainant D) After a complaint is brought to Enforcement Division of the Commission, the license is on probationary status
C) The complaint must be made submitted in writing and signed by the complainant.
What is the subject of Form CN 1-2? A) The notice of disclosure as an agent and principal for real estate consumers B) The notice provides instructions and procedures for real estate consumers to file discrimination complaints under the TDTPA. C) The form states that real estate firms are licensed and regulated by TREC and any complaints or inquires should be directed to the Commission D) The form provides contract information for real estate consumes in residential real estate transactions and real estate clients in commercial real estate transactions
C) The from states that real estate firm are licensed and regulated by TREC and any complaints or inquires should be directed to the Commission
A non-resident broker may be paid a commission be split when the: A) broker conducted the transaction from the state in which they are licensed B) broker has dual residency C) transaction amount is under $500,000 D) commission is under $3,000
A) broker conducted the transaction from the state in which they are licensed
Which of the following may cause license suspension or revocation? A) advising the buyer to obtain a title insurance policy prior to the effective contract date B) providing an estimate of the seller's net income tax due C) advising the buyer to "take title" with a life estate and designate an heir for the remainder estate D) providing an accurate amount of the seller's capital gains tax
C) advising the buyer to "take title" with a life estate and designate an heir for the remainder estate
When license applicants participate in a real estate transaction, they: A) may be paid a fee after the license is issued by TREC B) are unable to obtain a license for two years C) are subject to a fine and jail term D) may be paid a commission after the license is issued by TREC
C) are subject to a fine and jail term
When complaint is filed an investigation is conducted, who is involved in the investigation? A) sales agent B) broker C) broker and sales agent D) broker, sales agent and co-broker
C) broker and sales agent
Which of the following is NOT required when submitting an application for licensure as a sales agent? A) payment of the application fee B) minimum age of 18 years C) broker sponsorship D) competition of the education requirements
C) broker sponsorship
After a sales agent notifies the commission and the existing broker of a change in sponsorship, the sales agent may practice real estate activities with the: A) new broker receives the new sales agent's license B) sales agent receives the new license and submits it to the broker C) change of sponsorship is submitted to the commission D) change of sponsorship form is submitted to the new broker
C) change of sponsorship is submitted to the commission
When the agent opens a business in a name that is NOT his or her legal name, he or she must file an official Assumed name Certificate with the: A) Commission records in Austin. B) Commission files C) County Clerk D) Membership application for the Realtor Association
C) county clerk
When a real estate sales agent offers property for sale by lottery, the practice is: A) lawful since the adoption of the Texas State Lottery B) prohibited unless authorized by the owner in writing C) grounds for suspension or revocation of a license D) lawful if a real estate lottery license has been issued
C) grounds for suspension or revocation of a license
The actions of a license holder may result in a payment for damages from the Recovery Account on behalf of the licensee. When a consumer files a civil suit against a license holder, the licensee should: A) immediately notify the Commission of the date the suit was filed B) request that the Commission and Broker-Lawyer Committee represent you within ten days C) hire an attorney D) do nothing until the license holder receives notice from the Commission.
C) hire an attorney
The process of combining a principal's funds with an agent's funs is: A) commingling B) escrowing C) accounting D) evading
A) commingling
The commission is authorized to: A) demand the appearance of an unlicensed person for a commission hearing B) promulgated contracts for attorneys C) enact real estate laws in Texas D) revoke the license of an out-of-state broker
A) demand the appearances of an unlicensed person for a commission hearing
Commingling is the practice of: A) depositing earnest money with other funds for the real estate brokerage business B) receiving funds from two brokers C) depositing personal funds with security deposits D) combing escrow money with earnest money
A) depositing earnest money with other funs for the real estate brokerage business
Payments from the Real Estate Recovery Trust Fund: A) for claims a single Texas real estate license holder are limited to $100,000 in the aggregate B) may result in the license holder filing suit for assessed damages from frivolous lawsuits C) are made at the request of a license holder who is unable to satisfy a judgement obtained by a member of the public against the licensee D) for claims against a single Texas real estate license holder are limited to $50,000
A) for claims a single Texas Real Estate license holder are limited to $100,000 in the aggregate
A licensed assistant may: A) host an open house B) cold-call prospective purchasers C) cold-call prospective sellers D) prepare an offer on behalf of the broker
A) host an open house
After a license holder uses funds from the Recovery Trust Account, he or she may be subject to: A) license suspension B) jail time C) fines from TREC D) jail and fines
A) license suspension
A home inspection performed by a licensed inspector is a: A) limited visual survey and basic performance evaluation of systems in a home B) general visual survey and performance evaluation of systems in a home C) limited survey of the systems in a home D) general survey of the system in a home
A) limited visual survey and basic performance evaluation of systems in a home
When an agent advertises property for sale in a magazine, the advertisement must the: A) name of the broker B) name of the agent and the license number for the broker C) license number and detailed information for the agent D) name of the sales agent and the name of the broker
A) name of the broker
May an attorney-at-law who participates in a real estate transaction be paid a real estate commission? A) no. B) yes. C) No, unless the sales price is less than $250,000 D) Yes, real estate licensure is not required, since the person is licensed to practice law
A) no.
