Real Estate License Class 1 => Chapter 9

All license holders must take ____ hours of Legal Update I and II

8

if a broker no longer wants to sponsor someone, that person needs to be notified and the broker will send their ____ back to the Real Estate Commission

copy of the license

TREC's purpose is to oversee the ____

licensing, education requirements, and ethical standards

Applicants who fail the license exam can retake it. They just need to file a request and pay a fee to do so. In fact, applicants get ____ chances to pass

three

If someone breaks this rule, they may have to pay as much as ____ times the amount they received in the form of a penalty to TREC

three

Two commission appointees, Two Texas State Bar appointees expiring every ____ years

two

The maximum amount that can be paid out because of the actions of a single license holder will not go above ____ , no matter how many complainants there are

$100,000

Administrative penalties levied by TREC can be up to ____ per violation or for each day a violation continues.

$5,000

For a single case, the amount will not go over ____

$50,000.

The commission shall investigate the actions and records of a license holder if: ____

(1) a person submits a signed, written complaint; and (2) the complaint and any evidence presented with the complaint provide reasonable cause for an investigation

A person is not engaged in real estate brokerage, regardless of whether the person is licensed under this chapter, based solely on engaging in the following activities:

(1) constructing, remodeling, or repairing a home or other building; (2) sponsoring, promoting, or managing, or otherwise participating as a principal, partner, or financial manager of, an investment in real estate; or (3) entering into an obligation to pay another person that is secured by an interest in real property.

In ____ , the Texas Legislature passed the Texas Real Estate License Act to govern the licensing and practice of real estate in Texas.

1939

TRELA was passed in ____ .

1939

TREC was created in ____ .

1949

In order to enforce the provisions of TRELA, the Texas Legislature created the Texas Real Estate Commission (TREC) in ____

1949 (10 years later)

Membership Term Length: ____ years

6

A person who is employed to rent land by the owner needs a real estate license T/F

FALSE. A person who is employed to sell or rent land and/or structures by the owner does not need a real estate license. Next Page

Once all hearings and appeals have been completed, a broker or sales agent will have to start paying what on any owed funds?

Interest rates will be lower than they are on mortgages and credit cards, but it is important to be aware of this so you can pay fees right away, if needed, and avoid extra interest costs.

____ means that a person was accused of something and was a defendant in a trial, but will accept the decision of the court without pleading guilty to the charge.

Nolo contendere

____ member is a member of the public appointed by the governor

One

What is one promulgated form that TAR has and TREC does not?

Only TAR has an Intermediary Relationship Notice form, TREC does not have one.

The executive committee of the commission consists of the: ____

Presiding officer Assistant presiding officer Secretary

The Texas Real Estate Commission has a recovery fund that pays damages to a person from the public who wins a court case against a license holder. This fund is called the ____

Real Estate Recovery Trust Account

TREC regulates all of the following individuals: ____

Real estate inspectors 🔎 Easement/right-of-way agents 🛣 Education providers for real estate & inspection courses 📚 Developers of timeshares ⛱ Residential service companies 🏠 Real estate brokers and sales agents 🕵️

Who designates a broker member of the Commission to serve as a presiding officer?

The governor designates a broker member of the commission to serve as a presiding officer.

A broker who maintains more than one place of business in Texas state needs to get a ____ office license for each additional space.

branch

If a member of the Commission or employee speaks on behalf of the Commission, they ____ can/not be compensated except for travel costs.

cannot

TREC employees will receive guidance directly from the ____

commissioners

Who is responsible for informing employees of their conduct expectations and responsibilities?____

commissioners

The law and the TREC Rules do not always use the word "commission" in situations like this to represent compensation. Instead, they might say "receiving valuable ____ ."

consideration

A ____ has a broker's license and is not only responsible for their own behavior, but also the actions of all of the others in the office who have a real estate license

designated agent

If it's expired between 90 days and six months, renewal fees are __ .

doubled

An ____ is a right owned by one party to use the land of another.

easement

Some offices want to avoid doing an intermediary transaction with the broker representing both the seller and the buyer, so they create a policy of only representing one party in a transaction. This is called ____

exclusive single agency.

