TX Legal Update I (2024-2025) Quizzes

The One to Four Family Residential Contract (Resale) includes a line for the contact information of the ______ to provide them with copies of any notices the parties are given.

Buyer's and/or seller's agent

If the Texas Real Estate Commission receives numerous complaints about license holders mishandling earnest money and decides that license holders may need a refresher on handling trust funds, to which of its four advisory committees is it most likely to refer the issue?

Education Standards Advisory Committee

Which TREC advisory committee makes recommendations to the Commission regarding curriculum standards, course content, and instructor qualifications?

Education Standards Advisory Committee

What is the term for the Federal Home Owners' Loan Corporation's practice of color-coding maps to indicate risk levels for lenders?

Redlining

TREC's Addendum for Reservation of Oil, Gas, and Other Minerals underwent a significant update in 2023, which ______ the previous language regarding sellers' right to the mineral estate.

Reversed

Which of the following scenarios depicts discrimination based on ancestry?

Sales agent Aaron refused to rent an apartment unit to Nick Siriani because Nick's surname was Italian.

Which of these activities fails to align with the legal description of an assistance animal under the Fair Housing Act?

Serves as a cherished pet for the family of a person with a disability

Sales agent Felix is concerned that his buyers won't feel comfortable in a particular neighborhood, so he excludes houses in that area when showing them property. What is this an example of?

Steering

Under the FHA a person with a disability is defined as an individual who has a physical or mental condition that ______.

Substantially limits one or more major life activity

What type of lease is addressed after a 2023 update to TREC's Farm and Ranch Contract?

Surface

If TREC finds that a sales agent discriminated against a potential buyer based on the buyer's protected class, what is the Commission empowered to do?

Suspend or revoke the sales agent's license.

What is the name of the TREC advisory committee that drafts and revises TREC's promulgated contract forms?

Texas Real Estate Broker-Lawyer Committee

What is the name of the rule TREC's Broker-Lawyer Committee employs when determining if an issue is significant enough to warrant a form update or a new form?

The 5% Rule

Which person or entity has the power to change the number of hours required to become a broker in Texas?

The Texas Real Estate Commission

What is the most important reason a license holder should understand discrimination and fair housing history, laws and trends?

To uphold fiduciary responsibility and duties owed to clients, customers, and the public

Texas broker Julie's license has been expired for one year. As long as she applies before the license has been inactive for ______ years, she can apply for reinstatement of the license.

Two

Maury is a sales agent in Texas. Over the weekend, he received a phone call from one of his clients asking Maury a question. According to TREC rules, within what time frame must Maury respond to his client?

Two days

What is "appraisal bias"?

Undervaluing homes in marginalized communities and neighborhoods

Which of the following would be considered a reasonable accommodation of an apartment building's policy?

Waiving a no pet policy so a veteran may have their assistance animal live with them

Texas sales agent Simone accidentally used an outdated version of the One to Four Family Residential Contract (Resale) in her transaction, and as a result, her transaction fell through, and her client is suing her. Did Simone commit a violation?

Yes; all license holders must use the most current version of TREC forms.

Texas sales agent D'andre forgot to renew his license on time, so his license is currently on inactive status. What's the minimum fine TREC can levy against D'andre if he engages in brokerage activity before he reactivates his license?

$1,000

What is the claim limit for payment from TREC's Real Estate Recovery Trust Account?

$125,000

As part of its consumer protection efforts, the Texas Real Estate Commission may create and appoint members to ______ to examine different areas of the real estate industry and report back with recommendations for new rules or rule updates.

Advisory committees

Refusing to allow reasonable modifications to a person with a disability's residence is _____.

Against the law

Which of the following is NOT a protected class according to the Fair Housing Act?

Age

What is the TREC Broker-Lawyer Committee's goal when drafting forms?

Aiding license holders in navigating transactions without crossing over into legal practice

Which of the following is an example of a property that's exempt from fair housing requirements?

An owner-occupied four-unit building

TREC's Broker-Lawyer Committee identified the need to update several forms due to a major law going into effect in Texas. When will this update most likely be released?

As soon as possible, since license holders are required to abide by all Texas laws

As of 2023, TREC's Farm and Ranch Contract explicitly states that it is not for use in ______ transactions.

Complex

What does a 2023 update to TREC's Seller Financing Addendum encourage the parties to do?

Consult with an attorney and a financial professional.

Texas seller June agreed to perform some repairs the buyer requested. According to the One to Four Family Residential Contract (Resale), what must June provide to the buyer regarding the repairs?

Documentation of the scope of work and payment for the work completed

What is the purpose of the Broker-Lawyer Committee?

Draft new and revise existing contract forms for use by license holders.

According to Texas fair housing law, "protective hairstyle" refers to all of the following EXCEPT ______.

Durags and wraps

A 2023 update to the One to Four Family Residential Contract (Resale) newly defined and capitalized which term?

Escrow Agent

The Civil Rights Act of 1968 is also known as the ______.

Fair Housing Act

What two classes are the most recent protected classes to be added to federal fair housing protections?

Familial status and disability

A 2023 update to several TREC forms requires sellers to disclose whether the property is located in a ______.

Floodplain

This occurs automatically as the brain makes judgments based on past experiences, education, and background:

Implicit bias

Which of the following is a best practice for license holders as it relates to fair housing?

Informing a client of all housing available that satisfy their criteria

SB 1577 exempts a business entity from licensure if it is an LLC or S corporation that ______.

Is established for the sole purpose of receiving commissions earned by a license holder

The "Required Notices" section in Paragraph 6 of the One to Four Family Residential Contract (Resale) was revised to create a place to ______.

List a PID or MUD notice

Nelson manages a building with a strict "no pets" policy. Shanna, who is disabled and uses an assistance animal, wants to rent a unit in the building. What action can Nelson legally take?

Nelson can allow Shanna to rent the unit but can't charge a pet deposit or any extra fees.

TREC rule 535.157

Obligation to Respond Timely requires brokers and sales agents to respond to their client, a broker or sales agent representing another party to a real estate transaction, or an unrepresented party to a real estate transaction within how many days? [Two calendar days

The Texas Real Estate Inspector Committee makes recommendations to TREC regarding all of the following aspects of inspectors in Texas EXCEPT ______.

Payment

Paragraph 7F (Completion of Repairs and Treatments) of the One to Four Family Residential Contract (Resale) was revised to require the seller to:

Provide the buyer with documentation from the entity contracted to complete the repairs that includes the scope of work performed and the payment received

When there is a proposed change to a TREC promulgated contract form, TREC issues a ______ version of the form to show the changes.

Redlined

According to TREC rule 535.2(i)(5), a broker must provide coaching and training to a sponsored sales agent:

The first three times they engage in a new type of brokerage activity

According to the One to Four Family Residential Contract (Resale), who pays for any private transfer fees?

The seller

Which of the following statements is true regarding the redlined versions of TREC contract forms?

They are excellent learning tools for license holders because they highlight the changes to the forms.

Sales agent Fatima has worked in residential sales for three years but wants to start working with tenants to find rentals. TREC rules require Fatima's designated broker, Anna, to coach Fatima's first ______ rental transaction(s).

Three

The Grace Baptist Church owns a three-bedroom home that it wants to rent out. It would like to retain some of its original mission without violating fair housing regulations. Which of the following advertisements could it legally post?

Three-bedroom home available for rent