Aceable Agent
Reasonable Care
-standard is based on what most agents would do
The National Association of REALTORS® Code of Ethics consists of:
A preamble and 17 articles
Which of the following statements accurately describes the basic issues involved in the Jones v. Mayer Co. case?
A real estate company refused to sell a home because of the prospective buyer's race and was found guilty of violating the Civil Rights Acts of 1866
How often must a real estate license be renewed?
A real estate license must be renewed every two years.
Which of the following is NOT one of the unethical or illegal activities performed by Ulysses?
Acting as a real estate agent without a license
Why should real estate agents refrain from giving legal advice to clients?
Agents aren't licensed to give legal advice and if they do, they could be held liable
ADA
Americans with Disabilities Act
Which of the following is an example of misrepresentation?
An agent thinks there are hardwood floors beneath the carpet of a property and implies to the buyer that there are, when in fact, there are not.
What is a protected category according to Texas fair housing laws, but not national ones?
Ancestry
Special Agency
Broker & Client
General Agency
Broker & Sales Agent
Universal Agency
Child & Parent or Executor of will
Which was the first housing discrimination protection act?
Civil Rights act of 1866
HUD
Department of Housing and Urban Development
In an agency relationship, the agent owes the principal the fiduciary duties of loyalty, obedience, accounting, confidentiality, reasonable care, and what else?
Disclosure
If a lender refuses to make Harry a 30-year mortgage just because Harry is 85 years old, they will have violated:
ECOA
ECOA
Equal Credit Opportunity Act
Ulysses did nothing wrong in instructing the mortgage company to take money out of Sam's account.
FALSE
FHA
Fair Housing Act
Families Crave Resorts Not Small Damp Ramps
Familial Status
HMDA
Home Mortgage Disclosure Act
A tenant comes to a property manager asking to put in shower bars to accommodate their disability. When they property manager informs the landlord, the landlord balks, because the tenant is not a wheelchair user. What should the property manager do? Choose the BEST option.
Inform the landlord that not all disabilities are visible, and warn them they could be violating the Fair Housing Act by refusing accomodations
IABS
Information About Brokerage Services
OLD CAR
Obedience (if legal)
How long does person who believes that they have been injured by the discriminatory practices of a real estate license holder have to file a complaint with HUD?
One Year
What is one important difference between REALTORS and other practitioners?
REALTORS are held to a higher standard than the law by the NAR Code of Ethics
Fair Housing Act Protected classes
Race
You are working with a Black buyer, Tom, and you decide to show him homes in a neighborhood with a high Black population. This illegal act is known as:
Steering
DTPA
Texas Deceptive Trade Practices-Consumer Protection Act?
What federal act was passed to help eliminate redlining?
The Community Reinvestment Act
Under the ECOA, it is legal for a lender to ask if a borrower is separated.
True
Since Ulysses said he would take care of closing, did he technically do anything wrong with Sam's money?
Yes, agents should never hold onto money that does not belong to them.
Which of the following phrases would be considered discriminatory if used in an advertisement?
"Christian neighborhood"
A license holder is facing three separate complaints. The license holder must pay $45,000 for the first complaint, $62,000 for the second complaint and $21,000 for the third complaint. What is the amount that the Commission will pay on the license holder's behalf?
$100,000
A license holder is facing three separate complaints. The license holder must pay $45,000 for the first complaint, $62,000 for the second complaint and $21,000 for the third complaint. What is the amount that the Commission will pay on the license holder's behalf?
$100k
If a homeowner files a homestead exemption for reduced ad valorem taxes, the state of Texas requires the school district to supply an exemption value of $______.
$25,000
Single homeowners are exempt from paying taxes on up to ____ of the capital gains from the sale of their home every ___ years.
$250,000 two years
An administrative penalty cannot exceed:
$5,000.
An administrative penalty cannot exceed
$5k
There are also exemptions to the license requirement. These roles do not require a license in order to practice their profession:
-A licensed attorney in Texas
Information About Brokerage Services
-A link to a completed IABS Notice in a readily noticeable place on the homepage of each business website should be provided.
Competency
-It is the obligation of a real estate agent to be knowledgeable as a real estate brokerage practitioner.
Texas Real Estate Commission (TREC)
-Members: 9 (All appointed by the governor and confirmed by at least 2/3 of Texas Senate.)
Who TREC Oversees
-Real estate inspectors 🔎
Executed Contracts
-The property's listing status in the MLS is changed from pending to sold.
Vendee's Liens
-a document declaring a claim from a buyer that the seller has not transferred title to the buyer
Rectangular Survey System
-a more refined version of the longitude and latitude system of mapping with a surveyed grid of meridians, baselines, townships, and ranges to describe a piece of land
Discriminatory Practices
-closely resemble the Fair Housing Laws
Unliateral Contract
-contests, rewards, and commissions are examples
Bilateral Contracts
-creates reciprocal obligations
Mutual Agreement
-discharge can be for any reason if all parties agree
Integrity
-employment of prudence and caution
Bail Bond Liens
-enforceable by a court officer or the sheriff if the accused property owner does not appear in court
Execution Liens
-gives court officers the right to confiscate and sell the debtor's property to satisfy the debt
Equitable Estates
-if another party has an easement on your property
Legal Description
-included in a deed to the property
Parcel
-individual lots combined to make block
Vertical Land Description
-most commonly used when air rights and subsurface rights need specific explication
Restrictions
-outline what someone may not do on their own personal piece of property
Leasehold Estates
-periodic estate
Non-performance due to legal issues
-permissible discharge of a contract to avoid the violation of law
Competency
-stay informed on market conditions affecting the real estate business
Partial Performance
-the party injured by the other party's failure to fully perform can seek legal restitution or discharge the contract
Liens
-use subordination agreements to change the priority
Lot and Block System
-used when parcels of land are divided up into individual lots
Easements
-usually created by an agreement between two parties or out of necessity
Substantial Performance
-when a party performs the majority of the contract's requirements, but not all
Mortgage Liens
-when a person buys a home, the home itself becomes collateral for the loan, so the lender obtains it
Judgement Liens
-when decrees given by courts specify the amount of money owed
If pursuing action through HUD, a complaint must be filed within how long of the alleged violation?
1 year
Four Unities required for joint tenancy
1). Unity of Interest
Within how many days of a move does a broker need to tell the Commission about their change of address?
10
Within how many days of a move does a broker need to tell the commission about their change of address?
10
Within how many days of a move does a broker need to tell commission about their change of address?
10 days
Who is on the Education Standards Advisory Committee?
12 members, including license holders, education members, and a public representative
At what age does a child living with his or her parents no longer qualify for familial status protection under the Fair Housing Act?
18
In what year was the National Association of REALTORS® Code of Ethics first adopted?
1913
Owners of properties built before what year should be concerned about the possibility of lead paint contamination?
1978
After receiving a notice of violation, how many days does a license holder have to request a hearing?
20 days
After how many days will the Commission notify an applicant of their moral determination?
