TREC tEST

The maximum penalty that the Commission may assess is

$5,000 for each violation.

How long does a claimant have to file a complaint based on Title VIII with the HUD Office of Equal Opportunity?

1 year

Under the Federal Fair Housing Act, who would not be included under the umbrella of the disabled?

A person abusing controlled substances

A real estate broker's license is NOT required under which of the following circumstances?

A person advertises and leases his own properties.

What statement is NOT true about recovering money from the Real Estate Recovery Trust Account?

Agents can recover commissions from the account only if they first obtain a judgment against their client.

Which of the following would be required to be licensed as a real estate agent?

An attorney who sponsors five agents

Which of the following is required to have a real estate license?

An incorporated brokerage firm

What is an appraisal?

An opinion of value for the day the appraisal only

Which of the following is not a protected class under the Federal Fair Housing Act?

Ancestry

Which lien attaches to a property to prevent the transfer of title when there is a pending lawsuit that may affect the title?

Attachment

What type of land use doesn't comply with the zoning restriction for where it is located, but is permitted because it benefits the public?

Conditional use

A brokerage firm works with only buyer-clients. It advertises that it rebates 1% of its commission to its buyer-client. This is

legal.

An example of a document that creates agency at the broker level is commonly referred to as a(n)

listing agreement.

Which of the following is not true of the Federal Housing Administration?

Guarantees mortgage loans

Which of the following is not a feature of an FHA-insured loan?

No MIP insurance

Refusing to make loans based on racial composition of a neighborhood is called:

Redlining

The continuing education requirements for all salespersons include which one of the following?

The CE hours must be completed by the Expiration date for license renewal, or the licensee will be required to pay a fee not to exceed $200 and any fee for late renewal.

At a weekly business meeting, two agents from two different firms discover that they are both trying to list the same house. In the argument that follows, one agent scolds the other for offering to take the listing at 6%. Their broker's policy is to take 7% listings. Which law, if any, have the agents violated?

The Sherman Antitrust law

What is market price?

The price the property actually sold for

The contract forms promulgated by the Texas Real Estate Commission place the risk of loss due to damage to the property or destruction of the property, prior to closing, on whom?

The seller

Which of the following is not part of the secondary market?

Federal Universal Mortgage Association

A person who has been discriminated against under the Civil Rights Act of 1866 must file a lawsuit in which court?

Federal district court

A real estate investment business organized as a trust best describes a/an:

REIT

If a licensed salesperson wishes to change affiliation to a new sponsoring broker, he must do which of the following?

Request that the new broker file a request with the Commission advising them that the broker assumes sponsorship of the salesperson

What is market value?

The price the property is likely to bring in an "arm's length" transaction

If a licensee violates The Real Estate License Act or the Rules of the Texas Real Estate Commission, the Commission is NOT permitted to

conduct an undercover investigation of the licensee.

The Canons of Professional Ethics and Conduct adopted by the commission do NOT include

disclosure.

Payments from the real estate recovery trust account are subject to all of the following conditions and limitations EXCEPT payments

for claims based on judgments against any on licensed real estate broker or licensed real estate salesperson may not exceed $50,000 until the licensee has reimbursed the real estate recovery trust account for all amounts paid.

Once an applicant has completed the application for a salesperson's license,

he has one year to pass the examination.

If the Commission refuses to issue a license to an applicant, the applicant is entitled to a(n)

hearing conducted by the State Office of Administrative Hearings.

In Texas, land that is owned and occupied as the family home may be protected or exempt from forced sale by creditors for judgments for debts. This is referred to as

homestead.

All of the following are true about a subpoena issued by the Texas Real Estate Commission EXCEPT that the subpoena

issued pertains only to the county where it was issued.

All of the following describe the authority and power of the Commission EXCEPT the ability to

submit an appeal bond to enforce provisions of the act.

A licensee advises or counsels a person on the validity or legal sufficiency of an instrument or on the validity of title to real estate. This is known as

the unlicensed practice of law

What is the primary purpose of the Texas Real Estate Commission?

to protect the public from dishonest and incompetent real estate agents

Of the following, which is not an encumbrance?

License

What is a holder in due course?

