Texas Real Estate Exam Prep

D) None The answer is none. There is no statutory redemption period after a foreclosure sale under the terms of the power of sale clause in a deed of trust mortgage instrument.

A homeowner loses his property in a foreclosure sale following a default in the payment of the mortgage. The trustee named in the deed of trust conducted the foreclosure sale. How many months does the defaulting homeowner have to redeem the property after the foreclosure sale? A) 60 months B) 24 months C) 6 months D) None

A) might not have his license revoked as long as the broker was not negligent in supervising the activities of the salesperson. The answer is might not have his license revoked as long as the broker was not negligent in supervising the activities of the salesperson. A broker is liable to the Commission, the public, and the broker's clients for any conduct engaged in by the broker or a salesperson associated with or acting for the broker. By rule, however, TREC mitigates the responsibility of the broker by stating that the broker is responsible only for the authorized act of the salesperson. A strong training program and/or a well-written office policy manual prohibiting such activity would probably result in TREC not suspending or revoking the broker's license if the broker could show that the broker was not aware of the salesperson's actions and the salesperson exceeded the scope of the authority delegated to the salesperson by the broker. That said, a broker could face disciplinary action for "acting negligently or incompetently by failing to monitor and properly supervise the brokerage activities of a sponsored salesperson."

A salesperson engaged in activities that constitute violations of the Texas Fair Housing Act, including blockbusting and discrimination on the basis of disability. The salesperson also cashed a $25,000 earnest money check from a prospective buyer and used the proceeds to buy a new car. The salesperson's sponsoring broker was unaware of these activities. In the event a complaint is filed with the Texas Real Estate Commission, the sponsoring broker A) might not have his license revoked as long as the broker was not negligent in supervising the activities of the salesperson. B) is legally responsible and must receive the same disciplinary action as the salesperson, regardless of whether the broker knew the violations had occurred. C) will be held liable for the Texas Fair Housing Act violations only. D) will be required to pay any fine imposed against the salesperson out of the broker's personal funds.

A) the notice must be delivered to the purchaser before the effective date of the contract. The answer is the notice must be delivered to the purchaser before the effective date of the contract. If the notice is not delivered to the purchaser before the effective date of the contract, the purchaser may terminate the contract for any reason within the earlier of seven days after the date the purchaser receives the notice or the date of closing.

A seller of residential real property that is subject to membership in a property owners' association is required to give a prospective purchaser a written notice. All of the following are true regarding the written notice EXCEPT A) the notice must be delivered to the purchaser before the effective date of the contract. B) the notice must state that the purchaser would be obligated to be a member of the association. C) the notice must state failure to pay association assessments could result in a lien on and the foreclosure of the property. D) the promulgated Addendum For Property Subject To Mandatory Membership In A Property Owners Association.

C) Status as a broker on each page of the site The answer is status as a broker on each page of the site. Each page of the website must indicate her status as a broker or agent.

A broker has developed a website advertising the broker's office. What, if anything, does the broker need to include? A) No need for any additional disclosures B) License number of the brokerage and list of current active license holders C) Status as a broker on each page of the site D) Names, addresses, and phone numbers of active license holders

A) both parties give their written informed consent to the dual compensation. The answer is both parties give their written informed consent to the dual compensation. In an intermediary transaction, both parties must give their informed written consent to the dual compensation.

A broker who is representing both parties as an intermediary may receive a commission from both the seller and the buyer, or landlord and tenant, if A) both parties give their written informed consent to the dual compensation. B) the broker holds a state license. C) the buyer and the seller are related by blood or marriage. D) both parties are represented by attorneys.

C) LMN Realty has obtained the listing broker's and the seller's consent to subagency and the buyer is given the TREC Information About Brokerage Services form (or a statutorily legally comparable form) explaining the buyer's right to be represented if desired and that compensation of the broker by a party does not necessarily determine that the broker represents that party. The answer is LMN realty has obtained the listing broker's and the seller's consent to subagency and the buyer is given the TREC Information About Brokerage Services form (or a statutorily legally comparable form) explaining the buyer's right to be represented if desired and that compensation of the broker by a party does not necessarily determine that the broker represents that party. Even if XYZ Realty routinely offers subagency to other brokers, XYZ's seller client could decide to selectively reject a subagency relationship with LMN Realty for various reasons, including a perceived or actual conflict of interest; therefore, the consent of the seller should also be obtained. Even if the buyer allows, or declines to allow, LMN to act as his buyer agent, the licensee must still give the buyer the statutory written statement contained in the TREC Information About Brokerage Services form (or in a statutorily permitted comparable information form) informing the buyer that the buyer has the right to be represented if the buyer so chooses.

