State Exam
The maximum tenancy that may be addressed in a Texas Real Estate Commission Seller's or Buyer's Temporary lease is A.) 90 days. B.) 72 hours. C.) 48 hours. D.) 180 days.
A
What can TREC do if a licensee does not comply with a subpoena A.) File suit through the Attorney Generals office B.) File a complaint with the BBB C.) File suit through the State Board of Realtors D.) Contact the Broker's attorney directly for mediation
A
When a licensee acts in the capacity of a principal he may create his own contract form? A.) TRUE B.) FALSE
A
When investigation files are opened by the Texas Real Estate Commission A.) They will stay confidential until an investigation is complete B.) They will be of public record C.) They will be recorded once a hearing has be started D.) None of the above
A
A Real Estate broker's license is NOT required of a person who A.) Offers to list real estate for sale. B.) Attempts to negotiate the rental of real estate for another in exchange for one month's rent. C.) Advertises and leases his or her own properties. D.) Agrees to negotiate a trade for another for a fee.
C
Each resident broker must maintain a fixed office within Texas. What must a broker do when he or she wants to maintain multiple offices? A.) Register each office location with the licensing department of the Texas Real Estate Commission. B.) Register each office location with the county clerk where the assumed name form is filed. C.) Employ a broker-manager for each location. D.) Obtain a branch office license for each location.
D
Earnest money A.) Constitutes consideration B.) is required on all valid contracts C.) is always 1 percent of the sales price D.) is a gesture of good faith
D
In order for a broker to bring suit to collect a brokerage fee, the broker must do all of the following EXCEPT A.) Obtain a written employment agreement signed by the person to be charged. B.) Be actively licensed. C.) Notify the buyer in writing to have the abstract examined by an attorney. D.) Have the transaction close.
D
Rules and regulations set by the TREC A.) must be approved by a district court B.) are preassigned by the attorney general C.) must be approved by the Texas senate D.) have the same full force and effect as law
D
The buyer of a cooperative apartment receives shares in the cooperative and a A.) Bargain and sale. B.) Limited partnership. C.) Joint tenancy. D.) Proprietary lease.
D
Under the Texas Real estate Licensing Act, all of the following actions are cause to suspend or revoke a license held by a broker or salesperson EXCEPT A.) Threatening to sue a party for a commission to which you are not entitled. B.) Guaranteeing that profits will result from the resale of an offered property. C.) Listing community property without the signatures of both spouses D.) Offering property for sale without a signed listing agreement.
D
The broker must be licensed and _________ in order to receive a commission A.) employed B.) sponsor at least one salesperson C.) be a member of the Board of Realtors D.) own a real estate company
A
Who is in the Real Estate Broker Lawyer Committee?
13 members: 6 appt'd by commission, 6 members of the state bar, 1 general public appt'd by governor
What are the continuing education requirements for a broker?
18 classroom hours: - 6 hour broker responsibility - 4 hour legal update 1 - 4 hour legal update 2 - 4 hour approved CE course
What are the education requirements for a sales agent?
180 hours: 60 in Real Estate Principles, 30 in Law of Contracts, 30 in Law Agency, 30 in Electives
What does TREC consist of?
9 commissioners: 6 brokers and 3 general public
What are the continuing education requirements for a sales person?
90 hours plus 4 of legal update 1, 4 of legal update 2
What are the education requirements for a broker?
900 hours & a min of 4 years as an active licensure along with: - 3600 points - 30 hour course "Real Estate Brokerage"
A person is NOT required to have a Texas real estate license when: A.) offering an employer's property for rent B.) locating apartments for a tenant C.) selling real estate for another person D.) procuring prospects for the purpose of renting specific properties
A
A salesperson wants to offer a home for sale by lottery. This method is: A.) prohibited and grounds for suspension or revocation of their license B. Seller C.) permissible since the adoption of the Texas State Lottery D.) permissible only after a real estate lottery permit is obtained for that property
A
According to the Real Estate License Act of Texas, which one of the following actions is a fair and impartial act for an intermediary? A.) appointing associated licensees to work with the parties B.) appointing subagents to work with the parties C.) agreeing to represent only the owner D.) agreeing to represent only the buyer
A
Andrew Wang filed an application for licensure with the Texas Real Estate Commission. The application was rejected. Which of the following would be the reason for which the application was rejected? A.) Andrew turned seventeen on his birthday last month. B.) Andrew has not been a resident of Texas for a full six months before filing the application. C.) In trying to meet the educational requirements for licensing, Andrew failed to obtain a passing score on two of the six core courses he took. D.) Andrew had not found a broker with whom he wished to enter into an independent contractor working agreement.
