LOC Ch01 - TEXAS CONTRACT LAW

Listing contracts must include the verbiage that "commissions are negotiable." A. True B. False

A. True

Paragraph 23 of the contract is called the Option paragraph. In essence, this paragraph gives the buyer the unrestricted right to terminate the contract for any reason within a certain time frame. A. True B. False

A. True

The primary purpose of the Deceptive Trade Practices Act is to protect the consumer against false, misleading, and deceptive business practice and unconscionable actions. A. True B. False

A. True

When was the Texas Real Estate Commission created? A. 1909 B. 1949 C. 1929 D. 1960

B. 1949

Are licensed real estate agents legally authorized to draft a document that affects the interest in a property? A. Yes B. No

B. No

How many total members serve in the Joint Broker-Lawyer Committee? A. 10 B. 6 C. 13 D. 20

C. 13

Who must sign the contract? A. Only the sellers B. The buyers only C. The broker and the buyer D. All parties mentioned as "buyer" and "seller" in paragraph 1

D. All parties mentioned as "buyer" and "seller" in paragraph 1

The Joint Broker-Lawyer Committee is made up of all of the following people EXCEPT: A. Real estate brokers B. Lawyers C. Public members D. Appraisers

D. Appraisers

All of the following are requirements to obtain a real estate license EXCEPT: A. Must be a citizen of the United States or a lawfully admitted alien B. Must be at least eighteen years old. C. Must meet the education requirements D. Must submit an application only with a sponsoring broker

D. Must submit an application only with a sponsoring broker

An act or practice which, to a consumer's detriment, takes advantage of the lack of knowledge, ability, experience, or capacity to a grossly unfair degree is called a(n): A. Fraud B. Unauthorized practice of law by the broker C. Conveyance D. Unconscionable action

D. Unconscionable action

Which of the following practices could be considered practicing law by a real estate broker for the sale or lease of real property? A. Use of a form prepared by the broker's company B. Use of a form prepared by an attorney C. Use of a form prepared by the property owner D. Use of a form promulgated by TREC

A. Use of a form prepared by the broker's company

What are the number of course "clock" hours to obtain a real estate license? A. 90 B. 180 C. 60 D. There are no specific hours necessary if you have a 4-year college degree.

B. 180

When a seller and a buyer wish to convey personal property, this is done with: A. A deed B. A bill of sale C. A deed of Trust D. Nothing is required.

B. A bill of sale

When an offer becomes a contract, which step is NOT required? A. Signatures of buyer and seller are required. B. Both agents must meet to review the contract. C. Notice must be delivered to all parties. D. All changes to offer must be initialed.

B. Both agents must meet to review the contract.

Who does the Texas Real Estate Commission protect? A. Real estate brokers B. Consumers C. Real estate agents D. Title companies

B. Consumers

What Act created the Texas Real Estate Commission? A. The Deceptive Trade Practices Act B. The Texas Real Estate License Act C. The Easement and Right of Way Act D. The Texas Property Code

B. The Texas Real Estate License Act

Who does NOT need to use the TREC promulgated contract forms? A. A licensed residential real estate agent in Texas B. A licensed real estate broker in Texas C. A principal in a transaction D. A licensed commercial agent

C. A principal in a transaction

All of the following constitute the unauthorized practice of law EXCEPT: A. Anyone who drafts or revises a form or contract promulgated by TREC B. Anyone who advises a person regarding the legality of the title of a piece of property C. Anyone who prepares a net sheet for the seller D. Anyone who gives advice or opinions as to the legal effect of any contract

C. Anyone who prepares a net sheet for the seller