A buyer asks a salesperson with LMN Realty to show the buyer a house listed with XYZ Realty but does not wish to enter into an agency relationship. As long as the buyer is informed that LMN Realty represents the seller, the salesperson from LMN Realty may show the buyer the house, and the broker for LMN Realty may then act as a subagent of the seller if A) this cannot occur. B) the buyer signs a document stating that the buyer does not wish to be represented. C) LMN Realty has obtained the listing broker's and the seller's consent to subagency and the buyer is given the TREC Information About Brokerage Services form (or a statutorily legally comparable form) explaining the buyer's right to be represented if desired and that compensation of the broker by a party does not necessarily determine that the broker represents that party. D) LMN Realty obtains XYZ Realty's consent to subagency and the buyer is given the TREC Information About Brokerage Services form (or a statutorily legally comparable form) stating that both XYZ and LMN Realty represent the seller and that compensation of the broker by a party does not necessarily determine that the broker represents that party.

C) salesperson provides the buyer with an Information About Brokerage Services form at the first substantive dialogue and discloses the company's agency status with the seller. The answer is salesperson provides the buyer with Information About Brokerage Services form at the first substantive dialogue and discloses the company's agency status with the seller. The salesperson must indicate that the brokerage represents the seller and provide the buyer with the Information About Brokerage Services (IABS) form or an equivalent statutorily acceptable written statement containing the same information as the IABS at the first substantive dialogue about a specific property as required by TRELA.

A buyer prospect is interested in viewing a house listed with the real estate company, but does not wish to enter into a buyer representation agreement. A salesperson from the real estate company can show the buyer an in-house listing if the A) salesperson obtains the seller's permission. B) buyer orally agrees to buyer agency. C) salesperson provides the buyer with an Information About Brokerage Services form at the first substantive dialogue and discloses the company's agency status with the seller. D) salesperson provides the buyer with a dual agency consent form properly executed by both the licensee and the buyer.

A) actual damages, court costs, attorney fees, and up to treble damages if the court finds conduct committed knowingly or intentionally. The answer is actual damages, court costs, attorney fees, and up to treble damages if the court finds conduct committed knowingly or intentionally. The amount of damages is determined by the court under guidelines set by statute and may not exceed treble damages. Treble damages are not automatic and apply only if the trier of fact finds that the conduct of the defendant was committed knowingly or intentionally.

A consumer prevails in a suit for a cause of action involving the Texas Deceptive Trade Practices Act. The maximum the consumer may be awarded by a court is A) actual damages, court costs, attorney fees, and up to treble damages if the court finds conduct committed knowingly or intentionally. B) actual damages plus $5,000 punitive damages and court costs. C) three times actual damages. D) actual damages plus court costs and attorney fees.

B) community property. The answer is community property. Community property consists of all property, real and personal, acquired by either spouse during the marriage-with the exception of property acquired by gift, inheritance, purchase from separate funds, sale of separate property, personal injury settlement, or written contract with a spouse.

A couple is engaged to be married. Any real estate that either owns at the time of marriage will remain that spouse's property in severalty, and property acquired after the wedding belongs to both of them equally. The form of ownership upon their marriage will be A) tenancy in common. B) community property. C) joint tenancy. D) cooperative.

D) the broker's commission exceeds statutory and NAR guidelines. The answer is the broker's commission exceeds statutory and NAR guidelines. Texas statutes and NAR do not set guidelines for commissions. While net listings are legal in Texas, this example illustrates the conflict of interest that a net listing provokes. The broker was not working in the best interest of the client and failed to limit himself to a specified maximum commission as required by law.

A seller told a broker that she wanted to net $50,000 when she sold her house. The broker accepted the listing and did not specify a maximum amount for the broker's commission in the listing agreement. The broker sold the house for $160,000. The broker gave $50,000 to the seller and kept the rest. All of the following are true EXCEPT A) the broker should have given the seller his true opinion of the market value of her house. B) as the seller's agent, the broker had a duty to sell the house for the best possible price for his client while limiting the broker to only a specified maximum commission. C) the broker took unfair advantage of the client and failed to put the client's interest above his own. D) the broker's commission exceeds statutory and NAR guidelines.

