RE Texas State Portion

Who can appraise any type of property regardless of transaction value or complexity? A. Certified general appraiser B. Appraisal trainee C. Certified residential appraiser D. State licensed appraiser

A. Certified general appraiser. The highest level of appraiser is the Certified General Real Estate Appraiser.

The Real Estate License Act requires that a fixed office space be maintained by: A. Every real estate broker B. Only corporations engaged in the business of real estate C. Every salesperson D. Each principal involved in a real estate transaction

A. Every real estate broker. This is stated in the Texas Real Estate License Act.

An applicant for a broker or salesperson has __________ to satisfy the requirements after they file the application. A. 6 months B. 1 year C. 90 days D. 6 weeks

B. 1 year. A person may apply to take the real estate test after they complete the education requirements. The applicant applies to the Texas Real Estate Commission. The applicant has one year in which to take the state test after the application is approved by TREC.

Intermediary brokerage laws were amended to prevail over common law in what year? A. 2015 B. 2005 C. 1995 D. 1920

B. 2005. The amending of these brokerage laws made dual agency illegal.

Which of the following is required to have a Texas real estate license to sell a property in Texas? A. A builder B. A person licensed as a salesperson in another state C. An attorney-in-fact D. An owner selling his own property

B. A person licensed as a salesperson in another state. For example, A salesperson from Oklahoma would have to have a Texas real estate license to practice real estate in the state of Texas. Remember also that Texas has no reciprocity with any other state for licensing requirements.

Who does not need a real estate license? A. A person who offers to lease real estate for compensation B. A person who offers to sell her own property C. A person who offers to exchange real estate for compensation D. An apartment finder for compensation

B. A person who offers to sell her own property. An owner is not required to have a real estate license to sell his/her own home.

At a minimum, an agent must: A. Tell his client any material information related to the transaction B. Answer the client's questions C. Present any offer to or from the client D. All the above

D. All of the above. Minimum services are required by the Texas Real Estate License Act.

The maximum payment from the Real Estate Recovery Trust Account for one transaction is ___________ and the maximum payment for any one license holder is ___________. A. $50,000 / $100,000 B. $100,000 / $50,000 C. $50,000 / $50,000 D. $100,000 / $100,000

A. $50,000 / $100,000. $50,000 is the maximum amount paid for any one transaction no matter how many agents are involved.

Mary has applied to take the real estate salesperson's test. She has ______________ in which to take and pass the test. A. 1 year from the date of application B. 6 months from the date of application C. 1 year from the date of her first class D. 6 months from the date of her first class

A. 1 year from the date of application. Mary must satisfy the examination requirements within one year from the date the application is filed.

A social media website that is accessible to the public, has content controlled by the license holder, and has information about the license holder's real estate business is: A. A business website B. A personal website C. Not allowed to be used by an agent D. Always on MLS

A. A business website. The above is a definition of a business website. Keep in mind that a sales agent may advertise a rebate, but the ad must disclose that payment of the rebate is subject of the consent of the seller and if the rebate is contingent upon certain restrictions, such as the use of a particular service provider. A sales agent must also have their sponsoring broker's authorization to offer a rebate.

When a property is sold, the buyer's broker usually receives a commission. This commission is often: A. A percentage of the sales price B. A percentage of the listing price C. A flat fee set by the title company D. A commission set by the title company

A. A percentage of the sales price. The buyer's broker usually receives a commission. This commission is often a percentage of the sales price. The listing broker splits the commission, which was set in the listing agreement, with the buyer's broker.

Jane is a very successful salesperson. She needs to hire a full-time employee to help her. The person she hires will do record keeping, put up signs, and prepare documents for closing. The person she hires will most likely be: A. An unlicensed personal assistant B. A licensed broker C. Someone from a temp agency D. Another successful salesperson

A. An unlicensed personal assistant. An unlicensed personal assistant does not have a Texas Real Estate License and cannot do anything that requires a real estate license. They can perform tasks such as record keeping, signage, and document preparation.

In an intermediary situation, if the broker appoints one of his salespersons to work with the seller, he must: A. Appoint a salesperson to work with the buyer B. Appoint himself to work with the buyer C. Appointments are not made in intermediary. D. Appointments are only made to the seller.

A. Appoint a salesperson to work with the buyer. In an intermediary situation, if an appointment is made to the seller, an appointment must also be made to the buyer. The broker is the intermediary and cannot be appointed.

According to The Real Estate License Act of Texas, which one of the following actions is a fair and impartial act for an intermediary? A. Appointing associated licensees to work with the parties B. Appointing subagents to work with the parties C. Agreeing to represent only the owner D. Agreeing to represent only the buyer

A. Appointing associated licensees to work with the parties. The intermediary (sponsoring broker) may appoint associated licensees (agents sponsored by the broker) to work with each party (the buyer and seller) to the transaction.

