Unit 2: Laws, Rules, and Regulations TEST
In order to practice law in Texas, a person must be a member of the __________. State Bar Texas Real Estate Commission Broker-Lawyer Committee government
State Bar
The Broker-Lawyer Committee was established by: TRELA. TREC. the State Bar. the Governor.
TRELA.
Which of the following statements regarding an offer is true? An offer shows the contractual intent of the offeree. An offer must be communicated to the offeror. Unconditional acceptance of the offer is necessary for all parties to be legally bound. The offer must be vague and uncertain in its terms.
Unconditional acceptance of the offer is necessary for all parties to be legally bound.
When do contract forms become mandatory? When the Texas Real Estate Commission adopts them When the Texas Real Estate Broker-Lawyer Committee drafts them When the Texas Real Estate Broker-Lawyer Committee recommends their adoption When real estate licensees begin using them voluntarily
When the Texas Real Estate Commission adopts them
The term "delivery" means the personal receipt by the: buyer. seller. party's authorized agent. all of the choices apply.
all of the choices apply.
Real estate licensees who are not licensed attorneys yet engage in the practice of law may: have their real estate licenses suspended or revoked. be admitted to the State Bar. be jailed. be arrested.
have their real estate licenses suspended or revoked.
If a promulgated contract form has been updated or revised, licensees: must use the current TREC-promulgated form. may continue to use their stockpile of outdated forms. may create their own contract forms. should handwrite the revisions onto any outdated forms.
must use the current TREC-promulgated form.
The licensee should make sure that the _______________ understand(s) the nature of the contract. parties to the transaction Broker-Lawyer Committee Texas Real Estate Commission broker
parties to the transaction
Only a(n) __________ can amend or change a contract. principal broker agent licensee
principal
A licensee must use a(n) _______________ when negotiating contracts that bind the sale, exchange, option, lease, or rental of any interest in real property. promulgated contract form handwritten contract original contract optional contract form
promulgated contract form
In Texas, real estate licensees use contract forms drafted by: the Texas Real Estate Broker-Lawyer Committee. TRELA. the Unauthorized Practice of Law Committee. the Texas Occupations Board.
the Texas Real Estate Broker-Lawyer Committee.
A member of the Broker-Lawyer Committee holds office until: the member's successor is appointed. death. the end of his or her term, even if a successor has not been chosen. retirement.
the member's successor is appointed.
Which of the following is true regarding method of acceptance? When the method of acceptance is specified by the offeror, other methods may be sufficient. When an offer requires a specific mode of acceptance, any reasonable and usual method is acceptable. A phone call stating, "'m coming to your office to accept the offer" is an oral acceptance. All of the choices apply.
A phone call stating, "'m coming to your office to accept the offer" is an oral acceptance.
Which of the following is the purpose of The Real Estate License Act? Protect consumers from loss because of dishonest and incompetent agents Set minimum standards and qualifications for licensing a real estate broker or sales agent Monitor the conduct of real estate brokers and sales agents All of the choices apply
All of the choices apply
Once an offer has been communicated to the offeree, it does not stay open forever. Which is not a way to terminate an offer? Destruction of the subject matter Capacity of either party Rejection by the offeree Revocation by the offeror
Capacity of either party
Regarding real estate licensees, which of the following actions is not considered an unauthorized practice of law? Encouraging clients to seek legal counsel when necessary Giving or attempting to give legal advice Giving opinions as to the legal effect of any instruments that may affect title to real property Discouraging any principal from employing a lawyer
Encouraging clients to seek legal counsel when necessary
Paul sends Gary a letter that states, " offer to purchase your house for $290,000, closing to take place by December 31." Gary writes back, " accept your offer, but escrow must close before November 30." Which of the following is true? Gary's letter is a counteroffer creating a binding contract. Gary's letter is an acceptance creating a binding contract. Gary's letter is a revocation that Paul can accept or reject. Gary's letter is a counteroffer that Paul can accept or reject.
Gary's letter is a counteroffer that Paul can accept or reject.
Which of the following is not one of the elements that must be satisfied for final acceptance to take place? The final contract must be in writing. Both buyer and seller must sign the final contract. Acceptance must be unequivocal. The first party to accept must communicate acceptance back to the other party.
The first party to accept must communicate acceptance back to the other party.
The Broker-Lawyer Committee is: an advisory body that develops and recommends various contract forms to TREC for use by licensees. a regulatory agency that oversees real estate licensees and inspectors. an enforcement bureau that disciplines licensees who break the law. a group of attorneys that files class action lawsuits against licensees.
an advisory body that develops and recommends various contract forms to TREC for use by licensees.
When filling out promulgated contract forms, licensees may do all of the following, except: arbitrarily add items to or delete items from the form. fill in the blanks provided. add factual statements desired by principals. delete items requested by principals.
arbitrarily add items to or delete items from the form.
Licensees who use the wrong contract form or incorrectly complete a contract form may be subject to: disciplinary action. license renewal. awards and prizes. jail time.
disciplinary action.