30
After how many days will the commission notify an applicant of their moral determination ?
30
After how many days will the commission notify an applicant of their moral determination?
30
1 township
36 sections
Township lines intersect with range lines to create townships, which are how many square miles?
36 square miles
Township lines intersect with range lines to create townships, which are how many square miles?
36-square-mile
How many square feet are there in an acre?
43,560
1 acre
43,560 square feet
How many square feet are there in an acre?
43.560
1 mile
5,280 feet
How many lawyers are on the Broker-Lawyer Committee?
6
Township lines run west and east, parallel to the baseline. How many miles apart from each other are they?
6 miles
How many lawyers are on the Broker-Lawyer Committee?
6 six
How many acres are there in each square mile (section) in a township?
640
1 section
640 acres = 1 square mile
Examples of legal descriptions of property:
8647 Notting Hill Drive, Berkshire, Colorado 52467
Which of the following is a fixture?
A ceiling fan is an example of a fixture
What is the difference between a client and a customer?
A client has an agency relationship with you or your broker and a customer does not.
What is chattel?
A commonly used term for personal property in the world of real estate
Which of the below is true regarding condominiums and cooperatives?
A condo owner owns a unit, and a co-op owner owns stock in a corporation.
Who is eligible to request that the real estate commission pay out the trust account to a defendant who has lost a case?
A defendant's previous employer
Plat
A drawing of a development used in the lot and block method
Commingling happens when:
A license holder mixes their own money with a client's money.
.
A license holder should point potential buyers to the resources that can help with questions that they shouldn't answer.
As defined in the Texas Real Estate License Act, what is a subagent?
A license holder who represents a principal through cooperation with the principal's broker.
What is a Lis Pendens?
A notice used to inform the public when a lawsuit is filed that affects a specific piece of real estate
Party
A person involved in a contract for a sale, lease or agency.
Which of the following statements accurately describes the basic issues involved in the Jones v. Mayer Co. case?
A real estate company refused to sell a home because of the prospective buyer's race and was found guilty of violating the Civil Rights Act of 1866.
A broker drafting a legal document that transfers an interest in real property could be considered:
A real estate transaction unauthorized practice of law
Which of these best describes a CLUE report?
A report that identifies any insurance claims made on a parcel of real estate in the past five years.
Is "123 Buyer Lane, San Antonio, TX 78216" an adequate legal description? Why or why not?
A street address is not an adequate legal description; it is considered an informal reference. For purposes of legal documents, the exact size and location of a property requires precise measurements and descriptions.
What is a plat and who uses it most often?
A surveyor establishes the plat's dimensions and a developer numbers the lots and
Which of the following is an example of co-ownership?
A timeshare property would be an example of a co-ownership.
An abbreviated history of a property, including info on any transfers, grants, wills, conveyances, liens, and encumbrances is called what?
Abstract of title
According to the Canons of Professional Ethics and Conduct, the IABS notice can be provided to consumers:
According to the Canons of Professional Ethics and Conduct, the IABS notice can be provided to consumers either in person, by mail, or by email.
What does the work " ad valoren " mean?
According to the value
What is the difference between actual and punitive damages?
Actual damages are designed to compensate the claimant.
What is the difference between actual and punitive damages?
Actual damages are designed to compensate the claimant; punitive damages are designed to punish the defendant
What is the difference between actual and punitive damages?
Actual damages are designed to compensate the claimant; punitive damages are designed to punish the defendant.
.
After a license has expired, there is an extra fee for renewal.
Which one of these situations would title insurance protect against?
After purchasing a home and living in it, Terrence is contacted by the heir of a
A listing agreement creates a
Agency relationship
Why should real estate agents refrain from giving legal advice to clients?
Agents aren't licensed to give legal advice and if they do, they could be held liable.
the retirement home
All options possess the characteristic of durability.
and enforceable standards regarding discrimination based on disability?
Americans with Disabilities Act
An abbreviated history of a property, including info on any transfers, grants, wills, conveyances, liens, and encumbrances is called what?
An abstract of title
In addition to detailing the agreement between the broker and the client, the buyer's representation agreement and the listing agreement create what?
An agency relationship
An agent's seller client asks him not to disclose a property defect and the agent complies.
An agent's seller client asks him not to disclose a property defect and the agent complies.
Texas?
An applicant for licensure is required to be 18 years of age or older, a Texas resident, and a citizen of the United
What right does an easement grant?
An easement gives a party the right to use the property owned by another party.
What are the limitations on the amount of property that can be homesteaded in Texas?
An urban property can be up to 10 acres of contiguous parcels, and rural property can be up to 200 acres for a family.
How often will you be formally evaluated in the workplace?
Annually
What must a seller in a PID disclose to a potential buyer?
Any financial obligation
Personal Property
Any unattached movable asset on the property not considered real estate ( land plus improvements )
What is the major difference between assignment and novation?
Assignment is the transfer of parties in a contract. Novation is the exchange of one contract for another.
What type of contract is a real estate sales contract?
Bilateral contract
What is the basic premise of community property?
Both spouses contribute equally to a marriage, and thus both have equal ownership rights to all property acquired during marriage.
Brokerage and TAR ( Texas Association of Realtor require what kind of agreement?
Buyer's representation agreement or listing agreement
What is the name of the report created from a database the insurance companies use to track insurance claims?
CLUE
Which scenario is MOST likely?
Carla's property will be granted an easement by necessity.
What must you have if you wish to sell, buy, lease or transfer an easement or right-of-way?
Certificate
What must a you have if you wish to sell, buy, lease, or transfer an easement or right-of-way?
Certificates
What must you have if you wish to sell, buy, lease, or transfer an easement or right-of-way?
Certificates are necessary to perform transactions with easements or right-of-ways. Be sure to review the revocation rules to make sure you keep yours!
What law ( chapter ) imposes a code of ethics and standard of conduct on members of the commission?
Chapter 572
What law (chapter) imposes a code of ethics and standard of conduct on members of the Commission?
Chapter 572
What law imposes a code of ethics and standard of conduct on members of the commission?
Chapter 572.
Immobility
Characteristic of land stating that land has a particular geographical location that will remain constant, barring, erosion or slow geological changes.
Which of the these is transferred through a bill of sale rather than a conveyance instrument such as a deed or will?
Chattel
What is the BEST way to avoid giving misinformation (and consequently, violating the Texas Deceptive Trade Practices-Consumer Protection Act)?
Cite a source for any information you give a client about a property.
Which was the first housing discrimination protection act?
Civil Rights Act of 1866
property, but instead holds a proprietary lease as a stockholder?
Co-op
The National Association of Realtor's ethical guidelines are known as:
Code of Ethics
What is it called when an agent illegally mixes their money with client money?
Commingling
Who is responsible for informing employees of their conduct expectations and responsibilities?
Commission
Who is responsible for informing employees of their conduct expectations and responsibilities?
Commissioners
Which of the following is an essential element of a valid contract?
