State Portion

Bart's listing agreement with his seller client prohibits the seller from listing the property with another brokerage prior to the expiration of the listing contract. What type of listing agreement do Bart and his client have?

Exclusive right to sell

Any service of process served upon TREC for a non-resident broker must be made with duplicate copies. One copy must be filed in the TREC office, and the other must be ______.

Forwarded by registered mail to the non-resident broker against whom the process is directed

Which of the following statements about escheat in Texas is true?

In Texas, the state has the right to use the power of escheat.

Jonathan is acting as an intermediary in Texas. He has received written consent from the parties involved in the transaction. What additional requirement does Jonathan need to meet?

Information detailing the broker's compensation and the source of that compensation

In Texas, the Information About Brokerage Services form ______.

Is required by law

Which of the following forms is the listing agent required by law to have sellers of properties built prior to 1978 fill out and sign?

Lead-based paint addendum

When a buyer takes over the seller's mortgage loan, which of the following addenda must be checked on the TREC One to Four Family Residential Sales Contract (Resale) to indicate this?

Loan Assumption Addendum

Your buyer client, Miranda, has two young daughters, and is concerned that there could be sex offenders in the neighborhood of a house she'd like to buy. By law, you:

May either divulge this information to her, if you know it, or recommend that she do her own research on the sex offender registry—depending on your brokerage's policy for handling such questions

Do operating expenses include mortgage payments/debt reduction, depreciation, and capital improvements/expenditures?

NO

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

Never

Brad, a Texas license holder, is acting on behalf of his brother, Ben, who's selling his home. Is Brad required to provide a written broker or sales agent disclosure notice to the other party in the transaction that he's acting on his brother's behalf?

No, because the broker or sales agent disclosure is not required when acting on behalf of siblings.

Can a license holder be held liable if they are unaware that a party to a real estate transaction is concealing information pertaining to that same real estate transaction?

No, the license holder was not aware of the dishonesty and is not liable.

What paragraph of the TREC One to Four Family Residential Contract (Resale) contains the promise to sell and the promise to purchase, known as the consideration, of the contract?

Parties The promises in the first paragraph, Parties, are known as the consideration of the contract. This paragraph also—as its name states—includes the names of the parties to the contract.

Finley's tenancy comes with an automatic renewal clause. Which of the following type of tenancy does he have?

Periodic estate

Identify the ways in which the homestead law protects Texas residents.

Protects against foreclosure by general creditors

Jamie is a Texas licensee and is not an attorney. Which of the following would be considered engaging in the unauthorized practice of law?

Providing legal advice to her client

Buyers of newly-constructed homes must follow the procedures established in Chapter 27 of the Texas Property Code so they can do what?

Recover damages for construction defects

Texas licensee Daniel is showing a home to his buyer client, Kathy. As they enter the kitchen, she notices some yellow spots on the ceiling. She asks if Daniel thinks that means the house needs a new roof. What should Daniel do?

Suggest contacting a roofing expert to make this determination.

Which entity was formed for the purpose of enforcing the Real Estate Dealers Act in Texas?

TREC

Which one of the following statements about the Texas Information About Brokerage Services form is true?

The Information About Brokerage Services form is not a contract.

Which of the following statements about the closing date in the TREC One to Four Family Residential Contract (Resale) is true?

The buyer selects the settlement date.

Who has the ultimate responsibility for the sales agent's actions in Texas?

The sales agent, and the sales agent's broker

Andy is in a contract for deed arrangement in Texas and has been paying the seller for over a year. Unfortunately, Andy lost his job several months ago and can no longer make the payments. What will happen with the contract for deed arrangement now that Andy can no longer meet his financial obligations to the seller?

The seller can keep all of the proceeds received up until that point, and repossess the property.

Vanessa just received two offers for a Texas listing. One is $15,000 below the asking price, and one is for the asking price. Vanessa's client, Nevaeh, has asked her in writing to not present offers that are more than $10,000 below the asking price. What should Vanessa do?

Vanessa should submit only the offer that meets Nevaeh's request.

Which veteran loan program offers qualified veterans help with the purchase of land in Texas?

Veterans Land Program

Civil Rights Act

1866: prohibits discrimination based on race or color.

Federal Fair Housing Act

1968 AKA Title VIII of the Civil Rights Act of 1968 Forbids discrimination on the basis of race, color, national origin and religion.

When was the Americans with Disabilities Act passed

1990

Buyer Representation Agreement

An employment contract obligating a broker to act as a buyer's agent. Specific service provided to the buyer should be spelled out. Compensation should be addressed, it must have a starting and termination date.

Which of the following statements correctly identifies what the seller must include in the disclosure notice per Texas law?

Any actual knowledge of latent defects

When crops are excluded from the sale of a farm or ranch, by when must they be removed from the property?

Before closing

When a Texas broker applies for inactive status, he must terminate his association with each sponsored sales agent by giving notice when?

Before the 30th day prior to the date the broker applies for inactive status

If a broker finds themselves in a situation where acting as an intermediary is necessary, the broker must obtain written consent from whom?

Both parties, regardless of the situation

First Baptist Church in Houston owns two apartments next door to the church, which used to be housing for its ministerial staff. It does not rent to non-Baptists. Is this legal in Texas?

Yes, as long as it does not discriminate based on race, color, or national origin.

Blockbusting

causing panic selling to homeowners. aka panic peddling prohibited by law

steering

directing buyers into or away from certain areas because of their race, color etc. AKA channeling