Level 9 Texas Real Estate License Act

What are nolo contendere pleas sometimes referred to as? a. no contest pleas b. no comparison pleas c. no content pleas d. no contender pleas

no contest pleas

What must you have if you wish to sell, buy, lease, or transfer an easement or right-of-way? a. certificate b. license c. degree d. sponsor

certificate

After how many days will the Commission notify an applicant of their moral determination? a. 30 b. 40 c. 50 d. 20

30

Which of these actions requires a real estate license to legally perform? a. Shane helping his friend sell his home for $500,000. b. Jenny selling her own home for $175,000. c. Callie buying a home for $205,000. d. Michael renting a room in his house for $300/month.

Shane helping his friend sell his home for $500,000

The Texas Real Estate License Act is Chapter 1101 of the: a. Texas Occupations Code b. Texas Statute of Frauds c. Texas Fair Housing Laws d. Texas Federal Real Estate Act

Texas Occupations Code

TRELA is a law passed by the Texas Legislature to govern: a. Texas real estate b. agent rights c. buyer rights d. TREC

Texas real estate

Committing a real estate act without a license is what kind of crime? a. a misdemeanor b. a felony c. an infraction d. a civil crime

a misdemeanor

Which of the following people would need a real estate license? a. a person selling their neighbor's home for a fee b. an on-site apartment manager c. a homeowner selling their own home d. the receptionist at an attorney's office

a person selling their neighbors home for a fee

About how long can you have an expired license but still be eligible to reactivate your license without retaking the state exam? a. about 2 years b. about 1 year c. about 3 years d. about 4 years

about 2 years

What is a main function of the Texas Real Estate Commission? a. adopt and enforce rules for governing real estate practitioners b. mediate commission disputes between brokers c. generate a source of income for the state d. provide low-interest loans for low-income, first-time homebuyers

adopt and enforce rules for governing real estate practitioners

Subpoena authority exists to: a. allow the commission to bring witnesses to court b. allow the commission to revoke a license from a license holder c. allow a license holder to sue the commission d. allow a license holder to circumvent the commission

allow the commission to bring witnesses to court

Nolo contendere means that a person was accused of something and was a defendant in a trial: a. and will accept the decision of the court without pleading guilty to the charge b. and will plead guilty c. and refuses to participate in the trial d. and believes the jury is biased

and will accept the decision of the court without pleading guilty to the charge

What is one promulgated form that TAR has and TREC does not? a. the Intermediary Relationship Notice form b. the One to Four Family Residential Contract c. the Agricultural Environmental Hazard Disclosure from d. the Addendum for Property Subject to Mandatory Membership in a Property Owners Association

the Intermediary Relationship Notice form

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? a. $100,000 b. $128,000 c. $50,000 d. Up to $50,000 per complaint

$100,000

An administrative penalty cannot exceed: a. $5,000 b. $4,000 c. $10,000 d. $8,000

$5,000

Within how many days of a move does a broker need to tell the Commission about their change of address? a. 10 b. 7 c. 14 d. 30

10

After receiving a notice of violation, how many days does a license holder have to request a hearing? a. 20 days b. 100 days c. 5 days d. 365 days

20 days

How many lawyers are on the Broker-Lawyer Committee? a. 6 b. 9 c. 12 d. 7

6

An abbreviated history of a property, including info on any transfers, grants, wills, conveyances, liens, and encumbrances is called what? a. abstract of title b. attorney's opinion of title c. title insurance d. recording

Abstract of title

Who enforces the Texas Real Estate License Act? a. Texas Real Estate Commission b. National Association of Realtors c. Texas Association of Realtors d. Texas Department of Public Safety

Texas Real Estate Commission

If the buyer asks if the seller has AIDS or HIV, the agent's response should be: a. to give notification that the question might be a violation of the Fair Housing Act b. accurate and timely c. to pretend the question wasn't heard d. given through writing

To give notification that the question might be a violation of the Fair Housing Act

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. a. FALSE b. TRUE

FALSE

A person who is employed to rent land by the owner needs a real estate license. a. FALSE b. TRUE

False

Can a license holder renew their expired license if it has been expired for 5 months? a. Yes, but they must pay an additional fee equivalent to twice the amount of the renewal fee. b. No, the license holder must reapply for a new license. c. Yes, the license holder can pay the standard renewal fee provided they meet the continuing education requirements. d. Yes, but they must pay an additional fee equivalent to one and one half times the renewal fee.