Consideration
What form does the Canons of Professional Ethics and Conduct say must be on display in a readily noticeable location in each of the real estate brokers places of business?
Consumer Protection Notice 1-2
What form does the Canons of Professional Ethics and Conduct say must be on display in a readily noticeable location in each of the real estate brokers places of business?
Consumer Protection Notice 1-2`
What is an agreement between two or more parties to either do something or not do something called?
Contract
What is an agreement between two or more parties to either do something, or not do something called?
Contracts
What two documents were sent to TREC by Deb for her claim?
Deb sent the Writ of Execution and Abstract of Judgement along with all other necessary paperwork to TREC.
Who would hold the ownership interest of a co-owner who passed away?
Deceased's name descendants
A person who possesses a broker's license and is responsible for not only their acts but the actions of every license holder in real estate office is called?
Designated Agent
A person who possesses a broker's license and is responsible for not only their own actions, but the actions of every license holder in their real estate office is called a:
Designated Agent
If a lender refuses to make Harry a 30-year mortgage just because Harry is 85 years old, they will have violated:
ECOA (Equal Credit Opportunity Act)
Land that is high demand and low supply is an example of which quality of real estate?
Economic scarcity
Situs
Economic significance of a property location
As a license holder, what could help protect you against mistakes you might make in real estate transactions?
Errors and omissions insurance
Taxpayer Relief Act of 1997?
Every two years
retains the right to sell the property while the broker may market the property as well?
Exclusive agency
A person who is employed to rent and by the owner needs a real estate license
FALSE
A person who is employed to rent land by the owner needs a real estate license.
FALSE
A seller is more likely to want to work with an agent who uses the words "price reduction" rather than "price adjustment."
FALSE
An agent has an agency relationship with their customers.
FALSE
Which of the following actions is NOT grounds for disciplinary action, including revocation or suspension of a license?
Failing to obey an unlawful request is not a violation.
Protected classes in the Fair Housing Act of 1968 include race, color, religion, national origin, sex, disability, and what other category?
Familial Status
If a property owner does NOT pay their taxes, the IRS may put what on their property?
Federal Tax Lien
clients have all the options below EXCEPT:
Filing a formal complaint with TREC
Fixity
Fixed location and can NOT be moved
Will included with homeowners insurance?
Flood insurance policies are always separate policies.
flood?
Flood insurance policies are generally separate policies.
What is the part of a contract stating one or more of the contracting parties must refrain form actions that would usually be legal called?
Forbearance Agreement
If a lender were to waive their legal right to pursue a debt, they have most likely entered into a:
Forbearance agreements
Which of these is a method of disclosing agency?
Giving a party the IABS
Submit answer
Graduate, REALTOR® Institute (GRI)
What does a policy of title insurance NOT do?
Guarantees that the title is good.
When a person passes the Texas exam for real estate, they:
Have met the competency requirement under TRELA
The following circumstances would make the license of a salesperson inactive EXCEPT:
Having a Recovery Fund payment made as a result of an improper transaction
property) or up to 200 acres of rural property?
Homestead rights
What is one instance in which the commission allows license holders to use alternatives to the required, or promulgated, forms?
If the alternative form is prepared by the property owner themselves
What is one instance in which the commission allows license holders to use alternatives to the required, or promulgated, forms?
If the alternative form is prepared by the property owner themselves.
Lot
Individual parcel of land measured and defined by the metes and bounds system
Once all hearings and appeals have been completed, a broker or sales agent will have to start paying what on any owed funds?
Interest
What is one promulgated form that TAR has and TREC does not?
Intermediary Relationship Notice
What is the one promulgated form that TAR has and TREC does NOT?
Intermediary Relationship Notice Form
Scarcity
Is created solely by demand for land in a particular areas. Land is most valuable when it is in short supply and in high demand.
What do trade organizations like the NAR NOT do?
Issue licenses or handle licensing requirements
What rights does a leasehold estate establish?
It establishes a tenant's legal right to use and occupy a property they do not own.
When an offer is made, it can be accepted, rejected, retracted prior to acceptance, countered, or allowed to expire. Until one of those things happens, what is the status of the contract?
It remains open.
Which of these people is most likely to own property as tenants in common?
Jake and Amy, unmarried business partners.
According to the Canons of Professional Ethics, a broker should never:
Knowingly misrepresent a property
Real Property
Land from the surface to the center of the earth and upward into space.
What information does a benchmark provide that a monument does not?
Legal address elevation
An agency relationship is a fiduciary relationship. Which of the following duties and obligations are owed to the principal by the agent?
Loyalty, care, and obedience
Under the ECOA, it is illegal for lenders to discriminate on the basis of:
Marital status
What are important details that could change a customers decision about the property?
Material Fact
Which legal description will likely include the phrase "point of beginning"?
Metes and bounds
What does the integrity portion of the Canons of Professional Ethics charge license holders with avoiding?
Misrepresentation
What is the definition of misrepresentation?
Misrepresentation is an unintentional mistake, written or spoken.
Duplex, triplex, or fourplex residences are all considered _________________ .
Multifamily residences
What is the name of the service that exposes a property to a larger audience of buyers and also offers advantages to sellers, brokers, and buyers?
Multiple Listing Service (MLS
Five components of a valid contract
Mutual Assent
What's the name of the professional organization that created the code of Ethics?
NAR - The National Association of Realtors
What requires a higher standard than ethics laws?
NAR Code of Ethics
What are nolo contendere pleas sometimes referred to as?
No contest pleas
Discriminatory Practices
No real estate license holder shall inquire about an owner of real property which indicates any preference, limitation, or discrimination based on a person's inclusion in a protected class.
.
No, a street address in not an adequate legal description.
If an individual faces civil or criminal liability, does that preclude any disciplinary action from the Texas Real Estate Commission?
No, disciplinary action from the Texas Real Estate Commission does not relieve the
Shane learned that a seller has already signed a listing agreement with another agent in town. Wanting to represent the seller, Shane attempted to convince the seller to terminate their current agency agreement and sign a representation agreement with him instead. Is this legal? Why or why not?
No, it is against TREC rules to try and convince someone to terminate an agreement with another license holder
Shane learned that a seller has already signed a listing agreement with another agent in town. Wanting to represent the seller, Shane attempted to convince the seller to terminate their current agency agreement and sign a representation agreement with him instead. Is this legal? Why or why not?
No, it is against TREC rules to try and convince someone to terminate an agreement with another license holder.
Can an agent assure a purchaser that they will acquire mineral rights with their sale?
No, questions about mineral rights are best left to an oil and gas attorney.
Does the Texas Homestead Act protect a property from federal tax liens?
No, the Homestead Act provides no protection from federal tax liens .
An elderly couple is going to rent their vacant basement for extra income. The couple does not want a family with children. The couple asks their granddaughter, who is a real estate agent, to help them with finding tenants. Is this legal? Why or why not?
No, the couple is not allowed to discriminate against families with children if they are helped by their granddaughter because she is a license holder.