Which of the following is cause for license suspension, revocation or disciplinary action? A) offering real estate for sale by lottery B) entering into verbal lease with an option to buy C) writing special provisions in a sales contract D) participating in the sale of real estate with a non-resident broker
A) offering real estate for sale by lottery
The Consumer Protection Notice (CPN) should be: A) placed on display in the reception area of a real estate broker's office B) posted with the broker's and sales agent's licenses for that office C) prominently displayed in an agent's office D) posted with the Fair Housing notice
A) placed on display in the reception area of a real estate broker's office
What is the responsibility of the license holder when the Commission has accessed funds in the Recovery Trust Account to pay a claim on behalf of the license holder? A) repay principal and interest to the Trust Account B) pay the amount due within 30 days C) appeal the decision D) apply for license reinstatement
A) repay principal and interest to the Trust Account
It is legal to split a commission with a non-resident broker: A) when the broker conducted the transaction from out of state B) when the broker has dual residency C) when the transaction amount is under $500,000 D) when the commission is under $3,000
A) when the broker conducted the transaction from out of state
The designated broker for a business entity licensed by TREC owns a 5% interest in the business entity. The designated broker must obtain errors and omissions insurance in an amount of: A) $500,000 per policy B) $1,000,000 per occurence C) $2,500,000 per occurence D) $5,000,000 per policy
B) $1,000,000 per occurence
An individual convicted of a first offense of acting as a real estate agent without a license ma be penalized a MAXIMUM of: A) $4,000 B) $5,000 C) $1,000 D) $2,000
B) $5,000
Commission rules require that an agent notify TREC of any change of address within: A) 6 months B) 10 days C) 60 days D) 30 days
B) 10 days
What is the education requirement for renewal of a broker's license? A) 30 hours of SAE B) 18 hours of CE C) 30 hours of CE D) 25 hours of SAE
B) 18 hours of CE
When the computer at your Pearson Due testing center indicates a passing score on the licensing exam, are you authorized to practice real estate brokerage activities? A) No, you must wait until you receive your license from the Commission B) No, you must wait until your broker has received your license C) Yes, but listings must be taken in the name of an agent D) Yes, until sponsorship by your broker is terminated
B) No, you must wait until your broker has received your license
Which entity establishes record keeping requirements for real estate license holders? A) Local Government B) State Government C) Federal Government D) MLS
B) State Governments
When the Real Estate Recovery Trust Account balance is below $1,000,000 the Commission may assess each license holder: A) a maximin of $17.50; bringing the balance to $1,700,000 B) a maximum of $10; bringing the balance to $1,700,000 C) no more than $10; bringing the balance to $1,000,000 D) no more than $15; bringing the balance to $1,000,000
B) a maximum of $10; bringing the balance to $1,700,000
A home inspection must be conducted: A) by a standard real estate inspector B) and prepared with the promulgated Standard inspection Report Form C) within the physical and limited systems in a home D) within the general survey of the systems within a home
B) and prepared with the promulgated Standard inspection Report form.
