STATE PRACTICE EXAM (9)

What is the purpose of TREC's Consumer Protection Notice?

Tells consumers how to submit a complaint against a license holder $ The Consumer Protection Notice tells consumers how they can submit a complaint to TREC against a license holder. It also alerts consumers that two recovery funds are available to satisfy a civil court judgment against a license holder.

Frank is a buyer who wants an option to purchase but doesn't want to pay the seller an option fee. He puts "0" for the option fee amount in Paragraph 23 Termination Option in the TREC residential resale contract. What does this mean?

The termination option won't be a part of the sales contract. $ Without a fee, the termination option won't be a part of the sales contract, and Frank won't have the unrestricted right to terminate the contract.

Which new Texas licensee is exempt from liability under the 2011 amendment to the DTPA?

Justin who accidently advised his client incorrectly $ Justin unintentionally gave poor advice with no intent to deceive or commit fraud, therefore, he is exempt from liability. The 2011 amendment to the DTPA helps prevent frivolous lawsuits against licensees by exempting them from liability for innocent omissions, providing advice, guidance, or opinion unless they intended to deceive or commit fraud.

Which of the following entities promulgates forms for Texas licensees?

TREC $ TREC promulgates the forms drafted by the Broker-Lawyer Committee.

A default judgment in an action commenced against non-resident broker Phil may not be granted until ______

The 21st day after the date the pleading was mailed to the defendant $ A default judgment in an action commenced against a non-resident broker in Texas may not be granted unless TREC certifies that a copy of the pleading was mailed to the defendant, and until the 21st day after the date the pleading was mailed to the defendant.

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 ______.

The client $ A licensee may only strike through an item on a promulgated form at the client's request, and when it's in the best interest of the client.

James is a seller who is required by Texas Property Code to provide seller disclosures to prospective buyers. James could be ________.

The owner of a 1950s townhome $ Most sellers are required to provide this notice. A trustee of an estate, a lender after foreclosing, and a builder of a new home are some of the few exceptions to this property code requirement.

A listing agent must include provisions informing parties of the availability of natural hazards information applicable to residents near _____ in Texas.

Coastal areas $ A provision must be included in the listing agreement, applicable in coastal areas, explaining the availability of Texas natural hazards information to all coastal residents.

This written notice must be provided by the seller of unimproved real property that is to be used for residential purposes to the purchaser of the property, on or before the effective date of a sales contract for the property.

Conditions Under Surface $ The Conditions Under Surface notice must disclose the location of any transportation pipeline under the ground's surface.