A.
A receptionist told a broker about a client who was looking for a new house. The broker contacted the receptionist's client and sold him a home. May the broker pay the receptionist for the lead? A.) A gift with a value of not more than $50 may be given. B.) Only a thank you note is permitted. C.) Absolutely not. D.) Yes, but not more than $50.
A. A gift may be given to a non-licensed person but there is a limit of $50 in value. Cash is not acceptable or a gift card that can be redeemed for cash is also not acceptable
A violation of a provision of the Texas Real Estate License Act constitutes what type of legal violation? A.) A class A misdemeanor. B.) A felony. C.) A class C misdemeanor. D.) A class B misdemeanor.
A. A violation of the TRELA is a class A misdemeanor and can result in jail time and or fines. A class A misdemeanor is the highest misdemeanor and is just below a felony
Which of the following would be considered a part of community property owned by a married couple that are legal residents of the state of Texas? A.) The interest income from the certificates of deposit owned by the wife and purchased with the proceeds of her personal injury settlement. B.) Two rent houses owned free and clear by the husband prior to marriage. C.) A $500,000 inheritance received by the husband from the estate of his grandmother. D.) The house that was left to the wife when her mother passed away
A. Property owned prior to the marriage is considered separate property and any property inherited by either husband or wife is once again considered separate property.
Who can TREC file suit through for subpoena?
Attorney general
A closing occurs on July 5. According to the terms of the agreement created by using the Texas Real Estate Commission 20-11 form, which of the following statements is true? A.) The seller is responsible for paying the ad valorem tax for July 5. B.) The buyer will be responsible for paying the ad valorem tax for July 5. C.) The seller will pay the ad valorem taxes for the current year prior to closing. D.) Ad valorem taxes will be prorated to the day of closing
A. The seller is considered to own the property the day of closing and therefore would be responsible for the taxes the day of closing
How many companies are required to be involved for an intermediary transaction to occur A.) 1 B.) 2 C.) 3 . D.) 4
A. When a broker is in the intermediary position, his/her company is employed by both the seller and the buyer and represents both parties to the transaction
When can TREC investigate?
After written complaint filed within 4 years of the incident. If person filing complaint wishes to have judgement paid by recovery fund, timeline is 2 years
What can a licensee do to appeal a subpoena?
Appeal to district court within 30 days
Who appoints commissioners? For how long?
Appointed by governor for 6 year terms
When offering property for cooperation through the Multiple Listing Service, the listing broker is assuring all of the following EXCEPT that A.) The seller has the authority to sell. B.) Any offer will be accepted as written. C.) The information in the data base is deemed to be accurate. D.) Cooperating brokers will be compensated upon completion of the sale.
B.
An applicant for a Texas real estate salesperson's license must be A.) at least 21 years old or married and a resident of Texas for at least six months when the application is filed B.) at least 18 years old and a resident of Texas when the application is filed or a legally admitted alien C.) at least 18 years old and a resident of Texas for a minimum of six months D.) at least 21 years old and resident of Texas or a lawfully admitted alien
B
As an independent contractor for a real estate broker, a real estate salesperson has the authority to A.) Act as an agent for another person. B.) Assume only responsibilities assigned by the broker. C.) Act independently when he or she disagrees with the broker. D.) Make contracts and receive compensation directly from the principal.
B
Parties can be compelled to take dispute to mediation prior to being able to initiate litigation by A.) Either party. B.) A judge. C.) The Texas Real Estate Commission. D.) A broker
B
Possession by the buyer is generally delivered upon: A.) Closing B.) closing and funding C.) when the loan is approved D.) When the broker gets paid
B
When no promulgated form meets the needs of a particular transaction, the license may use which of the following? A.) Any standard form sold at the office supply store. B.) A form created by a Texas licensed attorney for that type of transaction C.) Any of the State Bar standard forms. D.) A form structured and approved by a licensed attorney at law.