One who is given a power-of-attorney that allows them to sign the name of a principal to a contract of sale is a(n): A. Attorney-in-fact B. Broker with a listing C. Special agent D. Attorney at law

A. Attorney-in-fact. An attorney-in-fact has the authority to sign for the principal.

A contract in which all the parties make promises and are bound to act is: A. Bilateral B. Not acceptable C. Unilateral D. An option agreement

A. Bilateral. A bilateral contract is a promise for a promise. The TREC residential contract is a bilateral contract.

A license holder has taken a listing on a property and is using a lottery to sell the property. This is: A. Grounds for suspension or revocation of license B. Lawful if they obey the Texas State Lottery Law C. Allowed because the seller request this type of sale D. Only allowed if the seller agrees to the lottery paragraph in the listing agreement

A. Grounds for suspension or revocation of license. TRELA does not allow a license holder to offer a property for sale by lottery. A lottery/raffle sale of a home is illegal nationwide, except under narrowly defined circumstances, such as a non-profit.

An unlicensed assistant may perform all of the following duties EXCEPT: A. Host an open house for the listed property B. Set appointments to show a listing C. Place a "For Sale" sign on a property D. Accompany an inspector to a listed property

A. Host an open house for the listed property. The Real Estate License Act establishes that it is a crime for an unlicensed person to engage in activity for which a real estate license is required. B,C, and D are considered "administrative" tasks and do not require a real estate license and are permissible under TREC rules. It has been determined that hosting an open house is a real estate activity and a person must be licensed to hold a listed property open.

A broker may refuse to work with a customer because of the customers: A. Income B. Race C. Religion D. Familial status

A. Income. If the buyer cannot qualify for a mortgage or does not have sufficient income to pay cash for a property, the licensee is not obligated to work with them. No other reason is justified or legal.

Standard forms of TREC: A. Must be used by real estate license holders in all transactions to which forms are applicable B. May only be used if they are filled out by an attorney C. Have suggested language that a broker or salesman may wish to include when writing a sales contract D. Must be used by all brokers and attorneys handling real estate transactions

A. Must be used by real estate licensees in all transactions to which forms are applicable. The Texas Real Estate Commission (TREC) may not prohibit a licensee from using forms prepared by the property owner or prepared by an attorney and required by the property owner. TREC forms are written by the Texas Real Estate Broker-Lawyer Committee.

Broker Bob and Broker Jim both claim to be entitled to the commission from the sale of a property located in Texas. They have asked TREC to decide who is entitled to the commission. Will TREC make the decision? A. No, TREC does not become involved in commission disputes between licensees. B. Yes, TREC will hear the case. C. No, only a salesperson can collect a commission. D. Yes, if the brokers complete the correct forms.

A. No, TREC does not become involved in commission disputes between licensees. TREC will not become involved in commission disputes between brokers. If the brokers are both members of TR, the brokers may take the case to arbitration before the TR board.

Bob has decided to sell his home himself. Is he required to have a real estate license in order to advertise his property for sale? A. No B. Yes C. He may advertise in the newspaper without a real estate license, but he must have a real estate license to advertise on the Internet. D. He may not place a sign in his yard unless he has a real estate license

A. No. Bob may advertise and sell his own property without having a real estate license, and he is not required a hire a licensed broker.

Who can a broker pay a commission to? A. An out-of-state broker B. An unlicensed individual who refers a buyer to the broker C. A relative who at one time held a real estate license D. An attorney in any state

A. Out-of-state broker. A broker cannot pay a commission to anyone else.

Joe has applied for a real estate salesperson license but has refused to be fingerprinted. TREC will: A. Refuse to issue the license B. Issue a license for 6 months C. A salesperson does not need to be fingerprinted. D. Only a broker must be fingerprinted.

A. Refuse to issue the license. Being fingerprinted is one of the requirements for licensure.

The purpose of the Real Estate Recovery Trust Account is to: A. Reimburse the public for losses caused by a licensee B. Reimburse the agent for losses caused by the public C. Reimburse the broker for losses caused by a salesperson D. Reimburse TREC for nonpayment of dues by a broker

A. Reimburse the public for losses caused by a licensee. The fund will not pay a broker or salesperson. The fund is to reimburse the public. The member of the public requesting payment from the fund must have suffered actual damages by the broker or the salesperson.

TRELA states a broker may act as an intermediary between parties to a real estate transaction if: A. The broker obtains written consent from each party for the broker to act as an intermediary in the transaction. B. The written consent of the parties states the source of the expected compensation to the broker. C. Neither A or B D. Both A and B

A. The broker obtains written consent from each party for the broker to act as an intermediary in the transaction. The broker must obtain the consent of both parties to act as an intermediary.

