RE State Exam 9

TREC has a great deal of authority. In addition to enforcing the provisions of TRELA, TREC also has the authority to ______.

Bring legal action and file criminal charges against a person who violated TRELA

A broker lists a property. A potential buyer tells the broker that he has heard that the crime rate in the neighborhood is increasing. Which of the following is the broker's BEST response to the buyer?

Check with local law enforcement authorities about the crime rate.

The Canons of Professional Ethics and Conduct are divided into five sections: fidelity, integrity, competency, consumer information, and ______.

Discriminatory practices

For how many years following an incident does TREC allow a person to file a complaint against a license holder?

Four years

If a person makes a false representation regarding a material fact, they're committing __________.

Fraud

Which of the following is a true statement about civil litigation in Texas fair housing complaint cases?

If a TWCCRD conciliation agreement is entered into or a hearing commences before an administrative law judge, the private lawsuit must be terminated.

When does timing for certain contract requirements begin?

On the first full day after the executed date (effective)

Sheila, a buyer, didn't receive seller's disclosure notices until she went in to sign her closing paperwork. If Sheila terminates now, ______.

She will receive her earnest money back

To become a Texas sales agent, how many 30-hour pre-licensing courses must Brock take?

Six 30-hour courses

Carole and Frank Bellacera are purchasing a two-story house with five bedrooms for $350,000. To whom should they write out their earnest money check of $10,000?

To the All American Escrow Company

According to TREC's Consumer Protection Notice, how many recovery funds does TREC administer?

Two

The Loan Assumption Addendum requires some information about the seller's mortgage, including the name of the lender, interest rate, and any loan assumption fee, monthly payment, and ______.

Unpaid principal balance of the loan

There are a few exceptions to the Texas rule that requires a seller to complete a property condition disclosure. Which of the following is an example of such an exception?

When the property is new construction.

The provision in a mortgage or deed of trust that gives the lender the rights to call the entire balance due upon a default in any payment is called a(n):

acceleration clause

The value placed on land and buildings by a governmental unit for use in levying annual real estate taxes is called the:

assessed value

A lender's title policy will protect the:

lender against existing, undiscovered title defects

Which of the following can hold a broker's license in Texas?

A person or an entity

A lot was purchased as an investment for $10,500 and sold a year later at a loss of 20%. If the owner paid a 10% commission, what was the owner's net loss on the sale?

$10,500 * 20% + $10,500 * 80% * 10% = $2,940

If a buyer makes a 20% down payment and obtains a $75,000 mortgage, what is the sales price of the property?

$75,000 / (1 - 20%) = $93,750

What's the maximum urban homestead size in Texas?

10 acres

The property that Anna is selling is subject to mandatory membership in an owner's association. Which TREC addendum is she required to include as part of the sales contract?

Addendum for Property Subject to Mandatory Membership in a Property Owners' Association

Which of the following is NOT considered an advertisement in Texas?

An email from broker Samantha to her clients, the Weidmans, with whom she signed an exclusive listing agreement a month ago

Toni is representing the buyer only as his agent in a sales transaction in Texas. Which of the following representation options will she check as part of the Broker Information section in TREC's One to Four Family Residential Contract (Resale) ?

Buyer only as buyer's agent

Which of the following statements about the law of agency is CORRECT?

It establishes a fiduciary relationship.

Which of the following is a true statement about the Texas seller's disclosure of property condition law?

It requires sellers of single-family residential properties to disclose material facts to buyers.

After proper notice, Texas landlord Liam changed his tenant's locks in attempt to collect rent. What type of breach of lease remedy is Liam using?

Lockout

In order for a property manager to determine net operating income on a property, which of the following fees is subtracted from the effective gross income?

Operating expenses

Texas licensee James is working with his clients, the Murphys, who are purchasing a new home. After he has explained to them the ins and outs of the sales contract, they still have additional questions and ask if they should consult with an attorney. What else should James do at this point?

Recommend they seek legal counsel on their own.

Which paragraph of the TREC One To Four Family Residential Contract (Resale) is used when a buyer wants the exclusive right to purchase the property with the unrestrictive right to terminate the contract?

The Termination Option paragraph

Is a license holder required to disclose information surrounding a death at a property if that death were a result of a defect on the property?

Yes. If a death occurred because of a defect on the property, a licensee must disclose this information when listing or selling that property.