B
When the licensee functions as a principal and not an agent A.) Particular care must be taken to use TREC forms B.) A form other than one promulgated may be used C.) He/she need not disclose that he/she is a licensee D.) An attorney must draw the contract
B
Which of the following terms is most synonymous with the buyer when two licensees are functioning as a listing agent and as a sub-agent? A.) Client. B.) Customer. C.) Facilitator. D.) Principal
B
Who or what requires a person to hold a license issued by the Texas Real Estate Commission prior to performing acts of brokerage such as selling, leasing, or locating real property for sale or lease? A.) The Governor of Texas. B.) The Texas Legislature. C.) The Texas Statute of Frauds. D.) Texas Real Estate Commission.
B
Which of the following is NOT registered, licensed, certified or regulated by the Texas Real Estate Commission? A.) Residential rental locator's. B.) Appraisers. C.) Residential service contract companies. D.) Easement and right-of-way agents.
B.) Appraisers. Appraisers are not regulated by the Texas Real Estate Commission
The statement " A broker must be employed to recover a commission for his or her services" means that the A.) Broker must work in a real estate office. B.) Seller must have signed an agreement to pay a commission to the broker for selling the property. C.) Broker must have a salesperson employed in the office. D.) Broker must have signed the listing agreement
B. The seller has "hired" the broker to help him/her market their property and find a ready, willing and able buyer. This is done by having a signed listing agreement (employment contract) with the seller stating how the commission will be paid and the amount that the broker will receive
Jamie owned the fee simple title to a vacant lot adjacent to a hospital and was persuaded to make a gift of the lot to the hospital. She wanted to have some control over its use, so her attorney prepared her deed to convey ownership of the lot to the hospital "so long as it is used for hospital purposes." After completion of the gift, the hospital will own a A.) Fee simple estate. B.) Determinable fee estate. C.) Leasehold estate. D.) Reversionary interest.
B. A determinable fee estate states that the owner of the property must use the property as per the agreement. If the owner tries to sell or use the property for another purpose the property will revert back to the grantor of the determinable fee estate
Under the authority of a broker or salesperson license, a Real estate licensee may A.) Recommend the best choice for the seller to make from the remedies in the default paragraph when a buyer defaults. B.) Fill in the blanks to reflect the wishes of the party being represented. C.) Explain the legal significance of the clauses contained in the Texas Real estate commission promulgated forms. D.) Prepare a Bill of sale to convey any personal property from a seller to a buyer.
B. A licensee may not give legal advise. However they may fill in the blanks of a real estate contract as directed by the parties. Remember, the contract is between the purchaser and the owner, not the licensee's
To determine an encroachment, the purchaser should obtain A.) Title insurance. B.) A survey. C.) A title search. D.) A current opinion from an attorney.
B. An improvement survey will determine if there are any encroachments on the subject property
Which of the following is true of a joint tenancy? A.) Spouses may not own community property with right of survivorship. B.) The conveyance must specifically state the intention to create a joint tenancy. C.) Joint tenants need to hold an equal interest in the property. D.) The death of one joint tenant destroys the joint tenancy relationship of other parties.
B. Because most people do NOT want to be joint tenants, in order to have joint tenants the conveyance must state that they do want to hold the property as joint tenants
The option to purchase agreement A.) Is not legal in Texas B.) Requires a fee for specified time period C.) Requires that the option money must be refunded if the buyer does not buy D.) Allow the buyer to get his option money returned if he/she does not qualify for the loan
B. In order to have a valid option, some money must exchange hands or there is NO option agreement There is no minimum amount.
If a property is subject to a forced sale for property taxes, how long does an homeowner have to regain legal title A.) 5 years B.) 2 Years C.) 1 year D.) 6 Months
B. The "key" word here is "homeowner". As a homeowner you have two years to reclaim your property after the tax foreclosure sale. All property owners have a minimum of 6 months to reclaim their property after the tax foreclosure sale.
The Sellers estimated charges Form is used to close all new loans, one-to-four family residential properties. A.) True. B.) False. C.) D.)q
B. The HUD-1 is the form used at closing on all one-to-four residential properties. This shows all the buyers and sellers expenses.