The commission shall adopt rules to charge and collect ____

fees in amounts reasonable and necessary to cover the costs of administering this chapter,

The submitter must provide reasonable cause for the investigation within ____ years of the date of the incident — hopefully sooner (the statute of limitations is ____ years).

four

The ____ appoints the one public member to the Committee.

governor

it's possible that a commission member could be named in a lawsuit as a result of their actions while performing their duties. In this case, ____ is provided to them while they are functioning as a commission member

immunity

"Broker": (A) means a person who,____

in exchange for a commission or other valuable consideration or with the expectation of receiving a commission or other valuable consideration

The Texas Real Estate Commission has the power to issue an ____ . An ____ is an order that prevents a person from starting or continuing a specific action.

injunction

A __ is a type of easement used for passing through another's land.

right of way

TREC has the authority to adopt and enforce ____

rules for governing real estate practitioners.

In the initial offer, the buyer usually asks that the ____ pay for the title policy

seller

Committee members serve staggered ____ -year terms

six

If a person's license is expired for ____ months or longer, they cannot renew it. They must apply for a new license.

six

The governor-appointed public member term expires every ____ years. Whew, you got all those numbers?

six

the unlicensed person practicing real estate could pay up to ____ times the amount they received

six

TREC members serve six-year terms that are ____

staggered

(a) The commission shall develop and implement policies that provide ____ with a reasonable opportunity to appear before the commission and to speak on any agenda item at a regular commission meeting

the public

The commission may not adopt a rule restricting advertising or competitive bidding by a person regulated by the commission except ____

to prohibit a false, misleading, or deceptive practice by the person.

To fully comprehend their duties and how the Commission must function, the members of the Commission are required to go through ____ .

training

Continuing education courses are courses taken by agents every ____ years in order to renew their license.

two

The governor's appointed TREC commissioners must be confirmed by ____

two-thirds of the Texas senate.

Members: ____ (All appointed by the governor and confirmed by at least ____ of the Texas Senate.)

9 2/3

Newly licensed agents must take an additional ____ hours of qualifying real estate education (98 total)

90

newly licensed agents must take additional continuing education (____ classroom hours of coursework) prior to their first license renewal.

90

A new license holder may be thinking about becoming a broker someday. The educational requirement to achieve this is the completion of ____ classroom hours

900

What law (chapter) imposes a code of ethics and standard of conduct on members of the Commission?

Every single employee of the commission is subject to the code of ethics and standards of conduct imposed by Chapter 572.

(b) The commission may not prohibit a license holder from using for the sale, exchange, option, or lease of an interest in real property a contract form that is: ____

(1) prepared by the property owner; or (2) prepared by an attorney and required by the property owner.

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

(1) the attendance of witnesses for examination under oath (2) the production for inspection and copying of records, documents, and other evidence relevant to the investigation of an alleged violation of this chapter.

Any person who takes the exam should receive their results within ____ days. If it's going to take more than ____ days, TREC will reach out to the test taker(s) and explain the reason for the delay.

10

Experienced sales agents must take an additional ____ elective continuing education hours (18 total)

10

If the broker moves and changes their address, the broker, no later than ____ days after the move, needs to submit an application to the Commission

10

If the designated broker owns less than ____ % of the company, errors and omissions insurance is required.

10

You have two font sizes you can use with your notice links online: ____

10 point if you spell out the Commission's name: Texas Real Estate Commission Consumer Protection Notice 12 point if you use the Commission's abbreviated name: TREC Consumer Protection Notice

The Sunset Act is a common state law, which, in Texas, requires the Sunset Commission to evaluate all state agencies every ____ years with respect to their: ___

12 Efficiency Need for their continued services

The Broker-Lawyer Committee consists of ____ members.