D) order the licensee to refund the security deposit. The answer is order the licensee to refund the security deposit. The Commission may order a licensee to pay a refund to a consumer instead of or in addition to imposing an administrative penalty or other sanctions. The amount may not exceed the amount the consumer paid for the service.

After an investigation, the Commission determines that a licensee acting as a property manager improperly withheld a tenant's security deposit. In addition to awarding an administrative penalty, the Commission may also A) award damages up to three times the amount of the security deposit. B) do nothing because the Commission may not involve itself in monetary disputes between licensees and consumers. C) order the landlord to return the security deposit. D) order the licensee to refund the security deposit.

C) redeem the property within a two-year time limit. The answer is redeem the property within a two-year time limit. Texas law provides for a statutory right of redemption (two years for homestead property) after the tax sale during which the defaulted owner may redeem the property by paying the amount paid at the tax sale, plus interest and other charges, including 25% of the purchase price during the first year and 50% during the second year.

After real estate has been sold by the city or county to satisfy a delinquent tax lien, the defaulted owner of a homestead usually has a right to A) file a judgment lien against the purchaser at the tax foreclosure sale. B) have the sale canceled by paying the back taxes and penalties. C) redeem the property within a two-year time limit. D) redeem the property within a three-year time limit.

D) placing a For Sale sign in front of a house after receiving written permission to post the sign. The answer is placing a For Sale sign in front of a house after receiving written permission to post the sign. A broker must always have written consent to erect a For Sale or lease sign on a property.

All of the following are violations of the Texas Real Estate Licensing Act EXCEPT A) failing to disclose to a potential purchaser any latent structural defects known to the license holder. B) encouraging a seller to reject an offer because the of the prospective buyer's religion. C) receiving a commission without the knowledge and consent of the license holder's client. D) placing a For Sale sign in front of a house after receiving written permission to post the sign.

D) sale by a real estate license holder of a previously occupied single-family residential property. The answer is sale by a real estate license holder of a previously occupied single-family residential property. With a few exceptions, the Seller's Disclosure of Property Condition applies to the transfer of most previously occupied single-family residential dwelling units. It does not apply to a duplex, triplex, et cetera, even though they are residential. It does not apply to commercial property, a foreclosure sale, a transfer between family members in the lineal line of consanguinity of one or more of the transferors, new homes not previously occupied, or a conveyance from one former spouse to another under a divorce settlement agreement. The Property Code places on the seller, not the real estate licensee, the requirement to provide the written disclosure notice. A licensee acting as the agent of the seller has a fiduciary duty to inform his client about the requirements of the Property Code.

All of these transactions are exempt from the duty to provide a written disclosure of property condition under the Texas Property Code EXCEPT A) foreclosure sale. B) sale by a father to his son. C) conveyance of a primary residence from one former spouse to another under a divorce settlement agreement. D) sale by a real estate license holder of a previously occupied single-family residential property.

B) second working day, or as agreed upon in writing by the parties to the contract. The answer is second working day, or as agreed upon in writing by the parties to the contract. TREC rules require that other people's money, such as earnest money and security deposits, if held by the broker as escrow agent or trustee for the funds, must be deposited by the close of business the second working day the license holder receives the money as escrow agent in a real estate transaction after the agreement becomes a binding contract. That is unless another time has been agreed to by the parties in writing. Note: The TREC promulgated contract forms are worded such that neither broker is required by the contract to ever even see the earnest money check. The TREC promulgated contract forms state that "upon execution of this contract by all parties, Buyer shall deposit...." This contractual provision places the burden for deposit of the earnest money on the buyer and does not allow for a "close of business the second working day" provision. Under the terms of the buyer's offer, if using a TREC promulgated form, the seller's broker appears to have no contractual right to require that the earnest money or earnest money check be submitted with the buyer's offer. Requiring photocopies of the buyer's earnest money check to show to the seller is likely a meaningless and unnecessary gesture.