When must a licensee present the statutory "Information About Brokerage Services" to a prospective seller or purchaser? A.) At the first contact unless it occurs at open house. B.) At the time a meeting occurs where substantive discussion about a specific property takes place. C.) At the first contact.. D.) Before closing a transaction in which the broker's company represents both the buyer and the seller
B. The IABS needs to be presented to any party before any substantive discussion takes place about any specific property. This allowing that party to understand the relationship between the parties involved
If a salesperson is in a room where two brokers are talking about raising their commission rate because business is slow and they believe that they could raise the rate together and control what clients are required to pay, the agent should A.) Leave the room without commit B.) Denounce that they have anything to do with the conversation and will not be a part of the discussion and leave the room C.) Join in the conversation to be aware of the new rate increase D.) Tell everyone in the office about the new commission rate
B. The agent should make sure that the brokers know that he/she is not a part of the conversation and leave the room. This is your best defense against being involved in price fixing
To collect a commission through litigation, the seller's broker is NOT required to prove A.) He or she was duly licensed at the time the services were commenced. B.) The buyer was aware of the commission amount. C.) The seller signed a written agreement to pay the fee. D.) The required title notice was provided to the buyer.
B. The buyer does not have to be aware of the amount of commission that the seller's (listing) broker is receiving as compensation
The Texas Real Estate Commission is not empowered to A.) Adopt a seal of design, which it shall prescribe. B.) Increase license fees when more money is needed to run the agency. C.) Name and select an administrator. D.) Make rules and regulations necessary for the performance of its duties and establish standards of conduct for its licensees
B. The commission is funded by the state and any increase of licensing fees must be approved by the state
Which of the following is NOT an addendum promulgated by the Texas Real Estate Commission? A.) Release of Liability on Assumption of FHA, VA or Conventional loan, Restoration of Seller's Entitlement for VA guaranteed Loan. B.) Addendum for Seller's Disclosure Of Information on Lead-based paint and Lead-based paint hazards. C.) Seller's temporary lease. D.) Addendum for sale of other Property by buyer.
B.) Addendum for Seller's Disclosure Of Information on Lead-based paint and Lead-based paint hazards.
What are the educational requirements for the first renewal of a sales agents license A.) Complete 60 hours of core courses plus four hours of Legal Update 1 and four hours of legal update B.) Complete 90 hours of core courses plus four hours of Legal Update 1 and four hours of Legal Update C.) Complete 60 hours of core courses plus three hours of Legal Update 1 and three hours of legal update D.) Complete 90 hours of core courses plus three hours of Legal Update 1 and three hours of legal update
B. The requirement is 90 hours of core real estate classes, four hours of Legal Update 1, four hours of Legal update. A total of 278 by the end of their second year
In a listing agreement, if the property is under contract with a buyer and the listing expires, is the broker still entitled to a commission A.) No B.) Yes C.) Only if the seller signs a new listing agreement D.) Only if there is an automatic extension written into the original listing agreement
B. The seller has hired you to find them a buyer for their property and you have done just that, therefore you do NOT have to extend the listing agreement. You have earned your commission, you just will not receive the commission until closing of the sell. Remember listing agreement cannot have automatic extension agreements
Alley lives in the elegant Howell Tower. If a proprietary lease evidences her possessory interest, what does she own? A.) A condominium unit. B.) A cooperative unit. C.) A timeshare. D.) A leasehold.
B. With a cooperative, the property is owned by the cooperative and each share holder owns stock in the cooperative with the right to occupy one of the units under a proprietary lease
If mold is not currently present and there is no evidence of ever being a mold issue, is the seller require to disclose to a purchaser that the property had mold but has been remediated? A.) Only if it has been less than one year since the mold issue has been resolved B.) No, not if the issue has been taken care of and there is no evidence of any mold being present at the time of the sale. C.) Yes, if mold remediation has been performed in the past five years D.) No
C
If the designated broker does not own a minimum of 10% of the company and is applying for a license, the following are also a requirement when applying A.) Maintains E&O insurance with a minimum about of $1,000,000 B.) Use the Certificate of Insurance for a Broker Business Entity form C.) Both A & B D.) There are no such requirements
C
It is unlawful for a person to act as a real estate salesperson unless A.) The property owner or the prospective buyer gives such person a written statement acknowledging the unlicensed status of such person B.) Such person is employed in a clerical capacity by a licensed real estate broker. C.) Such person is legally associated with a licensed Texas Real Estate broker. D.) Such person is acting as the agent of the property owner.
