Licensing

Which of the following requires a real estate license?

A company that, for an advance fee, matches individuals from different parts of the country who want to exchange properties and assists them in doing so

Three weeks before a man begins his real estate prelicensing classes, he offers to help find a buyer for his neighbor's house. The neighbor agrees to pay the man a percent commission. An offer is accepted while the man is taking classes and closes the day before he passes the examination and receives his salesperson's license. The neighbor refuses to pay him the agreed commission. Can the man sue to recover payment?

No, because state law prohibits a person from maintaining an action to collect compensation for acting as a broker or salesperson, unless the person held a license that was in effect at the time the act was commenced.

Who must have a real estate broker's license in order to transact business?

Person who negotiates the sales of business opportunities, including stock equipment and buildings, for a promised fee One does not need a real estate license to sell personal property (for example, the good will and assets of a business), but does need one to sell the building.

Courses for the renewal of a salesperson license during the first year after licensing are referred to as

Salesperson Apprentice Education (SAE). An applicant applying for the first renewal of a salesperson license must provide to the commission satisfactory evidence of completion of at least 18 semester hours, or equivalent classroom hours, of core real estate courses.

When a licensed broker changes his place of business,

TREC must be notified within 10 days of the move to the new location.

The License Act provides for

a minimum of 15 classroom hours as a prerequisite to license renewal every 2 years after SAE requirements have been met.

A person must be licensed as a real estate broker or salesperson if that person is A)selling his house. B)engaging in the real estate brokerage business. C)constructing houses. D)buying a house for his personal use.

engaging in the real estate brokerage business. Only those who engage in the real estate brokerage business must be licensed.

In Texas, licenses are renewed

in the month issued. Licenses are generally renewed in the month issued.

A real estate salespersons' licenses expires

two years from the last day of the anniversary month of issuance.

An airline pilot told a broker about some friends who were looking for a new home. The broker contacted the friends and eventually sold them a house. May the broker give the airline pilot a gift for this valuable lead?

yes, as long as the gift was not prearranged, not cash, and the value does not exceed $50 retail value. The broker may say "thank you" to the airline pilot and give a gift as long as the value of the gift does not exceed a retail value of $50. The broker may not pay cash to an unlicensed person in any amount.

An individual wants to sell her own house. Which statement is TRUE? A)She does not need a real estate license to sell her house herself. B)The individual may obtain a temporary real estate license in order to legally sell her house. C)In Texas, anyone who sells real property must have a real estate license issued by the Real Estate Commission. D)She may sell her house without obtaining a real estate license only if she is a licensed attorney.

She does not need a real estate license to sell her house herself. Property owners who rent, sell, or buy property for themselves are exempt from licensing requirements.

License renewal fees are set by

TREC rule. TREC is authorized to adopt rules to charge and collect reasonable fees for such activities as license application and renewal, license examination, and change of sponsorship.

A real estate broker's license is NOT required of persons who

advertise and lease their own properties. A person acts as a broker or salesperson if the person, with the expectation of receiving valuable consideration performs or offers to perform for another person any act described by TRELA. Exemptions to licensing requirements include persons as onsite apartment managers, builder's employees, and attorneys.

For a business entity to be licensed as a broker the following is required: A)all of these are required. B)a managing officer of the entity must be designated as the agent for purposes of TRELA. C)the entity must provide proof of E&O insurance of $1 million for each occurrence if the designated agent owns less than 10% of the entity. D)the designated agent must have a broker's license in active and good standing with TREC.

all of these are required.

All of the following activities, when performed for another person and for a fee require a person to be licensed as a broker EXCEPT A)an attorney licensed in Texas acting as a real estate broker in a real estate transaction, but does not have a broker's license. B)an attorney licensed in another state, but not licensed in Texas, acting as a broker in a real estate transaction in Texas. C)a person procuring or assisting in procuring a prospect to affect the sale, exchange, or lease of real estate. D)a person controlling the acceptance or deposit of rent from a resident of a single-family residential property unit.

an attorney licensed in Texas acting as a real estate broker in a real estate transaction, but does not have a broker's license. An attorney licensed in Texas is exempt and may act as a broker without a broker's license. Note that any attorney attempting to obtain a Texas broker license must first qualify for and serve the required time with a salesperson's license, sponsored by a broker, before being qualified to become a licensed broker. An attorney licensed in Texas is exempt from the requirements of the act, but cannot sponsor real estate salespersons or serve as the designated officer or manager of a licensed corporation or limited liability company, unless the attorney is also licensed as a real estate broker.

All of these people are exempt from the provisions of the Texas Real Estate License Act EXCEPT A)a public official in the conduct of that person's official duties. B)an individual who is employed as an onsite apartment manager. C)an individual who receives compensation for procuring prospective buyers or renters of real estate. D)a property owner who sells or leases the owner's own property.

an individual who receives compensation for procuring prospective buyers or renters of real estate. An individual who receives compensation for procuring prospective buyers or renters of real estate must hold a real estate license.