.
No, the seller, broker, or agent may be held liable even without it.
Was Tom right in discouraging his clients from taking the closing documents to an attorney?
No, you should never discourage clients from seeking the advice from an attorney
Can the original offer be reconsidered and accepted by a party after they have already extended a counteroffer?
No. A counteroffer is a rejection of the original offer, therefore, the original offer can
What is the term for when a defendant in a criminal court does not admit they are guilty but still accepts punishment for a crime?
Nolo contendere
What are nolo contendere pleas sometimes referred to as?
Nolo contendere pleas
different spots on the Earth. This contributes to land's:
Non-homogeneity is a lack of uniformity between real estate properties and land.
A homeowner sells her primary residential home and realizes a gain (profit) of $185,000 from the sale. How much tax will this homeowner pay on the capital gains?
None. She is exempt from capital gains up to $250,000 every two years.
What direction do longitude lines, or meridians, run?
North to South, Perpendicular to the equator
Only an owner has the right to use a property.
Only an owner has the right to use a property.
How is timeshare ownership different from other kinds of ownership?
Owners purchase the property but rent it out to generate income.
Which paragraph of the One to Four Family Residential Contract says that buyers can object to something they find in the survey?
Paragraph 6D
Limited" and "general" are the names of the two kinds of what?
Partnership
wrapped in the box, and unattached to the ceiling, what is it considered to be?
Personal property
The National Association of REALTORS® Code of Ethics consists of:
Preamble and 17 Articles
Which one of the following actions is NOT likely to be a violation of the Texas Deceptive Trade Practices-Consumer Protection Act?
Providing a list of professionals to choose from does not violate the law.
What is the name of a district where property owners can make decisions on government projects they will be taxed on?
Public Improvement District (PID)
What is the name of the district where property owners can make decisions on government projects they will be taxed on?
Public Improvement District PID
What should a license holder do when reporting facts in an advertisement?
Quote the source of the information
What is one important difference between REALTORS® and other practitioners?
REALTORS® are held to a higher standard than the law by the NAR Code of Ethics.
Protected Discrimination Category
Race, Color, Religion, Sex,
Texas Real Estate Commission
Regulates the activities of:
When seller receives a counter offer and lets it expire, the seller is?
Rejecting the offer
A father conveys property to his son, but reserves the a life estate for himself. During the fathers lifetime, what interest does the son have?
Remainder
Wesley just bought a house with a creek that flows along the south boundary. He wants to use the water to irrigate his garden. Through which set of rights is he entitled to use this water?
Riparian rights
What is the name for water rights that govern the use of flowing water, like a stream or river?
Riparian rights
TREC's Canons of Professional Ethics and Conduct are:
Rules of Conduct
Net Listing
Seller names the amount they want to receive from sell of property and broker tries to sell it for more.
.
Seller will pay commission to any broker who was the procuring cause for the sale.
What kind of contracts are listing agreements and a buyer's representation agreement?
Service Agreement
If an owner cuts down a tree, it becomes personal property by the act of:
Severance
she removed the candelabras?
Severance
Which of these actions requires a real estate license to legally perform?
Shane helping his friend sell his home for $500.
What type of agency does a broker have with a seller client?
Special Agency
When a broker signs a listing agreement with a seller, what type of agency is MOST commonly created?
Special agency
When a party performs the majority of the contract's requirements but does not perform according to the contract's stipulations it is considered ______.
Substantial performance
When a property is talked about in a meeting or via written communication, that is called:
Substantive dialogue
When a property is talked about via meeting or via written communication, that is called?
Substantive dialogue
If a contract has been breached, and the non-breaching party wants to force the breaching party to do what it says in the contract, what can the non-breaching party do?
Suing for specific performance
12 years to see if they're still needed?
Sunset Act
Bill is married to his second wife, Susan. Bill has a daughter from his first marriage. If Bill dies without a will (intestate), how will their community property be divided?
Susan keeps her half and the daughter gets the other half.
Promulgated contracts are prepared by
TREC
Where did Deb file the paperwork for her claim?
TREC
If an agent closes a sale unaware of hidden water damage to the roof, the agent would be most likely covered by errors & omissions insurance if a lawsuit were to be filed.
TRUE
TRUE
TRUE
TRUE or FALSE: Employees working for a commercial firm do not have to have a real estate license if they are selling property owned by their firm.
TRUE
Which one of the following actions is most likely to be a violation of the Texas Deceptive Trade Practices-Consumer Protection Act?
Telling a buyer you're not sure if a home had ever flooded when you know for a fact that it had.
TCEQ
Texas Commission on Environmental Quality
Chapter 1101 of the Texas Occupations Code is the _____________________.
Texas Federal Real Estate
The Texas Real Estate License Act is Chapter 1101 of the:
Texas Occupation Code
Chapter 1102 of the ______ governs the practice of Texas Real Estate inspectors.
Texas Occupations Code
The Texas Real Estate License Act is Chapter 1101 of the:
Texas Occupations Code
The Texas Real Estate license act is chapter 1101 of ...
Texas Occupations Code
TRELA is a law passed by the Texas Legislature to govern:
Texas Real Estate
TREC
Texas Real Estate Commission
Who enforces the Texas Real Estate License Act?
Texas Real Estate Commission
TRELA is a law passed by the Texas Legislature to govern:
Texas real estate
Which federal act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate?
The Community Reinvestment Act
Who designates a broker member of the Commission to serve as a presiding officer?
The Governor
Who designates a broker member of the commission to serve as a presiding officer?
The Governor
brokerage's website?
The IABS Notice and the Consumer Protection Notice TREC No. CN 1-2
What is the difference between the NAR Code of Ethics and the Canons of Professional Ethics and Conduct?
The NAR Code of Ethics is enforced by NAR; the Canons of Professional Ethics and Conduct are enforced by TREC
What is the difference between the NAR Code of Ethics and the Canons of Professional Ethics and Conduct?
The NAR Code of Ethics is enforced by NAR; the Canons of Professional Ethics and Conduct are enforced by TREC.
What is the name of the professional organization that created the Code of Ethics?
The National Association of REALTORS®
Information About Brokerage Services
The Notice could be delivered by the broker or sales agent, first class mail or overnight common carrier delivery service, in the body of or as an attachment of an email.
The REALTOR® must belong to at least one board in Texas.
The REALTOR® must belong to at least one board in Texas.
Which is TRUE about Article 11?
The REALTOR® must disclose their lack of experience in the field to the client.
Chapter 1101 of the Texas Occupations Code is the _____________________.
The Real Estate License Act
The Sunset Act does not apply to TREC.
The Sunset Act requires the reviews of all state agencies.
Who enforces the Texas Real Estate License Act?
The Texas Real Estate Commission
How does the Real Estate License Act require brokers to provide consumers with information for the purpose of filing complaints?
The broker must display Consumer Protection Notice TREC No. CN 1-2 in each place of business
How does the Real Estate License Act require brokers to provide consumers with information for the purpose of filing complaints?