Senate Bill 489 was passed in 1996 and dealt with what issue? A. The elimination of statutory dual agency and replacing it with intermediary brokerage B. The rules pertaining to eviction of tenants C. The formation of a financial taskforce to study FHA loans D. The elimination of the Sunset Commission

A. The elimination of statutory dual agency and replaced it with intermediary brokerage. That was the purpose of the 1996 Senate Bill 489.

TRELA establishes that it is crime for an unlicensed person: A. To engage in activity for which a real estate license is required B. To put up signs for an open house C. To do bookings for a broker D. To have an unlicensed assistance's license

A. To engage in activity for which a real estate license is required. It is illegal for someone to put themselves out as a real estate agent or broker without first obtaining a real estate license.

What is the purpose of the Texas Real Estate Commission? A. To protect the public from dishonest and incompetent real estate agents B. To control the Texas Realtors® C. To refer agents to the public D. To control the price of properties in Texas

A. To protect the public from dishonest and incompetent real estate agents. TREC does not refer agents to the public, but they do protect the public from the agents.

If TREC revokes the license of a salesman, to whom would the salesperson appeal? A. The local board B. The district court C. The governor D. The senator for his district

B. The district court. When a licensee is found guilty in a hearing held by TREC, the licensee may appeal the decision in the district court in the county in which the hearing was held.

Which of the following is the responsibility of the sponsoring broker? A. To update the salespeople of current legal and market issues B. To update the salesperson on current neighborhood builders C. To update the salespeople on number of homes sold in the state D. To update the salespeople's license for them

A. To update the salespeople of current legal and market issues. The broker must make sure the salesperson has current information on any changes in the law as it pertains to real estate.

The commission may suspend or revoke the license of a broker or salesperson who guarantees that future profits will result from a resale of real property. A. True B. False

A. True. A licensee may not promise or guarantee profits from the resale of a property.

A buyer makes an offer to purchase a property and specifies that the owner accept or reject the offer within 48 hours. Before hearing back from the owner, the buyer locates a more attractive property and withdraws the offer. Is the buyer legally entitled to withdraw the offer? A. Yes, either party may withdraw an offer or counteroffer at any time prior to its acceptance. B. No, the offer is binding until the 48-hour time period expires. C. Yes, an offer with a condition to respond in 48 hours in not valid. D. No, the owner must be allowed an opportunity to respond to the offer.

A. Yes, either party may withdraw an offer or counteroffer at any time prior to its acceptance. The buyer is legally entitled to withdraw the offer.

Chapter 531 Canons of Professional Ethics and Conduct includes: A. Fidelity B. Integrity C. Competency D. All of the above

D. All of the above. Fidelity, integrity, and competency are all part of the Canons of Professional Ethics and Conduct.

Which of the following is required to have a Texas Real Estate License in order to conduct a real estate transaction in Texas? A. An attorney licensed in Texas B. A salesperson licensed in Oklahoma C. A public official conducting transactions as his official duties D. The on-site manager of an apartment complex

B. A salesperson licensed in Oklahoma. A salesperson licensed in another state is required to be licensed in Texas and have a sponsoring Texas broker in order to do real estate transactions in Texas.

Which of the following is NOT required to have a real estate license issued in Texas? A. An apartment locator B. An on-site manager of an apartment complex C. A property manager working for 7 owners D. A person collecting rent on 5 houses owned by 5 different owners

B. An on-site manager of an apartment complex. If the apartment manager is just working for one owner, he/she is not required to have a real estate license.

When is an agent required to present a prospective seller with the Information About Brokerage Services (IABS) form? A. When the property is sold B. At the first substantive discussion about a specific property C. When the seller receives the first offer on the property D. At the closing of the sale

B. At the first substantive discussion about a specific property. The Texas Real Estate Licensing Act requires the Information About Brokerage Services be given at the first substantive discussion about a property. The agent should present the form when the seller begins to discuss selling their property.

An agent is on his way to make a presentation to his client, the seller, on an offer he received earlier that day. The agent is involved in a car accident while an unlicensed assistant is also in the car with him. The agent is taken to the hospital while the assistant is unharmed. What should the assistant do? A. Make the presentation himself B. Call the agent's broker so she can make the presentation C. Just go back to the office and let the agent deal with it at a later date D. Discuss the offer with the seller over the phone

B. Call the agent's broker so she can make the presentation. The unlicensed assistant cannot act as an agent and present the offer or discuss it. The appropriate thing to do is to get the broker involved and have the broker present the offer.

