Chapter 3

The key point regarding activities requiring a license is embedded in the phrase:

"on behalf of others, for compensation."

Licensee Fee

$10 for the benefit of the recovery fund.

Members of the committee may serve up to how many consecutive terms?

3

Other education required for sales agent or broker applicant:

3 classroom hours of course work on federal, state, and local laws governing housing discrimination, housing credit discrimination, and community reinvestment; or 3 semester hours of course work on constitutional law

What is the experience requirement for an applicant for a broker's license?

4 years of active experience in Tx during the 60 months preceding the date of application

The Texas Real Estate Commission is made up of

6 licensed brokers having at least 5 years of experience as their major occupation and 3 members represent the public. Each member must be qualified voters.

TREC members serve a

6 year term

the minimum number of members of the committee consists of:

7

The committee will conduct its meetings in substantial compliance w/

Robert's Rules of Order.

Applicant for a broker's license must provide proof that he or she has:

at lease 4 years of active experience in this state as a license holder during the 60 months preceding the date the application is filed. successfully completed at lease 60 semester hours, or equivalent classroom hours, of postsecondary education.

Postsecondary education for broker applicant:

at least 18 semester hours, or equivalent classroom hours of core real estate courses, 2 semester hours of which must be real estate brokerage at least 42 hours of core real estate courses, or related courses accepted by the commission a bachelor's degree from an accredited college or university counts towards all the related education requirements for a salesperson or broker license

How old must a license applicant be to apply for a real estate license?

at least 18 years old

A member may be reappointed after a break in services of how many years?

at least 2

An aggrieved persons claim for reimbursement is limited to payments from the trust account for claims including:

attorney's fees, interest, and court costs, arising out of a single transaction may not exceed a total of $50,000, regardless of the number of claimants.

The following parties do not have to have a Texas real estate license:

attorneys-in-fact attorneys-at-law an auctioneer receivers, trustees in bankruptcy, administrators, executors, or guardians a person employed by an owner resident managers federal agency or state govt. officer or employee an owner or the owner's employee a partnership or limited liability partner

According to state law, you need a real estate license if you

buy and/or sell property on behalf of others.

Texas Real Estate License Act (TRELA)

establishes a Real Estate Recovery Fund for the protection of the public against harmful actions by licensees.

An applicant for a broker license who does not satisfy the experience requirements noted above must provide to the commission satisfactory evidence that he or she:

is a licensed real estate broker in another state has had at least four years of active experience in that state as a licensed real estate or salesperson during 60 months preceding the date the app is filed has satisfied the educational reqs

You must be licensed if you are a person who:

is employed by, or for an owner of real estate, to sell any portion of the real estate; or engages in the business of charging an advance fee listing the real estate in a publication primarily used for listing real estate referring info about the real estate to brokers

The TREC has the power to

issue subpoenas

A real estate license is required for anyone who does the following for compensation:

sells, exchanges, purchases or leases offers to sell, exchange, purchase, or lease negotiates lists appraises auctions Deals in options on real estate locating or obtaining real estate for purchase or lease procures or assists in procuring a prospect procures or assits in procuring property

How long is the term of a member of the committee?

staggered 2 year terms.

Commission members serve:

staggered six-year terms w/ the terms of three members expiring January 31 of each odd-numbered year.

There are two types of Texas real estate licenses:

the brokers license the salesperson's license

The Commission's subpoena powers:

the commission in the course of conducting hearings and investigations is empowered to issue subpoena.

In common terms, the broker is

the person ultimately responsible.

The following transactions do not have to have a Texas real estate licensee:

the sale, lease, or transfer of: a mineral or mining interest in real property the sale a cemetery lot the lease or management of a hotel or motel; or the sale of real property under a power of sale conferred by a deed of trust or other contract lien.

Salesperson

the salesperson is an individual holding a salesperson's license who is employed by, or an independent contractor for, a broker.

The committee consists of 12 members appointed by the commission (TREC) as follows:

7 members who have been engaged in the practice of real estate for at least 5 years before the member's appt and who are actively in that practice 4 members who are real estate instructors or owners of real estate schools accredited by the commission that provide core and continuing education 1 member who represents the public

How many member are in the Texas Real Estate Commission?

9 members appointed by the governor w/ the advice and consent of the senate.

