TEXAS REAL ESTATE (STATE) EXAM

Disclosure of Representation

At first contact with a party to a potential transaction a license holder must disclose to that party whom they represent (orally or in writing at 1st contact)

Which of the following statements is TRUE regarding TREC's Consumer Protection Notice?

B) TREC's Consumer Protection Notice must be displayed in each place of business the broker maintains and by each active real estate broker and sales agent.

In the event a payment is made from the real estate recovery trust account on behalf of a license holder, which of the following statements is TRUE?

B) The license holder's license may be revoked if a payment is made from the real estate recovery trust account.

If the Seller's Disclosure of Property Condition form is required but NOT provided at the time the purchase contract is signed, when can the buyer terminate the contract?

B) Within seven days after receiving the notice or before closing, whichever is earlier

Appointed associates of an intermediary broker may give

B) advice and opinions to respective clients.

A property is foreclosed on for nonpayment of property taxes. Generally, the defaulted owner of a homestead property has the right to

B) redeem the property within a two-year time limit.

A license holder, while acting as an agent for another, is a fiduciary and must act primarily to represent the interests of

B) the agent's principal.

Real estate brokers and sales agents may NOT offer legal advice, including

B) the best way to take title to real property.

According to the TREC One to Four Family Residential Contract, if the Seller's Disclosure of Property Condition is provided to the buyer as agreed, the buyer may terminate the contract within _____ days after they receive the notice.

C) Seven

Appointed associates of an intermediary broker may give

C) advice and opinions to respective clients.

Disclosure Obligations to Customers

Concerning agency status Concerning certain conditions affecting the property Concerning title issues Relevant material facts

The Texas Veterans Land Board (VLB) is a division of the

D) General Land Office of Texas.

The powers of the Texas Real Estate Commission (TREC) include which of the following?

D) Issue real estate licenses

A person who acquires goods and services is identified by the Texas Deceptive Trade Practices Act (DTPA) as a

D) consumer.

To act as an intermediary, a broker must have written consent from

D) each party being represented in the transaction.

To file a court action to collect unpaid fees, brokers or sales agents must do all of these EXCEPT

D) have an oral or written agreement regarding how the fees were to be paid and when they would be owed.

Duties to Customers under Commission Rules

Duty of fairness Duty of integrity Duty to be knowledgeable Duty to avoid misrepresentation Duty to disclose self dealing

TREC

The Texas Real Estate Commission- 6 broker members and 3 public members- created to administer the provisions of the license act- they promulgate contract forms for licensees and administers the provisions of TRELA

Statutory Law

The body of law enacted by legislative bodies (as opposed to constitutional law, administrative law, or case law).

An agent had a check made payable to the title company for earnest money. He held the check while the parties negotiated. On Monday, the 15th of the month, they reached an agreement and finalized the contract. The check has to be deposited with the escrow agent by the close of business on the:

on the 2nd working day after the contract is fully executed,

How many TREC promulgated amendment forms are there?

one

How can the IABS or disclosure of agency be delivered to a prospect?

personal delivery, mail, ABOVE the signature in email/attachment

what CANNOT an agent do in aid for completing the contract with client?

provide legal advice or draft legal documents

All of the following addenda are used with Paragraph 3 of the One to Four Family Resale contract regarding financing, except the:

reverse mortgage addendum

Tenant Ted rents an apartment under a three-year lease. Six months after signing the lease, he is transferred to another country for nine months. During this period, he leases the apartment to another person and collects rent from them to pass on to the landlord. What is this an example of?

sublease

Subagency

the fiduciary relationship between the subagent and the principal

What is the purpose of the TREC promulgated form Amendment to Contract?

to make any change

Under the Texas Property Code, a landlord of a residential dwelling is required to do which of the following?

A) Rekey the property no later than seven days after the new tenant moves in.

Forms are promulgated for mandatory use by Texas brokers and sales agents by which of the following?

A) TREC

A person who acquires goods and services is identified by the Texas Deceptive Trade Practices Act (DTPA) as a

A) consumer.

It is considered the unauthorized practice of law, as defined by TRELA, for a license holder to

A) explain the legal significance of specific preprinted contract clauses to a buyer or a seller.

A property is foreclosed on for nonpayment of property taxes. Generally, the defaulted owner of a homestead property has the right to

A) redeem the property within a two-year time limit.

At the first substantive dialogue with a party who is NOT represented, a license holder must provide the party with

A) the mandatory written statement concerning brokerage services.

Which of the following would constitute the unauthorized practice of law and/or be a violation of TRELA?

Adding or striking things from preprinted contract forms without instruction from the principals to the transaction

Ostensible Agency

Agency as a result of the actions of an agent and the response of others to those actions

Which of the following regarding forms promulgated by the Texas Real Estate Commission is TRUE?

Agents are required to use

Which of the following is true regarding the statute of limitations?

All claims must be filed prior to the statutory deadline or the legal right to press a claim is barred.

After a sales agent's first renewal, what is the continuing education requirement?

A) 18 hours every two years including 4 hours in Legal I and 4 hours in Legal II

a team of Realtors wants to make a company, under TREC Rules what are the Team Name Requirements?

- may not include any terms that could mislead the public to believe that the team is offering brokerage services independent from its sponsoring broker. - must end with the word "team" or "group". - must include the surname of at least one member of the team, in conjunction with the words "group," "team," or "associates."

what is paragraph 11?

Its a section of TREC one to four residential sale contract, 11 is a blank space available for inserting extra comments, but its permitted use by brokers and agents is limited to informational items

what is paragraph 7d-2?

Its a section of TREC one to four residential sale contract, is titled "ACCEPTANCE OF PROPERTY CONDITION" and has two sub-paragraphs. The first sub-paragraph states that the buyer accepts the property in its present condition, with any and all defects and without warranty.

What does the term commingling mean?

a broker putting a client's money into their own bank account.

Equitable redemption occurs before the auction of property and allows:

a defaulting debtor to pay the defaulted portion of the debt and prevent foreclosure.

If a foreclosure sale does not generate enough money to pay off the loan and cover the costs of the foreclosure, the lender might seek a ______.

a deficiency judgment.

power of attorney

a legal document authorizing someone to act on your behalf

what does Real Estate Broker-Lawyer Committee do?

acts as an advisory group that drafts and revises forms recommended adoption by TREC.

Which of the following regarding forms promulgated by the Texas Real Estate Commission is NOTTRUE?

agents can rewrite provisions use then at the agents will they cover all situations

What is a lease purchase agreement?

an agreement in which part of a tenant's rent is applied to a property's purchase; used when a tenant wants to buy a property but cannot immediately. TREC DOESNT HAVE IT

what must an unescorted tenant must do to get access to the property?

get a written permission from the owner

What must a broker do prior to accepting commissions, rebates, or fees from someone other than their client?

inform their client and get their consent

An advertisement that tends to create an impression or implies that a sales agent is responsible for the operation of the broker's real estate brokerage business:

is in violation of TRELA's advertising rules.

who inherits when the person dies without a will?

it goes to spouse and children, then parents if the spouse and children are dead

Who can brokers only authorize to withdraw or transfer money from a trust account?

license holders