C
The Texas Real Estate Commission was created by TRELA in: A.) 1968 B.) 1939 C.) 1949 D.) 1919
C
To be eligible for a real estate license, and individual MUST: A.) be at least 21 years of age B.) prove competence by completing a number of core courses C.) satisfy the Commission as to the individual's integrity D.) be a resident of Texas for at least 60 days
C
What document does the seller have to provide to the buyer under 5.008 of the Texas Property Code A.) Listing agreement B.) Property Condition Addendum C.) Seller's Disclosure Notice D.) Copy of the survey
C
When a "fixture" in a property does not remain for the buyer, how do we inform the buyer of that fact? A.) List the item as not included in the listing agreement B.) List the item on the "Sellers Disclosure Notice" C.) List the item on the "Residential Contract" D.) List the item on the "Amendment" form
C
When a buyer does NOT receive the Seller's Disclosure Notice before signing the contract to purchase, they may A.) Reduce the sales price to cover any necessary costs B.) file a complaint with the Texas Real Estate Commission C.) Terminate the contract within 7 days after receiving notice D.) sue for 3 times the amount of their earnest money
C
What must be displayed on all websites and Facebook pages A.) Information about Brokerage Services only B.) Consumer Protection Notice only C.) Information about Brokerage Services and Consumer Protection Notice D.) Neither are required to be displayed on your company website
C.
Nick has permission from Anthony to hike on Anthony 's land during the autumn months. Nick has a(n) A.) Easement by necessity. B.) Easement by prescription. C.) License. D.) Restriction.
C. A license is the right that the property owner give another to use his/her property. The right may be revoked at anything by the property owner
A real estate broker who engages salespeople as independent contractors must A.) Withhold income tax and Social Security from all commissions earned by them. B.) Require them to attend sales meetings and to participate in office insurance plans if the broker requires other salespersons hired as employees to do so. C.) Refrain from controlling how the salesperson conducts his or her business activities. D.) Provide employee benefits.
C. Although a broker may control WHAT an agent may do, the broker CANNOT tell the agent HOW to do his or her daily business activities. These would be treating the independent contract as an employee
If the owner of real estate in Texas does not take action to force removal of an encroachment before ten years have passed, then the encroachment may continue through a(n) A.) Easement by necessity. B.) License. C.) Easement by prescription. D.) Right by prior appropriation.
C. An easement by prescription may exist if the property owner does not take action within the prescribed time. In Texas that time frame is 10 years if the person uses the land and the owner of the property does not stop the use.
Which of the following is NOT acceptable language for Special Provisions in paragraph 11? A.) Buyer will pay for the owner's title policy and the mortgagee's policy. B.) Seller will pay for the appraisal called for in paragraph 12. C.) Time is of the essence when interpreting the provisions of this agreement. D.) Buyer will do a walk through prior to closing the transaction.
C. An licensee is prohibited from practicing law and can not add any details changing the provisions of the contract. The licensee may add factual information agreed to by all parties
Beth, Shawn and Brad were co-owners of a parcel of real estate. When Shawn died, his interest passed, according to his will, to become a part of his estate. Co-owner Shawn was a(n) A.) Life tenant. B.) Joint tenant. C.) Tenant in common. D.) Owner in severalty.
C. As a tenant in common each property owner has a undivided interest in the property with the right to devise (will) the property to another up on their death
The term separate property is MOST CLOSELY associated with which of the following? A.) Joint tenancy. B.) Tenancy in common. C.) Community property. D.) Partnership.
C. Community property is property owned by both husband and wife. So when talking about separate property it relates back to property owned by the husband or wife that was acquired before the marriage or acquired after the marriage because it was inherited or received by some other means that does not qualify as community property
At a listing presentation, what is the first document the seller should see A.) Seller's Disclosure Notice B.) The listing agreement C.) 1-4 Family Residential Contract D.) Information about Brokerage Services
D
When a buyer makes a request to a seller to amend a contract during the option period and the seller fails to respond, what is the status of the contract two days after the option period has expired? A.) The contract incorporates the buyer's requested changes and moves to closing since the seller did not object to the changes. B.) The option period is automatically extended until the seller responds. C.) The contract is enforceable and the buyer is obligated to complete the transaction under the original terms and conditions. D.) The contract is null and void because the request to amend serves as adequate notice that the buyer does not wish to proceed
C. If the purchaser request the seller to amend the contract and the seller does not respond before the option period has expired then the contract is accepted as original written
Which of the following is NOT a "Loan Fee" as identified in paragraph twelve of the 20-11 Texas Real Estate Commission promulgated contract? A.) Loan origination fee. B.) Buy-down fee. C.) Loan funding fee. D.) Loan commitment.