One who acquires a negotiable instrument in good faith and for consideration

A residential tenant with a month-to-month lease enjoys which leasehold estate?

Periodic tenancy

What is assessment value?

The value the property taxes are based on

Which of the following statements concerning TREC is NOT true?

There are six public-members and three broker-members.

What is the body of law that governs negotiable instruments?

Uniform Commercial Code

The Commission may maintain an action, in the name of the state in district court, to abate and permanently enjoin acts or practices that constitute a violation of the Act. The Commission may recover all of the following EXCEPT

a civil penalty payable to the Commission.

A licensee has the duty to inquire about, make a disclosure related to, or release information related to

a death on the property as a result of a murder.

The Commission is required to initiate an investigation on the basis of a complaint if

a person submits a signed written complaint.

The provisions of the Texas Real Estate License Act do NOT allow for exemptions for

a real estate salesperson licensed in a state other than Texas.

An agent for the buyer does NOT have to inform the buyer of

a suggestion of the lowest price that the buyer should pay based on the list price of the property.

The Texas Real Estate License Act and TREC Rules provide for which of the following?

A minimum of 18 classroom hours as a prerequisite to renewal of an active license every two years after salesperson's apprenticeship education requirements have been met

According to the Texas Real Estate License Act, which of the following is exempt from the provisions of the act?

A partnership or limited liability partnership acting as a broker through a partner who is a licensed real estate broker

The leasehold estate that has a specified termination date best describes a/an:

Estate for years

Which law was specifically made applicable to real estate transactions in 1975, which prohibited a number of false or misleading acts or practices?

Deceptive Trade Practices Act

What event will create an involuntary life estate?

Dower interest becoming cohate

What power does the government exercise when it takes private property for public use?

Eminent domain

During a listing appointment, a salesperson recommends to a young married couple that they take title in the form of joint tenancy with the right of survivorship. The agent:

Has committed the unauthorized practice of law

Requirements for a real estate broker license include all of the following except which statement?

Have at least three years active experience as a Texas real estate salesperson.

An unlicensed property manager can do all of the following except:

Negotiating lease terms

The Texas Real Estate Commission (TREC) is composed of how many members?

Nine

Which of the following is an eligibility requirement for a real estate salesperson's license?

Satisfy the Commission as to the salesperson's honesty, trustworthiness, and integrity.

Which of the following statements about the Texas Real Estate Commission is true?

Six members are real estate broker-members and three are from the public

The members of the Texas Real Estate Commission (commissioners) hold office for how long?

Six years

Which of the following is true concerning the powers of the Commission?

TREC Rules have the same force and effect as law.

The leasehold estate that can be terminated by either party and can not be assigned is:

Tenancy at will

If the broker acts as an intermediary between parties, what is true?

The broker may not disclose that the owner will accept a price less than the asking price, unless authorized (in writing) to do so by the owner.

The Commission may appoint advisory committees to perform advisory functions assigned by the Commission. Which of the following is true regarding these committees?

The committee members may be reimbursed for actual Expenses.

The penalty collected for a violation of the Act by a licensed real estate salesperson is deposited with which?

The real estate recovery trust account

The purpose of the real estate recovery trust account includes which of the following?

The real estate recovery trust account is used to reimburse members of the public who have been financially injured or damaged by the actions of a real estate broker or salesperson.

If a salesperson moves to a new sponsoring broker, which of the following is NOT correct?

The salesperson may not begin working for the new broker until that broker is in receipt of the salesperson's license.

The clause in a real estate contract referring to "property condition" does NOT

provide for a buyer to establish procedures for completion of repairs in the event the Seller does not perform repairs.

Under the Texas Real Estate License Act, persons required to hold a license include a(n)

real estate broker operating out of her home.

The acts and conduct of a real estate salesperson, associated with (or acting for) a broker, are the responsibility of the

real estate broker.

A licensee is asked by the seller to paraphrase a provision regarding a lease, and then insert it into the base contract. The licensee should

refuse to paraphrase any provision but instead use the appropriate promulgated addendum or lease form, or one that is required and provided by a principal to the contract.

If the Commission proposes to revoke a person's license, the person is entitled to

request a hearing conducted by the State Office of Administrative Hearings.