Champions state practice 1

Which of the following actions is NOT a violation of the Texas Real Estate License Act?

A broker offers a guaranteed buy back of a property for a set price, if the purchaser is not happy with the investment after a two-year period of ownership

Which of the following statements about multiple offers is true?

A broker with multiple offers must present all offers, but there is no required order of presentation

A Texas broker may pay a commission to:

A foreign broker who doesn't negotiate in Texas

Marcos was a Texas licensed Real Estate Sales agent for some time. He then chose to become inactive and TREC has been holding his license in inactive status. He now wishes to activate the license. What will he have to do?

Apply through a broker, pay $50 and take a 18-hour continuing education course

With the knowledge and consent of her broker/employer, an unlicensed assistant is showing property to prospective buyers. What is true about this situation?

Both the broker and unlicensed assistant can be fined an administrative penalty of $5,000 per day

A license holder has defaulted on his Texas State Student loans. As a result of this TREC will:

refuse to renew the license of this individual unless and until the loan payments are brought up to date

A broker has a listed property. The owner mentions that a neighbor is interested in selling. The broker meets with the neighbor and secures a second listing. Both listings sell and the broker earns a commission on each. The broker would like to thank the owner of the first listed property for this referral. How can the broker thank the seller?

He cannot pay the seller any commission at all

Without proper authorization, a sales agent may accept a commission directly from:

His broker

Which statement about Texas Homestead protection is FALSE?

Homestead protection will prevent foreclosure for unpaid property taxes

Which of the following is NOT found in the TREC 1-4 Family Resale Contract?

If lender required repairs exceed 20% of the sales price the buyer may terminate the contract

When a license holder markets his own property, he should:

Inform the buyer that he is a license holder, and the owner of the property

May has listed the property at 123 Main St. The sellers have told her that the property has 2,000 sq. ft. May has verified the square footage and entered this information correctly into the MLS. John, a license holder from another firm, shows the property to some buyer customers. He tells them that the property has 2,500 sq. ft. Who is liable for this misrepresentation?

John and his broker

A license holder in violation of the TRELA has received a summons from TREC that a hearing will be held regarding the possible revocation or suspension of his license. The license holder fails to respond to the summons. What will TREC do?

Schedule a hearing at the TREC office in Austin

TREC rules require a license holder to disclose his dual role if he is representing himself in a transaction. TREC also requires a license holder to disclose if his client is his:

Spouse, child or parent

In the event of a conflict between the statutory duties of Intermediary and the common law duties of dual agency of a broker, which takes precedence?

Statutory intermediary

TREC has the power to order witnesses to appear and/or produce records of documents for its investigations and hearings. This is called subpoena power. If a license holder fails to respond to a subpoena, what can TREC do?

TREC can file suit with the Attorney General to enforce the subpoena.

TREC has received an application for a Texas Real Estate Sales License from Mary. Mary has completed all her educational requirements, and passed the state exam. At this point TREC will begin the background check. Which of the following statements is FALSE?

TREC has 30 days to complete the background check

What TREC promulgated form should be incorporated into the contract when a buyer wants to obtain possession before the closing and funding of the transaction?

The Buyer's Temporary Lease Addendum

Who is responsible for filling in the effective date of the real estate sales contract?

The broker

What is required in order for a broker to act as an intermediary?

The broker must have the written permission of the seller and the buyer, including information on how the broker is to be paid

When must the option fee be delivered?

The buyer must pay the seller the option fee within 3 days of the effective date of the contract

A buyer is unable to obtain credit approval as described in the Third Party Financing Addendum for Credit Approval. If the buyer provides the seller with written notice within the agreed-to number of days, which of the following is FALSE?

The buyer will lose his earnest money

John has listed the property at 17 Oak St. The sellers have received and accepted an offer from the buyers. The buyers have received the survey and it shows an encroachment that the sellers did not previously disclose. The buyers are not willing to purchase the property in this condition. What action on the part of the buyers must be taken?

The buyers have the number of days mentioned in the contract to address survey problems with the sellers

Which of the following is the responsibility of the broker?

The listing advertisements of the sales agents he sponsors

According to the TREC One to Four Family Residential Contract, who is responsible for paying the owner policy of title insurance?

The party stipulated in the contract

Which of the following is true and demonstrates the difference between the role of a Broker-Intermediary and the role of a Sales Agent-Appointee?

The sales agent may give advice and opinions to one party in the transaction

Broker Bob has a listing contract and a buyer's representation agreement, and so is acting as intermediary in a transaction. The buyer tells Bob that if he is successful in purchasing the property, he plans to buy all the surrounding property too. What should Bob tell the seller?

Nothing, as this is confidential information from the buyer

When must representation be disclosed and in what form?

Orally or in writing at first contact

John sold his waterfront property to some buyers and provided the Notice of Coastal Area Property. The house on the property was behind the vegetation line at the time of the sale. Several months after the sale, a hurricane caused a considerable amount of beach erosion and the structure is now seaward of the vegetation line. What is true?

The state can force the removal of the structure

A sales agent wished to transfer to a new broker. When may he engage in the business?

When his fees and sponsorship forms have been mailed to TREC