A broker represents a seller under a listing agreement. The broker meets the potential buyer of the property. What must the broker do? A. Nothing B. Disclose his agency status to the potential buyer C. Ask the buyer to cancel his buyer representation agreement with the other broker D. Tell the buyer that the property is overpriced

B. Disclose his agency status to the potential buyer. A broker must always disclose who they represent to all parties to the transaction.

The listing broker is required to sell the property and get the highest price for the seller, act in the best interest of the buyer, and to verify the title for the buyer. A. True B. False

B. False. The listing broker acts in the best interest of the seller, not the buyer. Most of the time, the title will be checked by a title company. The listing broker tries to find a ready, willing, and able buyer to purchase the property.

A real estate salesperson may elect to remain inactive for: A. Two years B. For an indefinite amount of time given certain parameters C. Five years D. Ten years

B. For an indefinite amount of time given certain parameters. Inactive salespersons (and brokers) are still required to pay annual renewal fees and meet educational requirements.

Compliance with the Texas Real Estate License Act would require that any advertisement for a specific parcel of real property by a licensee must: A. Contain an Equal Credit Opportunity 'disclaimer' B. Identify the advertiser as a licensed broker or agent C. Mention the Fair Housing Act D. Refer to the Consumer Protection Act in the ad

B. Identify an advertiser as a licensed broker or agent. Any advertisement for a specific parcel of real property by a licensee must provide that identification.

Information on commission structure, advertising, listings, and independent contractor agreements can be found in the: A. Licensing Act B. Office policies and procedures manual C. Company website D. Text from the broker

B. Office policies and procedures manual. Brokers are required by TREC rules to maintain a policy and procedures manual to cover the expectations and operations of the brokerage.

When a broker discharges a salesperson, he should: A. Give the salesperson his license B. Return the license to the Texas Real Estate Commission C. Remove the license from the wall and keep it on file until all of the salesperson's deals have been closed out D. Instruct the salesperson to return his license to the Real Estate Commission

B. Return the license to the Texas Real Estate Commission. The broker is to return the salesperson's license to TREC immediately and notify the salesperson in writing.

If a salesperson is convicted of a felony, what can TREC do? A. TREC can do nothing, as they have no authority with regards to a felony. B. TREC can suspend or revoke the license. C. TREC can send an official reprimand to the broker. D. TREC can arrest the salesperson.

B. TREC can suspend or revoke the license. You are required to notify TREC within 30 days if you have been convicted of a crime even if you are already licensed. Before you apply for a license, you can request a Moral Character Determination to determine whether your moral character meets TREC's qualifications for honesty, trustworthiness, and integrity.

Company ABC has taken a listing on a property. The seller agreed to intermediary in the listing agreement. Company ABC has also signed a Residential Buyer/Tenant Representation Agreement with a buyer. The buyer did not agree to intermediary in the Buyer's Agreement. What does this mean? A. The buyer will be shown all of the properties listed by ABC Company. B. The buyer does not wish to be shown or acquire any of ABC Company's listings. C. The broker has become an intermediary. D. All of the above

B. The buyer does not wish to be shown or acquire any of ABC Company's listings. The buyer will not be shown any properties listed by ABC Company because the buyer did not agree to intermediary. Intermediary would require the broker to represent both the seller and the buyer and would have allowed the buyer to be shown the broker's listings.

When a contract appears to be good and binding but, in fact, one of the parties may legally reject it, the contract is said to be: A. Valid B. Voidable C. Void D. Unenforceable

B. Voidable. When a contract is void, it is not valid. It can never be enforced under state or federal laws. A void contract is null from the moment it was created and neither party is bound by the terms. A voidable contract is binding on one party but not the other. (Unilateral contracts are voidable by the unbound party). A voidable contract is valid and may be enforceable in certain situations only if both parties agree to move forward. One party is bound to the terms of the contract, whereas the other party can oppose the contract for legal reasons if they so choose. Therefore, if the unbound party rejects the contract, it becomes voidable. If fraud, misrepresentation, or duress can be proven, a contract also becomes voidable.

Commingling, as used in the Real Estate License Act, is: A. A meeting of brokers and salesmen B. When a broker places escrow money into the company's operating account C. Placing client's money in a trust account D. When the broker places personal funds into the company's operating account

B. When a broker places escrow money into the company's operating account. Commingling is mixing the client or customer's money with the company's operating account or the agents personal account. Commingling is grounds for suspension or revocation of the agent's real estate license.

According to TREC rules, when MUST you inform a seller about the market value of their home? A. When the offer is presented B. When the listing is taken C. Upon first face-to-face meeting with the seller D. TREC rules don't require you to inform the seller of the market value.

B. When the listing is taken. A licensee is required to tell the seller the value of their property when they take the listing on the property. The licensee will do a Comparative Market Analysis (CMA) and tell the seller the value of the property. A CMA is not an appraisal.