Statutory laws passed by the Texas Legislature: A) set precedent for future court decisions B) authorize administrative agencies to carry out provisions of the law C) are not designated for penalties and violations assessed against an agent D) designate the civil penalties and punitive damages enforced and collected by TREC
B) authorize administrative agencies to carry out provisions of the law
A commission split can be paid to a non- resident broker when the: A) broker has dual residency in Texas and another state B) broker conducted the transaction from outside the state boundaries of Texas C) transaction amount is under $500,000 D) the commission is under $3,000
B) broker conducted the transaction from outside the sate boundaries of Texas
When a decision of the Commission involves the renovation of licensure privileges, where may the license holder appeal the decision? A) TREC B) district court C) county court D) Texas Attorney General
B) district court
When a license holder fails to comply with a subpoena, the Commission may: A) revoke the original subpoena and file a new writ against the sponsoring broker B) enforce the subpoena through the Texas Attorney General C) refuse to renew the individual's license D) order the appropriate county sheriff to place the person in jail
B) enforce the subpoena through the Texas Attorney General
The requirement that you place the client's interests above your own interests is essential to which section of the Canons of Professional Ethics and Conduct? A) fiduciary B) fidelity C) integrity D) loyalty
B) fidelity
An individual acts as the designated person for a business entity which holds a business entity which holds a business entity license from TREC. The individual is required to: A) have 4 years of active licensure as a broker B) have an active Texas real estate broker license C) be 21 years of age D) complete at least 2 years of CE
B) have an active Texas real estate broker license
When may you list a seller's home for sale? A) immediately after submitting your license application and fee to the Commission B) immediately after your sponsoring broker receives your license C) after passing both parts of the licensing exam D) after finding a sponsoring broker
B) immediately after your sponsoring broker receives your license
When a broker terminates the association and sponsorship of a sales agent, the broker MUST; A) return the sales agent's license to the Commission within 10 days B) immediately return the license to the Commission and immediately notify the sales agent in writing C) return the license to the sales agent and notify the Commission within the 10 days D) have the sales agent apply for an inactive license
B) immediately return the license to the Commission and immediately notify the sales agent in writing
A broker must display the Consumer Protection Notice: A) along with the licenses of all sales agents and Brokers working in the office B) in the broker's place of business C) in the lobby or reception area of any person regulated by TRELA D) along with a Branch Office License
B) in the broker's place of business
A complain against a real estate license holder must be filed: A) on the TREC website B) in written form C) in district court D) with the Attorney General
B) in written form
After funds are paid from the Real Estate Recovery Trust Account on behalf of a license holder, he can be subject to : A) jail time B) license suspension or revocation C) fines from TREC D) jail and fines
B) license suspension or revocation
When an individual engages in a real estate brokerage activity without holding a real estate license TREC: A) has no authority over an unlicensed individual B) may impose a $1,000 fine for each day of unlicensed activity C) may impose a $1,000 fine as well as treble damages D) has authority over an unlicensed individual unless he or she was previously licensed by TREC
B) may impose a $1,000 fine for each day of unlicensed activity
If a sales agent changes companies, what will happen to her listings? A) the listings will terminate B) the listings will continue under the current company C) she can take the listings with her D) the listings turn into open listings
B) the listings will continue under the current company
A real estate license is not required to sell: A) townhomes B) condominiums C) manufactured homes D) existing homes
C) manufactured homes
The active license experience that is required for a broker license applicant is: A) 2 years B) 3 years C) 4 years D) 5 years
C) 4 years
The Commission form known as CN 1-2, the Consumer Protection Notice, must be prominently displayed: A) in the office of each agent B) in the place of business for any sales agent or broker licensed by the Commission C) on the internet website of any person licensed and regulated by TRELA D) along with the TREC Branch Office License
C) on the internet website of any person licensed and regulated by TRELA
When a new broker takes over sponsorship for a sales agent who was previously sponsored by a different broker, the sales agent may conduct brokerage activities under sponsorship by the new broker: A) you fill out the change of sponsorship form B) the Commission receives your change of sponsorship form C) when the request to sponsor information is submitted online with TREC D) your license is displayed in your new sponsors office
C) when the request to sponsor information is submitted online with TREC
It is legal to practice real estate brokerage activities when: A) you receive a letter of congratulations from TREC B) your broker receives a letter of congratulations for TREC C) your broker receives your license D) you receive your license
C) your broker receives your license
Who is NOT required to hold a real estate license? A) an assistant showing property for the agent B) an assistant hosting an open house C) a part-time apartment locator D) a family member who is helping another family member sell a home without compensation
D) a family member who is helping another family member sell a home without compensation
A broker who is NOT a registered property-tax consultant may perform tax consulting services for: A) a duplex B) commercial property C) unimproved land D) a single- family residence
D) a single- family residence
The Real Estate Recovery Trust Account exists to provide financial resources and reimbursement for: A) payments to defendants B) payments to real estate fiduciaries C) protecting the agent from punitive damages D) court judgements against real estate license holders
D) court judgements against real estate license holders
The practice of real estate without a license is a: A) civil suit B) felony C) Class A felony D) criminal offense
D) criminal defense
If an agent is selling her personal property she must: A) list with her sponsoring broker B) provide the seller's disclosure of property condition C) pay a full commission split to her broker D) disclose her status as a license holder
D) disclose her status as a license holder
Which of the following is NOT cause for the Texas Real Estate Commission (TREC) to suspend or revoke a license? A) failure to disclose death due to a defect in the improvements B) commingling other people's money with the license holder's own funds C) failure to provide information to the Commission within 30 days of the request D) failure to disclose the cause of death on a property listed for sale
D) failure to disclose the cause of death on a property listed for sale
When a third party enters into a contract, the broker owes the party: A) care, obedience, loyalty, accounting and disclosure B) the same fiduciary duties as the principal C) something faithful D) honest and fair treatment
D) honest and fair treatment
When a sales agent terminates the sponsorship and association with a broker the sales agent is required to: A) provide written notice within 10 days B) notify the sales agent and the Commission within 30 days C) submit the license for the sales agent to the Commission on inactive status D) immediately notify the broker in writing and immediately notify TREC in writing
D) immediately notify the broker in writing and immediately notify TREC in writing
An attorney represents the buyer and prepares legal documents for the purchase of a property. Is the attorney entitled to payment of a sales commission in addition to legal fees? A) yes B) no C) No, unless previously specified in writing D) yes, a licensed attorney may be paid a commission for the transaction
D) no
Is it permissible for a licensed sales agent to receive commissions from two different brokers? A) Yes, for United States citizens B) Yes, for real estate agents C) yes. D) no.