The broker must display Consumer Protection Notice TREC No. CN 1-2 in each place of business.
What happens when the association of a salesperson and a sponsoring broker is terminated?
The broker returns the sales agent's license to the commission
What happens when the association of a salesperson and a sponsoring broker is terminated?
The broker returns the sales agent's license to the commission.
What does real property have that real estate does not have?
The bundle of rights
Who pays for mortgage title insurance?
The buyer
Which of the following act is NOT necessarily wrong?
The buyer and the seller can both pay the commission
Illiquidity
The difficulty of converting property to cash without less of value.
What is the function of ESAC?
The function of the Education Standards Advisory Committee (ESAC) is to review and revise curriculum standards, course content and instructor certification
Who designates a broker member of the commission to serve as a presiding officer?
The governor
According to the Canons of Professional Ethics, the primary duty of a real estate agent is to represent:
The interests of their client
Real property refers to:
The land and improvements on it plus the set of rights associated with real estate
disability:
The landlord can require the tenant to return the property to its unmodified condition at the end of the lease.
If the Code of Ethics and the law conflict, which takes precedence?
The law
Landlords are required to allow tenants to make modifications to their property in order to accommodate their disability. Who's responsible for paying for these modifications?
The tenant is responsible for paying for these modifications.
Tract
The totality of the property represented on a plat
How can a potential student find the pass rates of real estate education providers?
They are posted publicly online by TREC
How can a potential student find the pass rates of real estate education providers?
They are posted publicly online by TREC.
How do the time requirements for online continuing education classes compare to in-person continuing education classes?
They are the same
How do the time requirements for online continuing education classes compare to in-person continuing education questions?
They are the same.
How much of their sale is taxable capital gain?
They get a $500,000 capital gains tax exclusion, and they made $150,000 in profit, so all of their profit is excluded
required for leases of less than a year?
They must be in writing.
How many tries does an applicant have to pass the state licensing exam?
Three
What is one thing buyers can get to protect themselves against loss if someone attacks their title?
Title insurance
What categories of people are barred from serving on the Commission?
Trade association employees and lobbyists are barred from membership
What categories of people are barred from serving on the commission?
Trade association employees and lobbyists are barred from membership.
What is a trade fixtures?
Trade fixtures are not permanently affixed to an improvement.
Range lines run parallel to the meridian, running north to south.
True
If an agent closes a sale unaware of hidden water damage to the roof, the agent would be most likely covered by errors & omissions insurance if a lawsuit were to be filed.
True: Errors and omissions insurance is a type of insurance that protects against mistakes a license holder might make, such as quoting the square footage of a home incorrectly or failing to disclose an unknown material fact.
Who manages and holds the legal title to a property on behalf of the beneficiary in a trust?
Trustee
In what kind of contract are there TWO parties but ONE promise?
Unilateral
What could cause a federal tax lien to be placed on a property?
Unpaid income taxes
The TCEQ is tasked with regulating which of these things?
Water Rights
Municipal Utility Liens
When a property owner refuses to pay bills for municipal utilities
Which of the following best describes when a broker might act as an intermediary in Texas?
When both the seller and the buyer are clients of the same broker
What is meant by term " Right of Survivorship " ?
When one co-owner dies, their ownership interest is inherited by surviving co-owners.
What is meant by the term "right of survivorship"?
When one co-owner dies, their ownership interest is inherited by the surviving co-owners.
What do freehold estates imply about ownership?
With freehold estates, the individual with interest has some degree of ownership for an undetermined or unspecified (and therefore unlimited) time.
By what time must licensees notify TREC of any change in address?
Within 10 days
Seller Andrea hired Agent Samara to sell her home in a net listing. Samara gave Andrea her opinion of the value of the home, and Andrea insisted she wanted to use the net listing structure. Is it permissible for Samara to sell the home as a net listing? Why or why not?
Yes, because Samara gave Andrea her opinion of the value and Andrea insisted on the net listing, it is legal
Brokerage A charges clients a 6% commission, while Brokerage B charges only 5%. Is this legal? Why or why not?
Yes, brokerages can charge whatever commission they choose. Commissions are negotiable.
Can a license holder renew their expired license if it has been expired for 5 months?
Yes, but they must pay an additional fee equivalent to twice the amount of the renewal fee
Can a license holder renew their expired license if it has been expired for 5 months?
Yes, but they must pay an additional fee equivalent to twice the amount of the renewal fee.
If an applicant fulfills all requirements for licensure but hasn't found a sponsoring broker yet, are they able to get licensed?
Yes, the applicant can receive an inactive license from the commission.
What is a specific lien?
a claim against a particular parcel of real estate
Block
a collection of lots (parcels)
Who is eligible to request that the Real Estate Commission pay out of the trust account to a defendant who has lost a case?
a defendant's previous employer
an owner who is behind on paying their property taxes
a driveway that partially crosses a neighbor's property boundary
Committing a real estate act without a license is what kind of crime?
a misdeamor
Which of the following people can legally practice without a real estate license?
a person selling or renting land or structures for their employer
Which of the following people would need a real estate license?
a person selling their neighbor's home for a fee
Which of the following people would need a real estate license?
a person selling their neighbor's home for a free
The protected class of disability is defined as anyone who has:
a physical or mental impairment that affects the performance of one or more major life activities
a physical impairment that affects the performance of major life activities
a physical or mental impairment that affects the performance of one or more major life activities
a seeing-impaired woman who uses a service dog in a pet-free building
a seeing-impaired woman who uses a service dog in a pet-free building
a transaction where an agent is selling an agricultural property
a transaction where an agent is selling an agricultural property
About how long can you have an expired license but still be eligible to reactivate your license without retaking the state exam?
about 2 years
What is a main function of the Texas Real Estate Commission?
adopt and enforce rules for governing real estate practitioners
Ricky bought a ceiling fan. When he brought it home, it was personal property. Then, he permanently installed it into his ceiling. Now it has become real property. What is this process called?
affixing
client
agent
Agency relationships are generally formed between which two people?
agent and client
What is the space above a parcel of land called?
air lot
Subpoena authority exists to:
allow the commission to bring witnesses to court
In addition to detailing the agreement between the broker and the client, the buyer's representation agreement and the listing agreement create what?
an agency relationship
Without permission, Betsy's neighbor built a fence that extends onto Betsy's property. What is the fence?
an encroachment.