What is the number of hours for a broker to renew his/her license under the CE requirement? A. 30 hours every two years B. 10 hours each year C. 18 hours every two years D. It depends when the broker's license renews.

C. 18 hours every two years. A broker or salesperson is required to complete 18 hours of education (CE) every 2 years. SAE (Sales Agent Apprentice Education) requires an agent to complete 98 hours in the first two years of licensure. After the initial 2-year period, the sales agent will fall into the category of CE with 18 hours every two years.

Real estate brokers in Texas may rebate commissions to only one of the following. Which one is it? A. Escrow officers B. Lenders C. A party to the transaction D. An unlicensed individual who referred the client to you

C. A party to the transaction. A broker may legally rebate a portion of the commission to a principal in a transaction.

The Information About Brokerage Services form gives information about the broker: A. Representing the owner or the buyer B. Acting as a subagent C. Acting as an intermediary D. All of the above

D. All of the above. IABS gives information about all types of agency relationships.

Who would NOT have to have a real estate license to practice real estate in Texas? A. Apartment locators B. Raw land sales person C. An attorney from Texas D. Timeshare salesperson

C. An attorney from Texas. An apartment locator, a person who sells land, and a timeshare salesperson are all required to have a real estate license to practice real estate in Texas. An attorney licensed in Texas may do a real estate transaction without having a real estate license.

One who has the right to sign the name of the principal to a contract of sale is a(n): A. Real estate broker B. Special agent C. Attorney-in-fact D. Real estate salesperson

C. An attorney-in-fact. An attorney-in-fact is given their authority to act on behalf of the principal by the power of attorney document.

The Texas Real Estate Commission is made up of 9 members. The members are: A. Hired by a state employment agency B. Elected by the public C. Appointed by the governor D. Appointed by the president

C. Appointed by the governor. The commissioners are appointed by the governor with the advice and consent of the Senate.

A residential rental locator shall prominently display in a place accessible to clients: A. The locator's license B. A statement that the locator is licensed by the commission C. Both A and B D. A locator does not need to display license.

C. Both A and B. The residential rental locator (apartment locator) must display the locator's license and a statement that the locator is licensed by TREC. The distinction is that the licenses of salespersons do not need to be "displayed" at the broker's office. Only apartment locator's licenses need to be displayed to comply with TREC rules.

Inducing a prospect to purchase property by promising a profit when it is resold is: A. Permitted so long as no deception is intended B. Unethical but not a violation of the law C. Cause for suspension or revocation of licensure D. Appropriate when comparable sales analysis confirms the accuracy of such a claim

C. Cause for suspension or revocation of licensure. The Texas Real Estate Licensing Act (TRELA) forbids a licensee from promising a profit can be made on a property. The licensee could use a history of the neighborhood to show that the value has increased in the past but could not promise a profit for the future.

Use of the TREC promulgated One to Four Family Residential Contract (Resale): A. Is allowed on the sale of a residential condominium B. Can be used for a vacant residential lot C. Covers single family, duplex, triplex and fourplex transactions D. All the above

C. Covers single family, duplex, triplex and fourplex transactions. The TREC One to Four Family Residential Contract (Resale) covers all those types of transactions.

Intermediary is not limited to residential transactions. It is also applied to: A. All listing agreements B. All buyer representation agreements C. Farm and ranch, commercial, and industrial leasing transactions when both parties are represented by the same broker D. All loans

C. Farm and ranch, commercial, and industrial leasing transactions when both parties are represented by the same broker. Intermediary also applies to these transactions as well.

John is a salesperson sponsored by Mr. Jim, the broker for Blue Realty. He wishes to move his license to Green Realty and be sponsored by Ms. Jane. When John terminates his relationship with Blue Realty, how long does Mr. Jim have to return John's license to TREC? A. 30 days B. 90 days C. Immediately D. The license doesn't have to be returned to TREC.

C. Immediately. Chapter 1101 Sec. 1101.367 (a) requires the broker to immediately return the salesperson license to the commission.

Prior to entering a Buyer Representation Agreement, what document must a licensee present to the prospective buyer? A. Seller's Disclosure Notice B. Exclusive Agency listing C. Information About Brokerage Services D. The One-to-Four Family Residential Contract (Resale)

C. Information About Brokerage Services. The Texas Real Estate Licensing Act requires information be given to potential buyers, sellers, tenants, and landlords at the first substantive dialogue about a property. TRELA states, "substantive dialogue means a meeting or written communication that involves a substantive discussion relating to specific real property.

The broker represents both the seller and the broker in the same transaction. The preferred method for representing both parties in the same transaction is: A. Subagency B. Dual agency C. Intermediary D. The broker is not allowed to represent the seller and the buyer in the same transaction.