D) no.
Who may compensate a sales agent? A) an out-of-state broker B) the buyer and seller C) an attorney-at-law D) one broker
D) one broker
The Texas Real Estate Commission (TREC) is responsible for: A) adopting rules and enforcing real estate licensing laws. B) protected the public. C) governing the real estate agencies D) creating license law
A) Adopting rules and enforcing real estate licensing laws
When an active sales agent is NOT under the constraints of SAE education requirements, what type of education is required for license renewal? A) CE B) MCE C) SCE D) QE
A) CE
What commission form is displayed in clear view in all real estate offices? A) Consumer Protection Noice, Forn CN 1-2 B) Equal Housing Opportunity form C) Valid Real Estate sales agent license D) TREC Branch Office License
A) Consumer Protection Notice, Form CN 1-2
In Texas, the real estate license law is administered by the: A) Texas Real Estate Commission (TREC) B) Texas Commission on Human Rights C) Texas Association of REALTORS (TAR) D) Texas Real Estate License Act (TRELA)
A) Texas Real Estate Commission (TREC)
When a real estate sales agent's license EXPIRES, required education and submit payment of the required fees, A) a late renewal application, required education and submit payment of the required fees B) a late renewal application, 90 hours of SAE, and pay the $200 late renewal fee C) required Mandatory Continuing Education and payment of the late renewal fee D) required sales agent's Education and payment of the late deferral renewal fee
A) a late renewal application, required education and submit payment of the required fees
How many hours of CE is a license holder allowed to carry-over to the next license renewal period? A) all B) none C) 18 D) 30
B) none
Which of the following must be included in advertisements by licensed property owners? A) equal housing opportunity B) notice that the property owner is a licensed agent C) property address D) license holder's name and license number
B) notice that the property owner is a licensed agent
When advertising personally owned property for sale, an agent must disclose that the: A) seller is the fiduciary B) owner is the agent C) principal is a client D) client is an agent
B) owner is the agent
When someone who is not a license holder is employed by a broker, he or she can: A) sell houses B) prepare papers C) list houses D) prepare deeds
B) prepare papers
In Texas, the sale of real estate by lottery is: A) authorized for brokers B) prohibited by real estate license holders C) prohibited by sales agents D) authorized for agents
B) prohibited by real estate license holders
In order to apply for a real estate sales license, the education requirement is two 30 hour classes in: A) contract law B) real estate principles C) law of contracts D) promulgated contract forms
B) real estate principles
The action known as canvassing: A) requires a license if the call if the telephone number is public information B) requires a license if the call is made in Texas C) does not require a license if the entire office participates in the canvas D) does not require a license if the entire office participates in the call
B) requires a license if the call is made in Texas
When broker sponsorship for a sales agent is terminated the: A) Board of Realtors and the Commission must be immediately notified B) sales agent must be notified immediately and the license must be immediately returned to the Commission C) sales agent, Commission, and Board of Realtors all must be notified immediately. D) Commission must be notified immediately
B) sales agent must be notified immediately and the license must be immediately returned to the Commission
According to TRELA, an unlicensed assistant is NOT authorized to: A) write offers for the broker. B) solicit exclusive listings from owners. C) prepare CMA's for the broker. D) give details about a property at an open house
B) solicit exclusive listing from owners
When a sales agent leave the sponsorship of a broker, the listings: A) will terminate B) stay with the broker C) go with the sales agent D) expire
B) stay with the broker
When the seller plans to give the sales agent a bonus, rather than a commission, the agent should: A) refuse the bonus B) tell the sponsoring broker C) hide the bonus D) spend the bonus
B) tell the sponsoring broker
Which of the following is the most important part of real estate advertising? A) real estate license number B) the broker's name C) telephone number D) a termination date
B) the broker's name
A rebate may be paid to a consumer/buyer: A) who is a family member B) upon agreement of the parties C) who is an agent in another state D) as long as it is not paid in cash
B) upon agreement of the parties
The Texas Real Estate Broker-Lawyer Committee: A) promulgates real estate contracts B) writes the content for promulgated contracts and addenda C) administers agent complaints D) assists the Enforcement Division with agent complaints
B) writes the content for promulgated contracts and addenda
Renewal of a broker's license is for a period of: A) 1 year and requires 15 hours of CE B) 1 year and requires 30 hours of CE C) 2 years and requires CE education D) 2 years and requires QE education
C) 2 years and requires CE education
To be eligible for a real estate license, an individual MUST: A) be at least 21 years of age B) established competency in a criminal background check C) satisfy the Commissions requirements for integrity D) be a Texas resident for 6 months.