At the time of application, a sales agent or broker applicant must be:

18 years old a US citizen or lawfully admitted alien a resident of this state

How long does the term of a commission member last and when does a term expire?

Commission members serve staggered six-year terms with the terms of three members expiring January 31 of each odd-numbered year.

The entity within the Real Estate Commission that is responsible for making these education reqs decisions is the

Education Standards Advisory Committee

When will a court order a payment to an aggrieved party from the Recovery Fund?

If a licensee cannot pay the full amount of the judgment ordered by the court, the party may apply to the court in which the judgment was rendered for an order to pay the balance due from the real estate recovery fund.

When is the committee's regular meeting each year?

In January

The Commission has the power to

appoint an Executive Director, assistant Executive Director, officers, and other personnel as needed to discharge the Commission's duties.

The committee will submit semiannual reports to the commission on or before

March 1 and September 1 of each year. detailing the performance of the committee.

To the commission a sales agent or broker applicant must:

Satisfy the commission as to the applicants honesty, trustworthiness, and integrity, demonstrate competence, complete the required courses.

Which entity establishes license fees?

TREC

Who do you obtain your license from?

Texas Real Estate Commission

The Real Estate Recovery Fund is maintained and administered by the

Texas Real Estate Commission (TREC).

Texas Title 7, Subtitle A, Chapter 1101, Subchapter B est. the creation of the

Texas Real Estate Commission to administer and enforce the real estate license law. It also empowered the Commission to create rules and regulations necessary for carrying out the provisions of the statutes.

The commission may request and, if necessary, compel by subpoena:

The attendance of witnesses for examination under oath; The production for inspection and copying of records, documents, and other evidence relevant to the investigation of an alleged violation of this chapter.

What is the function of the Education Standards Advisory Committee?

To regularly review and revise curriculum standards, course content requirements, and instructor certification requirements for core and continuing education courses.

If a vacancy occurs during a member's term, the governor will:

appoint a person to fill the unexpired term

When may a business entity act as a broker?

When the entity's designated agent is a licensed broker

Would a senior citizen charges an advance fee for referring an individual to her son who owns a leasing office in town need a real estate license?

Yes

Payments from the trust account for claims based on the judgments against a single licensee may not exceed:

a total of $100,000

The commission must:

administer chapter 1101 and chapter 1102. adopt rules and est. standards relating to permissible forms of advertising by a license holder acting as a residential rental locator. maintain a registry of certificate holders design and adopt a seal.

The commission may:

adopt and enforce rules necessary to administer Chapter 1101 and Chapter 1102 Est. standards of conduct and ethics for persons licensed under chapters 1101 and 1102 to fulfill the purposes of and ensure compliance w/ these chapters.

When applying for a salesperson's license, an applicant must have at least two semester hours of each of several core real estate courses covering what topics?

agency law contract law contract forms and addenda real estate finance

Broker

an individual who performs real estate activities while acting for another for a fee, commission, or other consideration, or the expectation of consideration.

If the licensee cannot pay the full amount of the judgment ordered by the court, the aggrieved party may:

apply to the court in which the judgment was rendered for an order that directs the court to pay the balance due from the real estate recovery fund.

Public members of TREC are not eligible is their spouse is:

licensed/registered/certified by an occupational regulatory agency in the real estate industry receives funds from the commission owns or controls, directly or indirectly, more than a 10 percent interests in a business entity or other org. regulated by the commission, or receiving funds from the commission; or uses or receives a substantial amount of tangible goods, services, or funds from the commission membership, attendance, or expenses.

TREC consists of how many members?

nine members - six licensed brokers and 3 members of the public.

Would a person who receives and delivers a $500,000 deposit to her principal broker from a buyer need a real estate license?

no

Typically, an auctioneer is

not required to have a real estate license.

The terms of the committee members expire:

on 12/31 of each even number year, the terms of four license holder members and 2 education members expire. on 12/31 of each odd-numbered year, the terms of 3 license holder member, 2 education members expire and public member expire.

What 3 positions do the committee elect from it's members in their regular meeting each year?

presiding officer, assistant presiding officer, and secretary.

An applicant for sales agent or broker must:

provide fingerprints w/in 6 months of the filing for the application. complete a criminal history background check. pay the appropriate fees.

The function of the Education Standards Advisory Committee (the committee) is to

regularly review and revise curriculum standards, course content reqs and instructor certification reqs for core and continuing education courses.