Yes, but they must pay an additional fee equivalent to twice the amount of the renewal fee

Where does the money in the recovery fund come from? a. fees and fines paid by license holders b. a portion of all lottery ticket sales c. property taxes d. donations from TREC board members

fees and fines paid by license holders

When a person passes the Texas exam for real estate, they: a. have met the competency requirement under the Texas Real Estate License Act b. can now apply to become a broker c. are eligible to sell their first listing d. can use this license in other states

have met the competency requirement under the Texas Real Estate License Act

What is one instance in which the commission allows license holders to use alternatives to the required, or promulgated, forms? a. If the alternative form is prepared by the property owner themselves. b. If the promulgated form is unavailable. c. If the promulgated form has not recently been updated. d. If the alternative form is more comprehensive than the promulgated form.

if the alternative form is prepared by the property owner themselves

Once all hearings and appeals have been completed, a broker or sales agent will have to start paying what on any owed funds? a. interest b. royalties c. installments d. back pay

interest

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? a. nolo contendere b. commingling c. subrogation d. subpoena

nolo contendere

Who pays for mortgage title insurance? a. the buyer b. the seller c. the buyer's agent d. the seller's agent

the buyer

When can a salesperson start practicing real estate? a. when their physical license is received by their sponsoring broker b. as soon as they pass the state licensing exam c. when their license application is approved via email d. whenever their sponsoring broker says it's okay

when their physical license is received by their sponsoring broker

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. a defendant's previous employer b. a defendant's husband c. a defendant's aunt d. a representative of a defendant's sister

a defendant's previous employer

How often will you be formally evaluated in the workplace? a. annually b. monthly c. weekly d. daily

annually

What is the difference between actual and punitive damages? a. Actual damages are designed to compensate the claimant; punitive damages are designed to punish the defendant. b. Actual damages can be paid by the recovery fund; punitive damages cannot. c. Actual damages are limited to $100,000; punitive damages can be any amount. d. Actual damages are decided by a judge; punitive damages are decided based on receipts.

Actual damages are designed to compensate the claimant; punitive damages are designed to punish the defendant

Why is it important to stay on top of your license renewal and expiration dates? a. After a license has expired, there is an extra fee for renewal. b. It's not important, as license renewal is simple. c. If a license is inactive, it can only be renewed every three years. d. Once a license goes inactive, you must re-take the state exam to activate it.

After a license has expires, there is an extra fee for renewal

What law (chapter) imposes a code of ethics and standard of conduct on members of the Commission? a. Chapter 572 b. Chapter 1101 c. the NAR Code of Ethics d. the TREC Canon of Professional Responsibility.

Chapter 572

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? a. No, it is against TREC rules to try and convince someone to terminate an agreement with another license holder. b. No, it is illegal for license holders to speak to the clients of other license holders. c. Yes, there are no rules against poaching clients (it's called the real estate business, not real estate friends). d. Yes, as long as the client terminates the agreement of their own volition, it's perfectly legal.

No, it is against TREC rules to try and convince someone to terminate an agreement with another license holder

Promulgated contracts are prepared by: a. TREC b. agents c. lawyers hired by brokerages d. ONLY attorneys

TREC

How does the Real Estate License Act require brokers to provide consumers with information for the purpose of filing complaints? a. The broker must display Consumer Protection Notice TREC No. CN 1-2 in each place of business. b. Agents can tell them orally. c. Brokers are not required to provide that information. d. Sales agents should put it on their website.

The broker must display Consumer Protection Notice TREC No. CN 1-2 in each place of business

How can a potential student find the pass rates of real estate education providers? a. They are posted publicly online by TREC. b. They are posted on the MLS, only accessible to REALTORS. c. Real estate education providers must provide pass rates if asked by a potential student. d. They are printed in TREC's monthly newsletter, which anyone can sign up for by sending them a self-addressed stamped envelope.

They are posted publicly online by TREC

How do the time requirements for online continuing education classes compare to in-person continuing education classes? a. They are the same. b. In-person classes are required to take longer. c. Online classes are required to take longer. d. There are no time requirements for either kind of class.