C) satisfy the Commissions requirements for integrity
You want to get a real estate license to: A) sell houses faster B) comply with Texas law C) sell a house for a friend D) refer friends to associates
C) sell a house for a friend
When commission disbursement arrangements have been made, a real estate sales commission may be paid to : A) any licensed person B) a title company C) the agent D) the broker
C) the agent
An applicant for licensure as a sales agent is required to pay a Real Estate Recovery Trust Account fee of: A) $15 B) $25 C) $10 upon receiving their license D) $10
D) $10
When a previous client refers a purchaser to a real estate agent, at the end of the transaction, the person is paid: A) 25% B) 50% C) nothing in consideration D) $50 since they are not licensed
D) $50 since they are not licensed
After a license applicant passes the licensing exam, how long does the agent have to become sponsored by a broker? A) 10 days B) 30 days C) 6 months D) 2 years
D) 2 years
The Texas Real Estate Broker-Lawyer Committee consists of: A) 3 brokers and 6 lawyers. B) 6 brokers and 6 lawyers. C) board certified real estate lawyers and real estate agents D) 6 brokers, 6 lawyers, and 1 public representative
D) 6 brokers, 6 lawyers, and 1 public representative
Before the first renewal of a sales agent's license, how many hours of SAE are required? A) 90 hours of SAE continuing education B) 15 hours of CE credit and 90 hours of core credit C) 30 hours of CE credit D) 90 hours of SAE qualifying education and 8 hours of CE
D) 90 hours of SAE qualifying education and 8 hours of CE
What is the primary purpose of the Texas Real Estate Commission (TREC)? A) Settle Commission disputes between license holders B) Settle Commission disputes between agents and clients C) Protect the public from the activities of the real estate license holders D) Protect the public and consumers of real estate services in Texas
D) Protect the public and consumers of real estate services in Texas
Who may you pay a referral fee? A) friends and family B) non-resident seller C) licensed attorney D) out-of-state broker
D) out-of-state broker
Real estate referral fees may be paid to an out-of-state broker who: A) practices brokerage activities within the state in which they are licensed B) sells property located in another state C) lists property for sale on the internet D) practices brokerage activities within the state in which they are licensed and never within the boundaries of the State of Texas
D) practices brokerage activities within the state in which they are licensed and never within the boundaries of the State of Texas
When is an agent required to provide disclosure of information concerning examination of title to the property by an attorney? A) at the first face-to-face meeting B) upon the first initial contact with another party to the transaction C) prior to the executed contract date D) prior to the effective contract date
D) prior to the effective contract date
What is the purpose of a broker's escrow account? A) compensate the seller when the buyer defaults B) provide leverage for the buyer when the seller defaults C) compensate the seller if the buyer defaults D) protect the parties to the transaction
D) protect the parties to the transaction
A licensed real estate broker may pay a commission to a: A) loan officer B) person who sells cemetery lots C) mortgage broker D) real estate licensed attorney in the State of Texas
D) real estate licensed attorney in the State of Texas
When is an agent required to provide disclosure of information concerning examination of title to the property by an attorney? A) at the first face-to- face meeting B) upon the first initial contact with another party to the transaction C) prior to the excited contract date D) when an offer is signed
D) when an offer is signed