What is a protected category according to Texas fair housing laws, but not national ones?
ancestry
Nolo contendere means that a person was accused of something and was a defendant in a trial:
and will accept the decision of the court without pleading guilty to the charge
When does the information about intermediary brokerage contained in the IABS need to be given to a consumer?
at the first face-to-face meeting where substantive dialogue about a specific property occurs
Why do most brokerages fall within the scope of the ADA, and therefore must be extra careful about accessibility?
because of their location or because they have 15 or more employees
What type of contract is a real estate sales contract?
bi lateral contract
In the recorded plat system, parcels are individual lots that combine to make:
blocks
Who gives out general criminal penalties?
both trec and local govt
What is it called when one or more of the contracting parties either partially or completely fails to fulfill the contractual obligations?
breach of contract
A buyer representation agreement establishes agency between a buyer and a:
broker
Which party must remain neutral during a transaction?
broker acting as intermediary
Which of these is an example of a general agency relationship?
broker and sponsored agent
For real estate license holders, who is considered "your principal"?
client
What is it called when an agent illegally mixes their money with client money?
commingling
Who is responsible for informing employees of their conduct expectations and responsibilities?
commissioners
Unless otherwise specified through an agreement, if one spouse rents out their separate property, the income is considered:
community property.
the presence of an attorney
consideration
What will a developer need to determine the need for leveling, grading, and engineering problems that may arise?
contour map
What is an executory contract?
contract that has not been fully performed
In order to get their license, a TREC real estate license applicant MUST:
demonstrate competence by passing the licensing exam
A person who possesses a broker's license and is responsible for not only their own actions, but the actions of every license holder in their real estate office is called a:
designated agent
Jamie is an agent representing a seller. She holds an open house to find a buyer for the home. What is she legally required to do?
disclose that she represents the homeowner
In an agency relationship, the agent owes the principal the fiduciary duties of loyalty, obedience, accounting, confidentiality, reasonable care, and what else?
disclosure
The right of one party to access or use the land of another is a(n):
easement
Plants that are cultivated and harvested annually are considered personal property. These are called:
emblements
Any claim or right against the property of another is called an:
encumbrance
Liens, easements, and encroachments all create:
encumbrances
A buyer is purchasing a property. They signed a contract but the sale has not yet closed. What kind of ownership interest or estate do they have?
equitable estate
A buyer does not pay for a property in full. This is an example of a(n):
equitable lien
As a license holder, what could help protect you against mistakes you might make in real estate transactions?
errors and omissions insurance
How often must a real estate license be renewed?
every two years
TREC requires applicants to pay renewal fees every how many years to maintain an inactive license?
every two years
The bundle of right associated with property ownership include quiet enjoyment, possession, disposition, and:
exclusion
Through which type of agreement does the agent's brokerage have the best claim to a commission on the sale?
exclusive right to sell
Which of the following types of listing agreements provides that the broker will get paid regardless of who buys the listed property?
exclusive right to sell
Protected classes in the Fair Housing Act of 1968 include race, color, religion, national origin, sex, disability, and what other category?
familial status
religion and color
familial status and disability
If a property owner does not pay their income taxes, the IRS may put what on their property?
federal tax lien.
Monica owns her house. For the duration of her lifetime, she has the right to her property (unless she sells it) and can will her property title to her children after her death. Monica has a:
fee simple estate
Where does the money in the recovery fund come from?
fees and fines paid by license holders
What is the name of the duties owed by agents to their clients?
fiduciary duties
Which of these actions is it okay for a non-lawyer agent to perform?
filling out the form based on what their client wants/says
When should agency relationships be disclosed?
first contact
According to the Texas Real Estate License Act, when must the written statement providing the Information about Brokerage Services be provided?
first substantive dialogue
uniqueness
fixity
Besides their brokerage, where is one place that an agent can get a buyer's representation agreement and listing agreement that is legal to use?
from TAR
Plants that are NOT cultivated or harvested are considered real property and referred to as:
fructus naturales
What is one way an applicant can satisfy the related post-secondary education required for a broker's license?
getting a college degree
How do you pay a penalty while still ensuring that your payment does not go through until the appeal is over?
give a supersedeas bond
If no third party is named as remainderman, when a life estate owner dies, the property reverts to the:
grantor
When a person passes the Texas exam for real estate, they:
have met the competency requirement under the Texas Real Estate License Act.
Who is eligible for capital gains tax exemptions?
homeowners selling their primary residences
A license holder is required to disclose a property defect:
if the seller has disclosed the defect at all.
Homeowners insurance policies are usually paid:
in advance
If property is owned by one person or one entity, it is owned:
in severalty
If property is owned in severalty, it is most likely owned by a(n):
individual
Once all hearings and appeals have been completed, a broker or sales agent will have to start paying what on any owed funds?
interest
The four unities apply to co-ownership that is classified as:
joint tenancy
The three types of co-ownership are community property, tenancy in common, and what?
joint tenancy
An unmarried Texas couple purchased real estate together. How would the deed identify how they hold their interests if they specify they want them passed to the survivor in case of death?
joint tenancy with rights of survivorship
Which of these contracts would not be subject to the statute of frauds?
leases of less than one year
When a business has general partners that oversee the daily activities of the business and other partners that are only investors and only have liability up to the amount of their investments, what type of partnership do they have?
limited
Which legal description will likely include the phrase "point of beginning"?
metes and bound
Which of these is the most accurate method of identifying a piece of land?
metes and bounds
With which type of land description does a surveyor indicate direction in degrees, minutes, and seconds?
metes and bounds
What kind of crime is committing a real estate act without a license?
misdemeanor
What does the integrity portion of the Canons of Professional Ethics charge license holders with avoiding?
misrepresentation
What are nolo contendere pleas sometimes referred to as?
no contest pleas
What is the term for when a defendant in a criminal court does not admit they are guilty but still accepts punishment for a crime?
nolo contendere
John has an easement appurtenant that allows him to cross Sally's land. Sally is selling her property. When Sally's property sells, John will:
not have a problem as easements run with the land
Bounds
on the other hand, are the descriptions of the boundaries that enclose a parcel of real estate.
How long from the TREC filing date does an applicant have to take the state exam?
one year
What is the definition of a trade fixture?
personal property attached to real property that is owned by and needed for a tenant's business
What is the definition of a fixture?
personal property that has been permanently attached to real estate
What do you call a listing that does not come up on the MLS?
pocket listing
The introduction to the National Association of REALTORS® Code of Ethics is called the:
preamble
What should a license holder do when reporting facts in an advertisement?
quote the source of the information
The Civil Rights Act of 1866 prohibits discrimination against individuals on the basis of what?
race
In terms of the surface area surveyed, which surveying system is used to describe the most land in the U.S.?
rectangular survey
Metes
refers to the distance measurements used in the description
What can a seller typically expect to get when they cancel their insurance after selling their house?
refund
A father conveys property to his son, but reserves a life estate for himself. During the father's lifetime, what interest does his son have?
remainder
The National Association of REALTORS® Code of Ethics:
requires a higher standard than the law requires
With a fee simple subject to condition subsequent, if the specific requirement is not met the property will:
revert back to the original owner.
As a broker, when should you inform a buyer, seller, or agent that you are representing a party involved with the property the buyer, seller, or agent is interested in?
right away
If someone has a river on their property, what type of rights would be associated with it?
riparian
Who requires sponsorship to practice real estate?
sales agent's
In order for an individual to be eligible for a real estate license, they MUST:
satisfy the Commission as to their integrity.