They are the same

What categories of people are barred from serving on the Commission? a. Trade association employees and lobbyists are barred from membership. b. Active brokers and salespersons are barred from membership. c. No, anyone can become a member if they meet the other qualifications. d. Builders and developers are barred from membership.

Trade association employees and lobbyists are barred from membership

When does the information about intermediary brokerage contained in the IABS need to be given to a consumer? a. at the first face-to-face meeting where substantive dialogue about a specific property occurs b. only if the broker will be acting as an intermediary c. at the first face-to-face meeting where representation is discussed in any context d. after a contract is signed and executed

at first face-to-face meeting where substantive dialogue about a specific property occurs

Which party must remain neutral during a transaction? a. broker acting as intermediary b. buyer c. seller d. agent appointed to the buyer

broker acting as intermediary

What is it called when an agent illegally mixes their money with client money? a. commingling b. interbanking c. misprepresentation d. obfuscation

commingling

Who is responsible for informing employees of their conduct expectations and responsibilities? a. commissioners b. supervisors c. managers d. department heads

commissioners

In order to get their license, a TREC real estate license applicant MUST: a. demonstrate competence by passing the licensing exam b. be at least 21 years of age c. prove residency in either Texas or Oklahoma d. satisfy the Commission as to the individual's mental toughness

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: a. designated agent b. designated buyer c. designated broker d. designated seller

designated agent

As a license holder, what could help protect you against mistakes you might make in real estate transactions? a. errors and omissions insurance b. homeowner's insurance c. risk management services d. umbrella insurance

errors and omission insurance

TREC requires applicants to pay renewal fees every how many years to maintain an inactive license? a. every two years b. every one year c. every six months d. every three years

every two years

What is one way an applicant can satisfy the related post-secondary education required for a broker's license? a. getting a college degree b. apprenticing with a broker for 125 or more hours c. completing 30 hours of continuing education d. teaching continuing education classes to sales agents

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? a. give a supersedeas bond b. send a money order c. delay your payment through your bank d. set up an escrow account

give a supersedeas bond

How long from the TREC filing date does an applicant have to take the state exam? a. one year b. two years c. six months d. five years

one year

Agent Sam owes Agent Layla a referral fee. How must he get it to her? a. send it to Layla's sponsoring broker b. give it to Layla directly c. give it to her client to disburse to her d. sent it to the brokerage's lawyer

send it to Layla's sponsoring broker

When a property is talked about in a meeting or via written communication, that is called: a. substantive dialogue b. representation disclosure c. representation dialogue d. substantive disclosure

substantive dialogue

All listing contracts in Texas must include two pieces of information: the special rules concerning anyone who lives on a coast and what else? a. that all commissions are negotiable b. the name of the listing agent and broker c. the seller's disclosure notice d. whether a property has a Homeowner's Association

that all commissions are negotiable

What happens when the association of a salesperson and a sponsoring broker is terminated? a. The broker returns the sales agent's license to the commission. b. The sales agent returns their license to the commission. c. The commission collects the sales agent's license from the sponsoring broker. d. The license immediately becomes inactive until it is transferred to another broker.

the broker returns the sales agent's license to the commission

Who designates a broker member of the Commission to serve as a presiding officer? a. the governor b. the mayor c. the sheriff d. the district attorney

the governor

What right does an easement grant? a. the right to use part of a property b. the right own part of a property c. the ability to use a property for a certain amount of time every year d. the right to inhabit a property for a set period of time, usually a year

the right to use part of a property

How many tries does an applicant have to pass the state licensing exam? a. three b. two c. five d. unlimited

three

What is the recovery fund used for? a. to pay damages to a person from the public who wins a court case against a license holder b. to pay damages to a license holder who is brought to court by a person from the public c. to pay legal fees for a license holder who seeks council under TREC d. to pay the attorney fees for a person from the public who wins a court case against a license holder

to pay damages to a person from the public who wins a court case against a license holder

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. a. TRUE b. FALSE

true

How many years are continuing education courses valid for? a. two b. four c. three d. one

two

When is a license required to sell property? a. when receiving valuable consideration b. when selling their own property c. when selling a family member's property d. when selling a friend's property

when receiving valuable consideration