All trust funds received by a broker on behalf of the principals must be deposited in the broker's escrow or trust account or with an escrow agent named in the contract by the close of business on the A) third working day, or as agreed upon in writing by the parties to the contract. B) second working day, or as agreed upon in writing by the parties to the contract. C) tenth working day, or as agreed upon in writing by the parties to the contract. D) fifth working day, or as agreed upon in writing by the parties to the contract.

A) She does not need a real estate license to sell her house herself. The answer is she does not need a real estate license to sell her house herself. Property owners who rent, sell, or buy property for themselves are exempt from licensing requirements.

An individual wants to sell her own house. Which statement is TRUE? A) She does not need a real estate license to sell her house herself. B) The individual may obtain a temporary real estate license in order to legally sell her house. C) She may sell her house without obtaining a real estate license only if she is a licensed attorney. D) In Texas, anyone who sells real property must have a real estate license issued by the Real Estate Commission.

D) In Texas, brokers are permitted to add additional clauses to blank form contracts, such as the clause described here, that do not directly involve the conveyance of title to real property. The answer is the broker should advise the buyer and the seller to each obtain legal counsel before inserting such an unusual item into the contract. Only a licensed attorney, or the parties themselves, should prepare a clause describing and defining legal rights and remedies for inclusion in the sales contract. A licensee could face disciplinary action for not advising the parties to have the issue resolved by legal counsel before the instrument is to be executed.

If a buyer wants to include language that establishes a contingency and that says the earnest money may be returned to the buyer upon the buyer's sole demand, which statement is TRUE? A) The broker should advise the buyer and the seller to each obtain legal counsel before inserting such an unusual item into the contract. B) The broker may write and include the clause because it is common practice for brokers to write such language. C) Under Texas law, a clause, such as the one described here, is permitted to be written by an attorney paid for by the licensee for the buyer. D) In Texas, brokers are permitted to add additional clauses to blank form contracts, such as the clause described here, that do not directly involve the conveyance of title to real property.

D) license may be revoked until the Recovery Trust Account has been reimbursed. The answer is license may be revoked until the Recovery Trust Account has been reimbursed. The commission, upon making a payment from the trust account, may revoke the license of the offending licensee until the recovery trust account has been reimbursed, plus interest.

If a payment is made from the Recovery Trust Account because of acts of a licensee, the A) licensee is liable to the damaged party to the extent provided by the Deceptive Trade Practices Act. B) status of the broker or salesperson license cannot be affected. C) license is suspended until the Recovery Trust Account has been reimbursed. D) license may be revoked until the Recovery Trust Account has been reimbursed.

B) Four The answer is four. A licensee maintaining a trust account must retain a documentary record of each deposit or withdrawal from the account for a period of four years.

If a real estate broker maintains a trust account, how many years must that broker retain records of all deposits and withdrawals from the account? A) Two B) Four C) No statutory limit D) One

A) Voidable at the option of the buyer The answer is voidable at the option of the buyer. The contract allows for the buyer to terminate the agreement if the seller's disclosure is not delivered as required.

If a seller fails to provide the buyer with the seller's disclosure of property condition as required by the Texas Property Code, what is the status of the purchase contract? A) Voidable at the option of the buyer B) Unenforceable C) Valid and enforceable D) Void

B) for any reason. The answer is for any reason. The owner must disclose latent structural defects or any other known structural defects on or before the effective date of a contract for the sale of real property. If a contract is entered into without the seller's providing the notice, the seller is given a limited time to provide the notice to the buyer. If the seller delivers the notice within the time frame, the buyer may still terminate the contract for any reason within seven days after receiving the notice.

If the Seller's Disclosure Notice is NOT given prior to the execution of the contract, the purchaser may, within seven days after receiving the notice, terminate the contract A) only if the property does not pass inspections. B) for any reason. C) for just cause. D) only if the buyer's loan is not approved.

A) agreeing to accept a listing on behalf of the broker for less than the broker's normal commission rate. The answer is agreeing to accept a listing on behalf of the broker for less than the broker's normal commission rate. Commission rates are always negotiable between the seller and the broker.

In Texas, all of the following actions would be grounds for revoking a salesperson's license EXCEPT A) agreeing to accept a listing on behalf of the broker for less than the broker's normal commission rate. B) failure of a license holder to notify the Commission within 30 days after being convicted of a felony involving fraud. C) commingling money that belongs to another in the licensee's personal checking account. D) failure to identify the person publishing an advertisement as a licensed broker or agent.

