Section 2: Contract Law in Texas

Unauthorized Practice of Law

Acting outside the scope of a real estate license by offering legal advice

Deceptive Trade Practices Act, which can be found in Texas Business and Commerce Code §17.01, et seq.

What is DTPA and where can it be found?

Texas Real Estate Commission (TREC)

TREC is the acronym for the _______

Public

The Texas Real Estate Commission establishes rules in the best interests of the ___________.

Never

Under what circumstances may a Texas licensee offer legal advice to a client?

Administers TRELA, establish policy and rules to enforce, interpret, and explain the provisions of TRELA. TREC also creates and implements what are known as promulgated forms drafted by the Broker-Lawyer committee.

What are TREC's duties?

Any false, misleading, or deceptive actions or practices in the advertising, offering for sale, selling, or leasing personal property or real property are prohibited.

What is DTPA?

Texas Real Estate Licensing Act, which can be found in Texas Occupational Code §1101.001, et seq.

What is TRELA and where can it be found?

Protect the public through regulation of licensed real estate brokerage practitioners, real estate inspectors, residential service companies, and entities offering timeshare services

What is TRELAs purpose?

Texas Listing Law Rule

What is Texas Occupational Code §1101.155. et seq.

Draft legally promulgated forms for TREC

What is a basic duty of the Broker-Lawyer Committee? - File charges against violators of TRELA. - Draft legally promulgated forms for TREC. - Draft new laws under TRELA.

An approved form is optional; a promulgated form is required.

What is the difference, if any, between a TREC-approved form and a TREC-promulgated form?

Acting outside the scope of one's license; offering legal advice or drafting legal forms

What is the unauthorized practice of law in Texas?

13 Members - 6 Lawyers appointed by the president of the Texas Bar Association - 6 Brokers appointed by TREC - 1 Member of the public, appointed by the governor

Who are the members of the Texas Real Estate Broker-Lawyer Committee?

The client

A Texas licensee may only strike through a clause or line item if it is not applicable to the transaction and the deletion is at the request of ______.

nine (six brokers, with at least five years of real estate experience, and three members of the public)

How many members are in TREC?

Contract forms law

Licensees must use forms promulgated by the Texas Real Estate Broker-Lawyer Committed and adopted by TREC except when by the property owner or by an attorney and required by the property owner

"Your license is in jeopardy."

Maury is a service-oriented licensee in Texas. He always previews homes before showing, and he took a law course so he could help his clients decide what would be the best way for them to take title, and how to interpret legal clauses. If you were Maury's broker, what would you tell him?

Texas Real Estate Commission

Which authority is responsible for providing promulgated contract forms and enforcing license law in Texas?

Licensees must use promulgated forms, but approved, non-promulgated forms are optional.

Which of the following is a true statement about TREC-approved and promulgated forms? - Approved forms must be used, whereas promulgated forms may be used. - Licensees must use only those forms approved or promulgated by TREC. - Licensees must use promulgated forms, but approved, non-promulgated forms are optional. - Promulgated forms are those required by state or federal law.