C. Many loan fees are listed in paragraph 12 of the contract. The loan funding fee is not listed as a loan fee
According to the TREC One-to Four Family Residential Contract (RESALE), who is responsible for paying the owner policy of title insurance fee? A.) The Buyer. B.) The Seller. C.) The title company named in the contract. D.) The party stipulated in the contract.
D
A.) Command the production of documents and the appearances of witnesses for hearings conducted by it. B.) Hire an administrator to supervise the activities of the employed staff at the Texas Real Estate Commission C.) Increase the education requirements for a person desiring a broker license. D.) Initiate an investigation of a licensee upon a signed complaint submitted by an unhappy consumer of Real Estate brokerage services
C. The current requirement for a brokers license is 900 classroom hours, four year active experience, must complete a 30 hour "Brokers Responsibility Course" and acquire at least 3600 "experience" points
One found guilty of a violation of the Texas Deceptive Trade Practices Act will face which of the following consequences? A.) Will automatically be assessed treble damages. B.) Civil penalties equal to three times the amount of damages plus criminal penalties of up to $50,000. C.) The possibility of being assessed treble damages. D.) Loss of his real estate license, jail time and punitive damages equal to twice actual damages.
C. The maximum amount that can be awarded is three times the amount of the actual damages under the DTPA
A person may not sell, lease, or transfer an easement or right-of-way used for utility, railroad or pipeline service for another for compensation unless the person: A.) holds a real estate license issued by TREC B.) holds a certificate of registration issued by TREC C.) either A or B D.) neither A or B
C. The person must either hold a real estate license or hold a certificate of registration issued by TREC if they expect to receive compensation
In paragraph #3B of the sales contract, "the sum of all financing": A.) Includes the earnest money deposited at the time the contract is executed. B.) Includes the down payment. C.) Excludes the Private Mortgage Insurance and Mortgage Insurance Premium. D.) Excludes the loan amount.
C. The private mortgage insurance or mortgage insurance premium is not included in paragraph 3B. The mortgage company will determine if this is required and include in the financing of the property
Which of the following people would need to obtain a Real Estate license if they were involved in a Real Estate activity? A.) The executor of an Estate. B.) A court-appointed guardian. C.) One who sells lots in a mobile home park. D.) A trustee of the bankruptcy court.
C. The selling of lots is the true form of real estate and therefore in order to sell property for another you must have a real estate license
Which of the following does the Texas Real Estate Commission NOT have the authority to do? A.) Command the production of documents and the appearances of witnesses for hearings conducted by it. B.) Hire an administrator to supervise the activities of the employed staff at the Texas Real Estate Commission. C.) Increase the education requirements for a person desiring a broker license. D.) Initiate an investigation of a licensee upon a signed complaint submitted by an unhappy consumer of Real Estate brokerage services.
C.) Increase the education requirements for a person desiring a broker license.
The relationship of a salesperson to their sponsoring broker is A.) An employer-employee relationship B.) A Universal agent C.) Subject to all laws and rules of agency D.) A special agent
C.) Subject to all laws and rules of agency
For there to be a valid right to purchase or terminate, an option contract must contain A.) At least 7 days to back out of the agreement. B.) Notice to terminate. C.) A right of rescission. D.) Dollar consideration.
D.
When must the buyer receive the Seller's Disclosure Notice A.) When they sign the contract B.) When they first see the property C.) Before their first payment in made D.) Prior to making an offer on the property
D. A buyer must receive the Seller's Disclosure Notice prior to making any offer on the property or the contract becomes voidable
The Third Party Financing Condition Addendum is not used with: A.) Conventional financing B.) FHA financing C.) VA financing D.) Seller financing
D. If the property is being "seller financed" then there is no third party (meaning an outside mortgage company) and therefore there would be no "Third Party Financing Addendum"
A real estate salesperson decides to sell his own property without using a broker. In offering his property for sale, what must the salesperson do? A.) He is prohibited by law from selling his own property without using his broker. B.) He is exempt from the need to disclose anything since he is acting solely as a private citizen. C.) He must disclose the name, address and telephone number of his sponsoring broker. D.) He must disclose to the buyer that he holds a real estate license.