D) fill in blanks on preprinted contract forms promulgated by the Texas Real Estate Commission. The answer is fill in blanks on preprinted contract forms promulgated by the Texas Real Estate Commission. Texas license holders must use TREC-promulgated forms, unless another is required by the property owner or otherwise fits one of the four specific exemptions under TREC Rules: TREC does not promulgate contract forms for commercial transactions or leases, except for two temporary residential lease forms which are part of a sales contract. The blanks may be filled in at the direction of the consumers who make final decisions and sign the contract. However, real estate license holders who are not lawyers must be careful to avoid any appearance of the Unauthorized Practice of Law. The broker and salespersons are special agents hired for a very narrow purpose, which does not ordinarily include signing the name of the principal.

In Texas, brokers and salespersons who are NOT lawyers may A) explain the legal significance of specific preprinted contract clauses to a buyer or a seller. B) complete a bill of sale after a sales contract has been signed. C) suggest additional language to be added to a preprinted sales contract by a buyer or seller. D) fill in blanks on preprinted contract forms promulgated by the Texas Real Estate Commission.

A) negotiable between the client and the broker. The answer is negotiable between the client and the broker. Commissions are always negotiable between the principal and the agent. The commissions are not determined by law, the Real Estate Commission, or a group of local brokers. Any attempt to set commission rates among competitors in the real estate industry would be considered an antitrust violation. A broker does not commit an antitrust violation by requiring all the broker's own licensees to charge a specific rate or amount so long as the broker does not conspire or agree with competing brokers to do the same. All listings and buyer/tenant representation agreements in the firm belong to the broker. Therefore, the broker is only prescribing a commission amount for all the broker's own agreements.

In Texas, real estate commissions are A) negotiable between the client and the broker. B) set by law. C) set by the Texas Real Estate Commission. D) determined by local groups of brokers.

C) Seller disclosure of known property conditions is required by state statute. The answer is seller disclosure of known property conditions is required by state statute. In Texas, written property disclosures must be made for the sale of most previously occupied single-family dwelling units, whether or not a real estate agent is used. There are 11 exemptions to providing the statutory disclosure. However, all sellers and brokers must disclose latent structural defects and other forms of material property deficiencies, if they are aware of them.

In Texas, when a broker is listing a home and asks the seller to complete the Seller's Disclosure of Property Condition, which statement is TRUE? A) An agent should give the seller advice regarding which property conditions to disclose and which to ignore. B) The standard disclosures cover a narrow range of structural conditions only. C) Seller disclosure of known property conditions is required by state statute. D) The disclosures are optional, so the seller and the broker may avoid liability by simply telling the buyer that since the property is being sold as-is, the seller is not required to disclose property defects.

An attorney licensed to practice law The answer is an attorney licensed to practice law. Only licensed attorneys may prepare legal documents such as deeds, mortgages, deeds of trust, and notes.

In Texas, who is authorized to draft deeds, mortgages, deeds of trust, and notes? A) A licensed real estate broker B) The mortgage lender C) An attorney licensed to practice law D) The title company clerk

B) prior to the buyer's making a written offer. The answer is prior to the buyer's making a written offer. The Seller's Disclosure of Property Condition should be delivered to the buyer prior to the buyer's making a written offer. The notice shall be delivered by the seller to the purchaser on or before the effective date of an executory contract binding the purchaser to purchase the property. If a contract is entered without the seller providing the notice required by this section, the purchaser may terminate the contract for any reason within seven days after receiving the notice.

In a situation where the Seller's Disclosure of Property Condition is required, in order to have a contract that cannot be terminated by a buyer for failure to receive the disclosure on or before the effective date of an executory contract binding the purchaser to purchase the property, the seller's agent should ensure the disclosure be delivered to the buyer or the buyer's agent A) at the time that the seller agrees to the offer. B) prior to the buyer's making a written offer. C) prior to closing. D) at the time of the home inspection.

C) it is illegal for a broker to rebate a portion of the commission to a principal to a transaction. The answer is it is illegal for a broker to rebate a portion of the commission to a principal to a transaction. Under certain circumstances, it is legal for a broker to rebate a portion of the commission to the principal if the payment is strictly a rebate and is not made for a real estate service, such as a referral. The rebate may be in any form such as cash, gift certificates, appliances, frequent flyer certificates, et cetera.