C. Intermediary. The Texas Real Estate Licensing Act states that if the broker represents both parties in the same transaction, the broker must become an intermediary.

Real estate agents and brokers must follow the client's lawful instructions. What fiduciary duty is this considered to be? A. Loyalty B. Care C. Obedience D. Trust

C. Obedience. Obedience is the fiduciary duty of following a client's instructions.

The Recovery Fund is funded by: A. The state B. Taxpayers C. Real estate licensees D. Clients

C. Real estate licensees. The Real Estate Recovery Trust Account is maintained by TREC to reimburse aggrieved persons who suffer actual damages cause by a license holder. The money in the account comes from licensees. The state, tax payers, or clients do not contribute to the account.

An unlicensed office manager may perform any of the following activities EXCEPT: A. Training B. Handle a dispute between two sales agents C. Review contracts D. Schedule office meetings

C. Review contracts. An unlicensed office manager may be involved in administrative tasks of the office but may not be directly involved in any activity(ies) that would direct agents in their attempts to assist people buy, sell, or lease property.

The listing agent must give Information About Brokerage Services when the agent meets with: A. The agent working with the buyer B. The agent acting as a subagent C. The buyer customer D. The buyer client of another agent

C. The buyer customer. The agent must give Information About Brokerage Services at the first substantive dialogue about real estate.

If the broker uses the Intermediary Relationship Notice, the notice must be given to: A. The buyer and seller and the buyer's other broker B. The lender C. The seller and the buyer D. TREC and TAR

C. The seller and the buyer. The Intermediary Relationship Notice is given to the seller and the buyer when they have agreed to intermediary in the listing agreement and the buyer representation agreement, and intermediary is now going to be put into place.

Who is responsible to TREC, the public, and the clients for the acts of a salesperson? A. TAR B. NAR C. The sponsoring broker D. Only the salesperson

C. The sponsoring broker. The broker is responsible for his own acts as well as all the acts of his sponsored salespersons.

An individual manages several properties for several owners. Is this person required to have a real estate license? A. Only if the properties are within the city limits B. Only if the owners want him/her to market the property for sale C. Yes D. No

C. Yes. A property manager who manages properties for more than one person IS required to have a license. If the manager was managing just the owner's property and no others, he would not have to have a real estate license.

The aggregate amount recoverable from the Real Estate Recovery Fund by all claimants for losses caused by one licensee shall NOT exceed: A. $40,000 B. $60,000 C. $80,000 D. $100,000

D. $100,000. Payments from the recovery account arising out of a single transaction may not exceed $50,000 regardless of the number of claimants. Claims against a single licensee may not exceed a total of $100,000 until the licensee has reimbursed the trust account for all amounts paid.

The broker-lawyer committee consists of: A. 9 members B. 10 members C. 21 members D. 13 members

D. 13 members. The Broker-Lawyer Committee writes the contracts and forms adopted by TREC. The committee consists of 13 members 6 brokers, 6 lawyers, and 1 member of the public.

The broker is responsible for __________________acts of the salespersons he/she sponsors. A. All B. Professional and personal acts C. Personal acts only D. All acts that the broker defines in the scope of authority

D. All acts that the broker defines in the scope of authority. A broker is required to notify a sponsored salesperson in writing of the scope of the salesperson's authorized activities under the Act. What is an authorized act? Almost any act related to buying, selling, or leasing real estate by a license holder, when performed for another, and for or in expectation of receiving valuable consideration, constitutes the practice of brokerage Unless such scope is limited or revoked in writing, a broker is responsible for the authorized acts of the broker's salespersons, but the broker is not required to supervise the salespersons directly. If a broker permits a sponsored salesperson to conduct activities beyond the scope explicitly authorized by the broker, those are acts for which the broker is responsible.

Brokerage company office policies should include: A. Typical employment issues B. State law obligations C. Federal law obligations D. All of the above

D. All of the above. A real estate company should always have an office policy in place that covers employment issues and state and federal laws.

To be eligible for a license a business entity broker must: A. Designate one of its managing officers as its broker B. Provide proof that the entity maintains E & O insurance at $1 million per occurrence if the designated broker owns less than 10% of the business entity C. The business entity's designated broker must be active and in good standing with TREC. D. All of the above

D. All of the above. According to the Occupations Code 1101, A, B, and C are all requirements for a business entity to be eligible to be licensed.

The Texas Real Estate Commission has the power: A. To establish standards of conduct and ethics for licensees B. To enforce all rules and regulations necessary for the performance of its duties C. To issue a real estate license to a person who qualifies for a license D. All of the above

D. All of the above. TREC may establish standards of conduct for the persons licensed under the Act, enforce all rules and regulations necessary for the performance of its duties, and issue a real estate license to a person who qualifies for a license.