After the first renewal, what mandatory classes are required to renew a salesperson's real estate license?

completion of 15 hours of continuing education acceptable to the Commission. A licensee applying for first renewal of a salesperson license must provide satisfactory evidence of completion of a total of 18 semester hours (270 classroom hours), with 180 hours being the application education requirement courses. Please note that this means only 6 additional semester (90 classroom) hours in core real estate courses are required to be filed during the term of the license as a licensed salesperson. These hours are known as SAE, or Salesperson Apprentice Education. These 90 additional classroom hours in core real estate courses for the SAE must be submitted and in the TREC system by the end of the second year of licensure. After the first renewal, a license holder is required to complete 15 MCE (Mandatory Continuing Education) hours of acceptable mandatory continuing education every two years.

The office manager for a local real estate firm is responsible for the following activities: coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office manager is A)required to have a broker's license. B)required to have a salesperson's license. C)violating the license law. D)exempt from real estate licensing requirements.

exempt from real estate licensing requirements. The office manager is performing non-real estate brokerage activities and is not managing or supervising licensees and therefore would not be required to hold a real estate license.

Every Texas real estate brokerage firm is required to

have a licensed broker who is the broker for the firm. Although a person would not have to be a licensed broker to own a real estate brokerage (provided they did not perform any activities for which a license is required), there would have to be a licensed broker who is the broker of the firm.

Unless otherwise exempt, to renew a license in Texas a broker must

have completed 15 hours of continuing education in the last 2 years, including 3 hours in legal and 3 hours in ethics. Any license holder who is not subject to the annual education requirement of TRELA must show that she has attended during the term of the current license at least 15 classroom hours of acceptable continuing education. Brokers who sponsor salespersons must take a 6 hour broker responsibility course regardless of when they became brokers.

If engaged in real estate brokerage activities, which persons are exempt from the real estate licensing requirement?

is attorneys at law licensed in Texas. Attorneys at law who are licensed in Texas are exempt from real estate licensing requirements. Attorneys licensed in other states, but not licensed in Texas, are not exempt.

The onsite property manager for an apartment complex is responsible for negotiating leases for the apartments. In this position, the onsite manager

is exempt from the licensing requirements. In this position, the onsite apartment manager is exempt from the licensing requirements.

When a sponsoring broker's license is suspended for two years, the licenses of the salespersons sponsored by the broker

must be returned to the Real Estate Commission, and the salespersons are prohibited from further activity as licensees until they have obtained new sponsoring brokers.

A license holder who allows a license to expire has how long to reinstate the license without monetary penalty?

no time. If a license expires, there is no time or grace period in which to renew without at least a monetary penalty. A salesperson who fails to complete the additional education requirements by the end of the first year of licensing will automatically be placed on an inactive status. Renewal will require completion of the required core education and the payment of a late renewal fee. A person whose license has been expired for 90 days or less may renew the license by paying to the Commission a fee equal to 1 ½ times the required renewal fee. If a license has been expired for more than 90 days but less than one year, the person may renew the license by paying to the Commission a fee equal to two times the required renewal fee. If a person's license has been expired for one year or longer, the person may not renew the license. The person may obtain a new license by submitting to re-examination and complying with the requirements and procedures for obtaining an original license.

When terminating the sponsorship of a salesperson, the broker must

notify the salesperson in writing of the termination and immediately return the salesperson's license to the Texas Real Estate Commission.

It is unlawful for persons to act in the capacity of or represent themselves as real estate brokers without first

obtaining a license from the Texas Real Estate Commission. Unless a person holds a license issued under this chapter, the person may not act as or represent that the person is a broker or salesperson or act as a residential rental locator.

Persons required to hold a license under the License Act include A)onsite managers of apartment complexes. B)real estate brokers operating out of their home. C)those employed by a builder in the regular course of their business. D)lawyers licensed in Texas.

real estate brokers operating out of their home. A broker must maintain a fixed office, which may be the broker's residence. TRELA exempts onsite apartment managers, builder's employees, and attorneys licensed in Texas from licensure requirements.

A salesperson is not satisfied with her present real estate company and has decided to become associated with another real estate brokerage company. Before the salesperson may begin actively selling for the new company, the

salesperson and the new broker must notify the Commission within 10 days, submit the appropriate fee, and request issuance of a new license reflecting the new association. The present broker is required to return the salesperson's license to the Real Estate Commission upon notification by the salesperson that the relationship is being severed. The salesperson's new sponsoring broker must submit the Salesperson Sponsorship Form and appropriate fee to the Texas Real Estate Commission. A new license will be mailed to the new sponsoring broker; however, the salesperson may begin work immediately for the new broker as soon as the form and fee are placed in the mail.

A real estate license is required for all of these activities EXCEPT A)leasing office space as a third-party property manager. B)locating apartments for lease. C)selling cemetery lots. D)selling Texas real estate to foreign investors.

selling cemetery lots.

Under what circumstances, if any, may a licensed salesperson be sponsored by more than one Texas broker?

under no circumstances. A salesperson may engage in real estate activity under the sponsorship of only one broker. If TREC receives a request from a broker to sponsor a salesperson already sponsored by another broker, TREC will notify the former broker to immediately return the license to the Commission.