In regards to rebates, all of the following are true EXCEPT A) accepting an undisclosed rebate or profit on an expenditure for a principal demonstrates lack of ability to perform with honesty, trustworthiness, and integrity. B) title insurance companies are prohibited from paying rebates to real estate licensees. C) it is illegal for a broker to rebate a portion of the commission to a principal to a transaction. D) if a real estate licensee accepts a rebate or direct profit on an expenditure made for a principal, it must be disclosed to the party they represent.

C) deeds to Texas land may be in English or Spanish. The answer is deeds to Texas land may be in English or Spanish. Since 1837, all deeds to Texas land must be in English. Deeds made prior to that date may be in Spanish if an English translation is attached.

In regards to recording documents in Texas, all of the following are true EXCEPT A) an instrument conveying real property may not be recorded unless it is signed and acknowledged or sworn to by the grantor in the presence of two or more credible subscribing witnesses or acknowledged by an officer authorized to take acknowledgments of oaths. B) the purpose of recording in the office of the county clerk in the county where the land is located is to give to everyone interested in a property's title notice of the interests of all other parties. C) deeds to Texas land may be in English or Spanish. D) all instruments affect¬ing any estate, right, title, or interest in land must be recorded in the office of the county clerk in the county where the land is located.

C) permitted in Texas but discouraged. The answer is permitted in Texas but discouraged. Net listings are legal but discouraged because of a potential conflict of interest. Net listings are permitted by TREC only when the principal (1) requires a net listing and (2) where the principal appears to be familiar with current market values. Additionally, when negotiating any listing, net or otherwise, or even offering to purchase the property on the licensee's own account as a result of a contact made while acting as a real estate agent, a "licensee is obligated to advise a property owner as to the licensee's opinion of market value of a property."

Net listings are A) permissible with approval of the Commission. B) more profitable because no minimum is set on the amount of commission collectible. C) permitted in Texas but discouraged. D) illegal in Texas.

B) Neither spouse may sell any real estate owned as part of their community property, unless both spouses sign the sales contract and deed. The answer is neither spouse may sell any real estate owned as part of their community property, unless both spouses sign the sales contract and deed. Because each has an undivided interest in the property, without a suit to partition, neither spouse may sell any real estate owned as part of their community property, unless both spouses sign the sales contract and deed, particularly for homestead property. This may not be entirely true in every case, but the exceptions will not be considered here or likely on any exam. Texas does not recognize tenancy by the entirety.

Regarding community property, which of the following is TRUE? A) Any real estate that is part of a married couple's community property is held by spouses in a tenancy by the entirety. B) Neither spouse may sell any real estate owned as part of their community property, unless both spouses sign the sales contract and deed. C) Technically, one spouse owns two-thirds of a couple's community property, whereas the other spouse owns only one-third. D) Upon the death of either spouse, and if the deceased left a will, all of the community property automatically belongs to the surviving spouse, and the deceased's separate property is distributed according to the deceased's will.

C) No definite termination date The answer is no definite termination date. Listings must have a definite termination date not subject to prior notice.

Regarding listing agreements in Texas, which of the following might result in the suspension or revocation of an individual's real estate license? A) A specified commission rate B) No broker protection clause C) No definite termination date D) A specific termination date

D) the broker and the seller for nondisclosure. The answer is the broker and the seller for nondisclosure. Any license holder is liable for misrepresentation or concealment of a material fact if she knew of the fact and failed to disclose.

Six months after a buyer bought a house, the roof leaked during a rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they agreed not to tell any prospective buyers. The broker claims that the buyer did not ask about the roof and also declined to have the property inspected. Under these facts, the buyer probably has a cause of action against A) the seller, but not the broker, who must obey the client. B) the broker, but not the seller, for nondisclosure. C) neither the broker nor the seller because the leaking roof could have been discovered by inspection. D) the broker and the seller for nondisclosure.

B) drafts and edits forms. The answer is drafts and edits forms. The Broker-Lawyer Committee drafts and edits forms, whereas TREC approves and promulgates forms.

The Broker-Lawyer Committee A) promulgates forms. B) drafts and edits forms. C) approves forms. D) approves and promulgates forms.