If a licensee violates the Texas Real Estate License Act, TREC is permitted to: A. Suspend the person's license B. Place the person's license on probation C. Revoke the person's license D. All of the above

D. All of the above. The Texas Real Estate Commission may suspend a license, place the person's licenses on probation, and revoke the license.

TREC will investigate a complaint if: A. The complaint is in writing and signed. B. The complaint is submitted within 4 years of the incident. C. The complaint is not an anonymous complaint. D. All of the above

D. All of the above. The signed written complaint must give reasonable cause for an investigation

At the time of application for a real estate license, the person must be: A. At least 18 years of age B. A citizen of the United States or a lawfully admitted alien C. Honest, trustworthy, and demonstrate integrity D. All of the above

D. All of the above. When applying for a real estate license, the person must be at least 18, be a U.S. citizen (or lawful alien), and be honest, trustworthy, and demonstrate integrity. Texas residency is no longer a requirement.

A TREC promulgated Farm and Ranch Contract can include: A. Buildings B. Crops C. Equipment D. All of the above

D. All the above. The Farm and Ranch contract can include a house, other buildings, farm equipment, and crops, if applicable.

Information About Brokerage Services should always be given and explained: A. This form is never used. B. After the contract has been signed C. After the closing of the transaction D. At the beginning of the listing presentation

D. At the beginning of the listing presentation. The Information for Brokerage Services states that the form will be presented at the first substantive discussion with the prospect. The listing presentation is considered substantive conversation.

Information About Brokerage Services must be given to potential buyers, sellers, tenants, and landlords: A. At the time of first meeting B. After the listing is taken C. At the closing D. At the first substantive dialogue about a property

D. At the first substantive dialogue about a property. Information About Brokerage Services gives information concerning the ways a broker can represent a person. It gives information about buyer's agency, seller's agency, intermediary, and subagency.

An agent owes a fiduciary duty to a client. These duties include obedience, loyalty, disclosure, and confidentiality. Which one of these duties continues after the agency relationship terminates? A. Disclosure B. Loyalty C. Obedience D. Confidentiality

D. Confidentiality. Anything an agent learns in confidence is confidential until the agent is given permission, in writing, to reveal the information.

A licensee aggrieved by a ruling of the Texas Real Estate Commission can appeal to the: A. Texas governor B. Attorney general's office C. Local board D. District court

D. District court. When the licensee is found guilty in a hearing held by the Texas Real Estate Commission, the licensee may appeal the decision in the district court in the county in which the original hearing was held. An applicant who fails an examination:

If a license holder fails to comply with a subpoena, what can TREC do? A. Contact the broker's attorney directly B. File a suit through the Lt. Governor's office C. File a complaint with the Better Business Bureau D. File a suit through the Attorney General's office

D. File a suit through the Attorney General's office. A subpoena is a written legal order summoning a witness or requiring evidence to be submitted. TREC has the power of subpoena. The Attorney General's office will enforce the subpoena.

Which one of the following is NOT one of the duties an agent owes to a client? A. Obedience B. Loyalty C. Reasonable care D. Hope

D. Hope. The agent owes obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care to the client.

____________ means a broker who is employed to negotiate a transaction between the parties to a transaction and for that purpose may act as an agent of the parties. A. Seller's agent B. Buyer's agent C. Subagent D. Intermediary

D. Intermediary. Intermediary status was created by statute in 1996 to acknowledge that a broker could be in the position of assisting two principals involved in the same transaction. An intermediary is a broker who is employed to negotiate a transaction between parties and acts as an agent of the parties. A broker who represents the buyer and the seller in the same transaction must act as an intermediary.

The six non-public members of the Texas Real Estate Commission are: A. Licensed salesmen B. Appointed by the Senate and approved by the Governor C. Are not actively engaged in real estate and serve the purpose of protecting the public D. Licensed brokers

D. Licensed brokers. The Texas Real Estate Commission is made up of nine members. Six are licensed brokers and three are members of the public. They are appointed by the Governor.

An applicant who fails an examination: A. May apply for reexamination but must wait 7 days before retaking the national portion of the test B. Must retake and pass a 30-hour principles class before applying for reexamination C. Will only be allowed to retest after a six-month wait D. May apply for reexamination by filing a request accompanied by the proper fee

D. May apply for reexamination by filing a request accompanied by the proper fee. This is according to TREC examination rules.

Can there be more than one intermediary in the same transaction? A. Yes, if the seller and buyer are represented by different companies, brokers from each company may be intermediaries. B. Yes, if both the seller and buyer agree. C. No, one broker must be a subagent of the other. D. No

D. No. The sponsoring broker of the firm involved in the intermediary transaction is the intermediary. Agency is always taken at the broker level.