D. Once you become a licensee you must disclose this fact when selling or buying a home even if for your own property
The Real Estate Recovery Fund has a balance of $699,000 at the end of a calendar year. What is the Texas Real Estate Commission authorized or required to do? The Real Estate Recovery Fund has a balance of $699,000 at the end of a calendar year. What is the Texas Real Estate Commission authorized or required to do? A.) Divert money collected for the Texas Real Estate Center to the Recovery Fund until the Fund's balance is restored to $1,700,000. B.) Limit payments from the fund to only the most worthy claimants. C.) Suspend payments until enough is collected from new licensees to replenish the fund. D.) Assess each licensee a prorate share to replenish the fund.
D. The fund is administered by TREC. If at the end of the calendar year the fund is below $1,000,000, the commission is authorized to assess each real estate license holder on certification of their license during the following calendar year, a fee not to exceed $10.00 or a prorated share of the amount necessary to bring the fund to $1,700,000. If the fund, on December 31 of any year is more than $3,500,000, or more than the amount paid out in the 4 previous years, the excess is transferred to the general revenue fund. If the funds do not fall below the statutory minimum, TREC will invest the funds.
Which of the following is NOT an agreement that must be reduced to writing to be enforceable? A.) Open listing. B.) Exclusive-right-to-sell listing C.) Exclusive-agency listing. D.) Multiple listing.
D. The information entered into the multiple listing service, is not an agreement between the seller and broker. The seller (principle) does authorize the broker to enter the information into the MLS, which is stated in the listing agreement.
The maximum amount recoverable from the Real Estate Recovery Fund for losses caused by one licensee is A.) 40,000 per claimant B.) 60,000 per claimant C.) 75,000 for all claimants combined D.) 100,000 for all claimants combined
D. The maximum amount that will be paid on any one licensee is $100,000. There is a maximum of $50,000 per transaction no matter how many claimants.
Prepaid items could include: A.) Prepaid insurance. B.) Prepaid taxes. C.) Prepaid interest. D.) All of the above.
D. The most common prepaid items are: Insurance, taxes, and interest
Which of the following is the Texas Real Estate Commission NOT empowered to do? A.) Contract with a national firm to write and administer an exam to determine competency of a licensee applicant. B.) Suspend or revoke the license of a broker found guilty of giving legal advice. C.) Publish forms for mandatory use by those to whom it issues a broker or salesperson license. D.) Make a payment from the Recovery Fund to pay the legal fees of a salesperson that was found to be innocent.
D. The recovery fund can only pay the aggrieved person who receives a judgement from a licensee in a court of law
A person empowered to act for another is the ____________ A.) Broker B.) Buyer C.) Seller D.) Agent
D.) Agent An agent is given the authority to act for another, the principle. The listing agreement gives the authority for the broker (agent) to act for the seller (principle)
The Real Estate Recovery Fund has a balance of $699,000 at the end of a calendar year. What is the Texas Real Estate Commission authorized or required to do? A.) Divert money collected for the Texas Real Estate Center to the Recovery Fund until the Fund's balance is restored to $1,700,000. B.) Limit payments from the fund to only the most worthy claimants. C.) Suspend payments until enough is collected from new licensees to replenish the fund. D.) Assess each licensee a prorate share to replenish the fund.
D.) Assess each licensee a prorate share to replenish the fund. If the recovery fund drops below $1,000,000 at the end of a calendar year, each licensee will be assessed $10 or their share to bring the fund back to a minimum of $1,700,000
Which of the following would be acceptable language to enter in the "special provision" paragraph of a Texas Real Estate Commission promulgated contract form A.) This contract is contingent upon the sale of the buyer's present home B.) Buyer may terminate this contract for any reason within 10 days of the effective date C.) The contract is contingent upon satisfactory appraisal for the amount of the sales price D.) Buyer will do a "walk-through" of the property one day before closing
D.) Buyer will do a "walk-through" of the property one day before closing
Possession of the property is normally delivered to the buyer: A.) At the time the contract is executed. B.) At the time the buyer is approved for the loan. C.) When the real estate agents say so. D.) Upon the funding of the loan.
D.) Upon the funding of the loan.
What are the 3 ethics for real estate?
Fidelity, Integrity, Competency
Who drafts and revises TREC promulgated contracts?
Real Estate Broker Lawyer committe
VA sets limit on the loan amount of up to _____ _____ the veteran's entitlement.
four times
What is TREC's purpose?
protect the public