In order for an individual to be eligible for a real estate license, they MUST:
satisfy the commission as to their integrity
After a contract is signed, an agent must deposit escrow funds no later than the close of the:
second business day
Who are the parties to the listing agreement?
seller and broker.
Which of the following actions does NOT require a real estate license?
selling their portion of a joint ownership in a property
Agent Sam owes Agent Layla a referral fee. How must he get it to her?
send it to Layla's sponsoring broker
What kind of contracts are listing agreements and a buyer's representation agreements?
service
How many years are surveys typically good for?
seven
What do owners in co-op buildings actually own?
shares of stock in the co-op corporation
In order for a real estate contract to be valid, it must be:
signed by the seller
uniqueness
situs
Township lines run west and east, parallel to the baseline. How many miles apart from each other are they?
six miles
The average number of months it will take to sell a house in a buyer's market is:
six months or more.
To a client, what is a broker considered to be?
special agent
A mortgage is an example of a:
specific, voluntary lien
When a property is talked about in a meeting or via written communication, that is called:
substantive dialogue
When an individual owns the mineral rights, they own:
subsurface rights.
When there is a breach of contract, the non-breaching party can rescind the contract, forfeit the contract, or:
sue for compensatory damages and/or specific performance
How do you pay a penalty while still ensuring that your payment does not go through until the appeal is over?
supersedes bond
MUD districts are unique in that they:
tax residents for the building of utility infrastructure
All listing contracts in Texas must include two pieces of information: the special rules concerning anyone who lives on a coast and what else?
that all commissions are negotiable
All listing contracts in Texas must include two pieces of information: the special rules concerning anyone who lives on a coast and what else?
that all commissions are negotiable.
On a listing sheet, what would a field stating "BC: 3" mean?
that the brokerage representing the buyer will receive 3% of the commission
The preamble of the National Association of Realtors Code of Ethics refers to which rule to use as a guide for making ethical decisions?
the Golden Rule
What is one promulgated form that TAR has and TREC does not?
the Intermediary Relationship Notice form
What is the name of the professional organization that created the Code of Ethics?
the National Association of REALTORS
Promulgated contracts are prepared by:
the Texas Real Estate Broker-Lawyer committee
What is one practice that has helped lessen the unscrupulous activity prevalent in the early days of real estate?
the buyer getting an abstract and having it examined by an attorney
Who would hold the ownership interest of a co-owner who passes away?
the deceased's named descendants
A license holder who represents a party in a proposed real estate transaction should disclose that representation at the first contant with another party to the transaction, and what other time?
the first contact with another license holder representing someone in
According to the Canons of Professional Ethics, the primary duty of a real estate agent is to represent:
the interests of their client
Who does the property revert to at the end of a lease?
the landlord.
If the Code of Ethics and the law conflict, which takes precedence?
the law
What is the best definition of blockbusting?
the practice of encouraging people to sell their homes due to beliefs about how the entry of a protected class will affect an area's property values
When an appraisal report is not available, which of the following provides the BEST indicator for setting a listing price in a fast-moving seller's market?
the price willing buyers have recently paid for similar properties in the area
A couple renting a home have a leasehold estate, which means they have:
the right of possession
What right is given to the public as result of the Texas open beach law?
the right to use the beaches
What right does an easement grant?
the right to use the property
When a license holder takes a listing they must be fair to all parties, but to whom do they owe their fiduciary duties?
the seller
Property taxes are based on what?
the value of the property
What do PUD owners actually own?
their lot and a share in the common elements
How many tries does an applicant have to pass the state licensing exam?
three
What type of property has multiple owners and is typically located in a recreational environment?
timeshares
If the buyer asks if the seller has AIDS or HIV, the agent's response should be:
to give notification that the question might be a violation of the Fair Housing Act
If the buyer asks if the seller has AIDS or HIV, the agent's response should be:
to give notification that the question might be violation of the Fair Housing Act
What is the recovery fund used for?
to pay damages to a person from the public who wins a court case against a license holder
A minor is named the beneficiary of real property upon the passing of the property's owners, but with the stipulation that the property will be held by another party until certain conditions are met (i.e., the minor is no longer a minor). What is the correct term for this legal arrangement?
trust
Seller Mandy has decided she's taking her hot tub with her when she sells the house. She unbolts the tub from the deck and has it moved to her new home. What did this act of severance do?
turned real property into personal property
How many years are continuing education courses valid for?
two
What are the four unities required for joint tenancy?
unity of interest, time, title, and possession
An estate at will allows the tenant to occupy the property:
until either the tenant or the landlord decides tenancy should end
What survey method is used for expressing condominium ownership boundaries?
vertical land description
Ownership rights include surface rights, subsurface rights, air rights, and:
water
Doug granted Betsy a life estate for a property he owned and named his son as the remainderman. When will his son become the owner of the property?
when Betsy dies
When does an inactive license become active?
when a license holder joins a brokerage.
After what point in the signing of the contract is it no longer possible for a buyer to rescind the offer?
when the buyer or buyer's agent receives the notice of acceptance
When can a salesperson start practicing real estate?
when their physical license is received by their sponsoring broker
Executory Contract
-MLS status shows "pending" rather than "for sale" or "sold"
The Broker-Lawyer Committee
-Members: 13 (6 brokers appointed by TREC, 6 lawyers appointed by the president of the Texas Bar, 1 public member appointed by the governor.)
Which of the following is NOT true regarding a license holder's obligation to disclose a property defect:
-Only if the Buyer asks
Encroachment
-an illegal use of another land owner's property
Concurrent Estates
-community property
Freehold Estate
-defeasible fee estate
A listing agreement is an agency agreement between whom?
A seller and a broker
Under federal fair housing law, it is illegal to:
Advertise property for sale only to couples without children
Why is it important to stay on top of your license renewal and expiration dates?
After a license has expired there is an extra fee for renewal
What is another word for the illegal practice of panic selling?
Blockbusting
What is an essential element of a valid contract?
Consideration
Sally and Fred are two single people buying a home together. The lender is threatening to deny them a loan because he does not like their lifestyle. If the lender does that, it will be a violation of the:
ECOA
status?
ECOA - Equal Credit Opportunity Act
FALSE
FALSE
If a license holder does not disclose a defect in a property to a customer or client because the broker or sales agent did not know about the defect, the license holder is still liable.
FALSE
Most insurance policies cover loss or damage from flooding.
FALSE
Canons of Professional Ethics and Conduct
Fidelity
What is the only scenario in which you do NOT need a real estate license to sell or lease a property?
If you are receiving any commission off of your sale, you are NOT allowed to sell or lease a property without a license.
For a listing agreement to be enforceable in court, it MUST be:
In writing
What is the part of a contract stating one or more of the contracting parties must refrain from actions that would usually be legal called?
Incorrect
Real Estate Brokers
Insurance Companies
What is the difference between land and real estate?
Land is a tract of earth plus the resources above and below; real estate is land plus human-made improvements.