Under what circumstances is a listing broker not required to present an offer? A. The broker has already presented one offer, and the seller is thinking about it. B. The offer is for less than the listing price. C. The broker thinks a better offer will be made tomorrow. D. None of the above

D. None of the above. A broker is required to present all offers unless he has been told in writing by the seller not to present certain offers.

A real estate licensee must use a Texas Real Estate Commission promulgated form unless a form has been written and is required by the: A. Lender B. Salesperson listing the property C. Broker listing the property D Owner of the property

D. Owner of the property. An owner can use any contract he/she chooses. Licensees must use the TREC promulgated forms when the form is available.

Intermediary agency has: A. Become rare and seldom used B. Never been used for an "in house sale" C. Never been used in Texas D. Replaced dual agency

D. Replaced dual agency. Dual agency was when the broker could represent both the buyer and the seller in the same transaction. This is no longer the case.

Which one of the following is not a TREC form? A. One to Four Family Residential Contract (Resale) B. New Home Contract C. Seller's Temporary Lease D. Residential Lease

D. Residential Lease. The Residential Lease is written by TAR and used by a landlord to lease residential property. One to Four is a TREC form, as is the New Home Contract. The Seller's Temporary Lease is a TREC form to be used when the seller of the property stays in the property after closing for a maximum of 90 days.

All of the following would be cause to suspend or revoke a license being held by a broker or salesperson under the Real Estate License Act EXCEPT: A. Knowingly making a substantial misrepresentation B. Acting in the dual capacity of broker and undisclosed principal in any transaction C. Failing to specify in a listing contract a definite termination date which is not subject to prior notice D. Revealing to an owner an offer which your knowledge and experience convince you to be well below "fair market value"

D. Revealing to an owner an offer which your knowledge and experience convince you to be well below "fair market value." Answers "A," "B," and "C" are all listed in the license act as reasons the real estate license could be revoked. Answer "D" is the correct answer. A licensee is required to give the client advice and opinions, and your knowledge and experience would be an example of advice and opinions.

How can sales agents be compensated in Texas? A. Sales agents are compensated directly from the clients they represent. B. Sales agents receive their compensation from the title company. C. Sales agents can be compensated through any third party. D. Sales agents must be compensated through their broker only.

D. Sales agents must be compensated through their broker only. Sales agents are sponsored by their broker. Only the broker may compensate them based on their agreement with the broker (commission split).

TRELA states that to be eligible to receive a real estate license in the state of Texas a person must: A. Demonstrate competence by completing 210 hours of education B. Be at least 22 years old C. Be a resident of this state for 30 days D. Satisfy the Commission as to the person's honesty

D. Satisfy the Commission as to the person's honesty. Passing the state test demonstrates competency. A person must be at least 18 years old. The previous Texas residency requirement has been removed

An employing broker is liable for the actions of his sponsored salespersons: A. Only if the salesperson works with buyers B. Only if the salesperson works with sellers C. Only if the salesperson works with owners and tenants D. The broker is responsible for all the actions of his sponsoring salespersons in all transactions.

D. The broker is responsible for all the actions of his sponsoring salespersons in all transactions. Agency is created at the broker level, and the broker is responsible for all the actions of their sponsored salespersons.

It is time for the license holder to renew their license, but they have not had time to take CE classes. What happens to the license holder? A. They can send the renewal fee to TREC and hope TREC doesn't check to see if they took the renewal classes. B. They can pay the renewal fee plus $100 and TREC will renew their license active and give them 30 days to complete the renewal classes. C. They can't do anything. Their license will expire, and they will be out of the real estate business. D. They can pay the renewal fee plus $200 and TREC will renew their license active and give them 60 days to complete the renewal classes.

D. They can pay the renewal fee plus $200 and TREC will renew their license active and give them 60 days to complete the renewal classes. TRELA allows a license holder to pay $200 and receive 60 extra days in which to complete their continuing education.

Which of the following is true of the rules and regulations of the Texas Real Estate Commission? A. They must be approved by a district court. B. They are approved by the attorney general. C. They must be approved by the senate. D. They have the full force and effect of law

D. They have the full force and effect of law. Texas Real Estate Licensee Act is law. The Texas Real Estate Commissions administers the Texas Real Estate Licensing Act.

In Texas, the contract is often given to the title company to be closed. While waiting to close the transaction, the earnest money is held by the: A. Buyer B. Seller C. Real estate broker D. Title company

D. Title company. If the transaction is going to close at a title company, the title company will hold the earnest money. However, it is not mandatory that the title company always hold earnest money. If the transaction is going to close at an attorney's office, the attorney may hold the earnest money.