13

The Texas Real Estate Broker-Lawyer Committee consists of ____ members

13

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 A public official while engaged in official duties An on-site manager of an apartment complex

How do you pay a penalty while still ensuring that your payment does not go through until the appeal is over?

A supersedes bond delays your payment until your appeal has ended. It is good to know your options when dealing with penalties and appeals.

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.

Committee Purpose: ____

Adopt and enforce rules for governing Texas real estate practitioners

After receiving a notice of violation, how many days does a license holder have to request a hearing?

After receiving a notice of violation, a license holder has 20 days to request a hearing.

All listing contracts in Texas must include two pieces of information: the special rules concerning anyone who lives on a coast and what else?

All listing contracts in Texas must include two things: information informing sellers about the special rules concerning anyone who lives on a coast and that all commissions are negotiable.

It's a rule that this form ____ needs to be near the front door of every real estate office and branch location. This form provides the information necessary to file a complaint with TREC.

Consumer Protection Notice TREC No. CN 1-2

There is not a requirement that a real estate office carry errors and omissions insurance unless the owners create a business entity. In other words, a broker who owns their company as a sole proprietor does not have to have that type of insurance policy. Once creating an ____ however, it would be necessary.

LLC or an S Corporation,

____ title insurance is a different and separate — but necessary — type of title insurance. Mortgagee title insurance is paid for by the buyer

Mortgagee

What categories of people are barred from serving on the Commission?

Neither trade association employees nor lobbyists can be members of the commission.Neither trade association employees nor lobbyists can be members of the commission.

____ members are brokers appointed by the Commission

Six

____ members are lawyers appointed by the President of the State Bar Association

Six

____ is a government agency created by the Texas Legislature to enforce TRELA.

TREC

____ enforces the rules and regulations laid out in ____ .

TREC TRELA

Chapter 1101 of the Texas Occupations Code is the Real Estate License Act, also known as ____ .

TRELA

____ is a law passed by the Texas Legislature to govern Texas real estate.

TRELA

The President of the ____ appoints the six attorneys to the Committee.

Texas Bar Association

Today, TRELA is a part of the ____ , Chapter 1101.

Texas Occupations Code

The ____ is a committee that creates and corrects contract forms to be used by Texas real estate license holders.

Texas Real Estate Broker-Lawyer Committee

The ____ appoints the six brokers to the Committee.

Texas Real Estate Commission

The ____ is a law that governs the licensing, education, and activities of real estate license holders practicing brokerage in Texas.

Texas Real Estate License Act (TRELA)

After how many days will the Commission notify an applicant of their moral determination?

The commission will notify the applicant of their moral determination within 30 days.

the state legislature has stated that there are two things that have to be included in all listing contracts:

The first one is a line indicating that all commissions are negotiable. The second one is to inform sellers about the special rules concerning anyone who lives along the coast.

Licensed brokers are liable to: ____

Their clients The public (customers) The Commission

"Sales agent" means ____

a person who is sponsored by a licensed broker for the purpose of performing an act described by Subdivision (1).

An ____ is an abbreviated history of a property, including info on any transfers, grants, wills, conveyances, liens, and encumbrances.

abstract of title

"Real estate" means ____

any interest in real property, including a leasehold, located in or outside this state.

The Texas Real Estate Commission (TREC) is a group of ____ appointed people who regulate real estate activity and licensees in Texas to ensure laws are followed and consumers are protected.

nine

Here's a tip and it's important, so I'm gonna put it in bold: A person has ____ year from the date the application is filed to take the state examination.

one

If it's expired for 90 days or less, the applicant has to pay ____ times the regular renewal fee.

one-and-a-half

Section 1101.106 of the code states that the executive director of TREC has to maintain a written policy to ensure the implementation of an equal ____ employment program.

opportunity

This section of TRELA has an important message for the new license holders: you are not to practice real estate until the license ____

physically arrives at the broker's office.