Fixity refers to the fact that:
Land is cannot be moved
Which right is associated with lakefront or oceanfront property?
Littoral
Buyer Alex is looking at a lakefront property. He has questions about whether he would be allowed to access and use the lake. What kind of rights is Alex wondering about?
Littoral rights
Which of these is an agent's fiduciary duty to put the client's interests first, including over those of the agent?
Loyalty
RESPA
TRELA
TRELA
Texas Real Estate License Act - TRELA
Who determines the topics and number of hours of continuing education a licensee must take in the two years between renewal of their license?
The commission
Puffing
The making of exaggerated claims (technically opinions)
What contains Fair Housing laws, community property laws, and homestead laws?
U.S. Constitution and the State Constitutions
Who is at fault for not filing the closing paperwork in a timely manner?
Ulysses (Agent)
Property taxes are based on what?
Value of the property
A testamentary Trust is created through the use of a
Will
What is required for a broker to act as an intermediary in a real estate transaction?
Written consent from both parties.
How often will you be formally evaluated in the workplace?
You will be evaluated on your performance each year.
What is an executory contract?
a contract that has yet to be fully executed
Industrial real estate does NOT include:
a triplex
What does the word "ad valorem" mean?
according to value
The NAR® Code of Ethics is reviewed and updated ____________.
annually
Metes and bounds
are a written legal land description identifying a piece of real estate's exact dimensions and location in reference to a fixed and permanent monument.
With a revokable living trust, when are the beneficiaries able to change the conditions of the trust?
at any time
What is another term for personalty?
chattel
Property that is bought and held by a married couple in Texas is:
community property
Integrity
employment of prudence and caution to avoid misrepresentation
If partners share all of the resources and responsibilities for their business, what type of partnership are they in?
general
When should agency relationships be disclosed?
initial meeting
What are important details that could change a customer's decision about a property called?
material facts
What is a datum base point established by?
mean sea level
What direction do longitude lines, or meridians, run?
north to south, perpendicular to the equator
How long does person who believes that they have been injured by the discriminatory practices of a real estate license holder have to file a complaint with HUD?
one year
Which of the following terms refers to a surveyor's or developer's map that identifies lots and blocks?
plat
What does PITI include?
principal, interest, taxes, and insurance
What do Texas homestead rights do?
protect the home from creditors that do not have specific or tax liens
tell them it will be hard to find a property that "meets their special needs"
provide them with the official translated lease forms
Additional tax liability typically happens when selling which of these types of property?
ranches
discharging the counteroffer
rejecting the counteroffer
Incorrect
steering
An agent has obtained a buyer representation agreement with a new client. Who owes the client fiduciary duties?
the broker and all sponsored agents in the brokerage
What is one of the major tenets in the NAR Code of Ethics?
treat all parties fairly and honestly, not just those they represent.
The TCEQ is tasked with regulating which of these things?
water rights
When is a license required to sell property?
when an individual is receiving valuable consideration
A testamentary trust is created through the use of what?
will
What is required for a broker to act as an intermediary in a real estate transaction?
written consent from both parties
Americans with Disabilities Act
-establishes requirements for telecommunications relay services
Obedience
-is only required if legal
At what age does a child living with his or her parents no longer qualify for familial status protection under the Fair Housing Act?
18, they are no longer considered a child by the Fair Housing Act and do not receive the act's protections.
Which of these tenants is protected by the Fair Housing Act?
A seeing-impaired woman who uses a service dog in a pet-free building
CRA
Community Reinvestment Act
What is the name given to the duties owed by agents to their clients?
The duties owed by agents to their clients are known as fiduciary duties.
Was it a violation for Tom to agree to inquire about the previous owner's death?
Yes, Tom's inquiry was in violation of Fair Housing Laws
What two important classifications were added to the list of protected classes under the 1988 Housing and Community Development Act amendment?
familial status and disability
Fair Housing Act
-a federal law that prohibits discrimination in housing based upon race, color, religion, or national origin and was amended to include sex, disability, and familial status
Equal Credit Opportunity Act
-illegal to discourage anyone from applying for credit
Community Reinvestment Act
-requires lenders to assist their local communities by participating in community development projects
Which statement is NOT true regarding death on a property?
Agents are able to disclose deaths at their discretion
When asked to inquire about the previous owner's death, how should Tom have responded?
He should tell his clients he's legally not allowed to inquire about the death
Home Mortgage Disclosure Act
-allows HUD to spot problematic lending patterns and helps support lawsuits or other disciplinary measures
Loyalty
-the buyer's agent should get the lowest price possible, even if it means less commission
Using the general terms of agency law, which party is represented by another party?
Principal
What is the best definition of blockbusting?
The practice of encouraging people to sell their homes due to beliefs about how the entry of a protected class will affect an area's property values
The introduction to the National Association of REALTORS® Code of Ethics is called the:
The preamble.
What is one of the major tenets in the NAR Code of Ethics?
Treat all parties fairly and honestly, not just those you represent
If a salesperson has no interest in opening their own brokerage, why might they still want to get a broker's license?
for marketing purposes
Disclosure
-if it will help the client, the agent should share it
Which parties need to be told if an agent is representing anyone?
A license holder must disclose orally or in writing to others of their representation of a party to a real estate transaction at the first contact.
Why do most brokerages fall within the scope of the ADA, and therefore must be extra careful about accessibility?
Because of their location or because they have 15 or more employees
Which of the following phrases would be considered discriminatory if used in an advertisement?
Christian Neighborhood
What is the BEST way to avoid giving misinformation (and consequently, violating the Texas Deceptive Trade Practices-Consumer Protection Act)?
Cite a source for any information you give a client about a property
Fraud vs. Misrepresentation
Fraud is intentional; misrepresentation is not. Fraud generally includes both affirmative misrepresentations and affirmative concealment, and the person making the misrepresentation is aware of the true facts.
An elderly couple is going to rent their vacant basement for extra income. The couple does not want a family with children. The couple asks their granddaughter, who is a real estate agent, to help them with finding tenants. Is this legal? Why or why not?
No, the couple is not allowed to discriminate against families with children if they are helped by their granddaughter because she is a license holder
Does misrepresentation require malicious or deceptive intent?
No, the seller, broker, or agent may be liable for misrepresentation even without malicious or deceptive intent.
Carla has clients looking for a rental property who only speak Spanish. What should she do to accommodate them?
Non-English speakers should be treated the same as English-speakers, and should therefore be shown the same properties, regardless of language. However, there are official translated lease forms that could help them understand the contract they're signing.
Which one of the following actions is most likely to be a violation of the Texas Deceptive Trade Practices-Consumer Protection Act?
The Deceptive Trade Practices Act prohibits the license holder from knowingly and/or intentionally deceiving the consumer in the selling or leasing of any real property. Providing a list of professionals to choose from does not violate the law.
Landlords are required to allow tenants to make modifications to their property in order to accommodate their disability. Who's responsible for paying for these modifications?
The tenant