A) failing to specify a definite termination date in a lease. The answer is failing to specify a definite termination date in a lease. The requirement of the Texas Real Estate License Act regarding termination dates in contracts does not apply to lease agreements. The license, however, may be suspended or revoked for accepting an undisclosed commission; offering property for sale by means of a lottery; or placing a sale or lease sign on property without the written consent of the owner.

The Texas Real Estate Commission may suspend or revoke a real estate license for all of the following causes EXCEPT A) failing to specify a definite termination date in a lease. B) placing a sign on real estate without written consent of the owner. C) receiving an undisclosed commission from the buyer. D) offering real estate for sale through a lottery.

D) by the broker. The answer is by the broker. Either buyer or seller can draw up their own contractual agreement; however, a licensee that draws up a contractual agreement for one or both parties is in violation of TRELA and TREC and is guilty of the Unauthorized Practice of Law.

The Texas Real Estate Commission prohibits a license holder from using a sales contract drafted by A) the buyer. B) an attorney. C) the seller. D) by the broker.

B) broker discloses negative material facts about the property that might affect the sale even though the buyer does not ask for it. The answer is broker discloses negative material facts about the property that might affect the sale even though the buyer does not ask for it. Licensees must disclose material facts to a potential buyer concerning significant defects, including latent structural defects, even if the buyer does not inquire. Failure to disclose would constitute misrepresentation by omission.

The Texas Real Estate License Act requires that the A) broker discloses everything that the seller tells the broker. B) broker discloses negative material facts about the property that might affect the sale even though the buyer does not ask for it. C) seller discloses all facts that might impact negotiations of the transaction. D) broker keeps all information that the seller has provided confidential.

D) homestead. The answer is homestead. Created by the Texas Constitution, homestead is a legal life estate in land that is owned and occupied as the family home. The purpose of the Texas homestead law is to protect the family against eviction by general creditors and to protect spouses by requiring that both spouses join in executing any deed conveying homestead property or in any document creating a voluntary lien on the homestead property.

The constitutional right enjoyed by the head of a Texas household in property occupied by the family is called A) survivorship. B) entirety. C) community property. D) homestead.

C) exempt from real estate licensing requirements. The answer is exempt from real estate licensing requirements. The office manager is performing non-real estate brokerage activities and is not managing or supervising licensees and therefore would not be required to hold a real estate license.

The office manager for a local real estate firm is responsible for the following activities: coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office manager is A) required to have a salesperson's license. B) required to have a broker's license. C) exempt from real estate licensing requirements. D) violating the license law.

D) are spouses. The answer is are spouses. Community property is a system of property ownership based on the theory that each spouse has an equal interest in all property acquired during marriage; therefore, it is a form of co-ownership involving spouses.

Under community property, the co-owners A) are joint tenants with right of survivorship. B) inherit the deceased spouse's one-half interest upon the death of one co-owner. C) must own equal interests in all real and personal property. D) are spouses.

A) Under no circumstances The answer is under no circumstances. A salesperson may engage in real estate activity under the sponsorship of only one broker. If TREC receives a request from a broker to sponsor a salesperson already sponsored by another broker, TREC will notify the former broker to immediately return the license to the Commission.

Under what circumstances, if any, may a licensed salesperson be sponsored by more than one Texas broker? A) Under no circumstances B) With the permission of the salesperson's sales manager C) With the permission of the Real Estate Commission D) With the written consent of the brokers

B) have completed 15 hours of continuing education in the last 2 years, including 3 hours in legal and 3 hours in ethics. The answer is have completed 15 hours of continuing education in the last 2 years, including 3 hours in legal and 3 hours in ethics. Any license holder who is not subject to the annual education requirement of TRELA must show that she has attended during the term of the current license at least 15 classroom hours of acceptable continuing education. Brokers who sponsor salespersons must take a 6 hour broker responsibility course regardless of when they became brokers.

Unless otherwise exempt, to renew a license in Texas a broker must A) have completed hours of acceptable continuing education in the last 2 years. B) have completed 15 hours of continuing education in the last 2 years, including 3 hours in legal and 3 hours in ethics. C) pay a fee and send back the expiring license. D) be actively participating in the real estate business.

A) $50,000 The answer is $50,000. Payments, including attorneys' fees, interest, and court costs, are limited to $50,000 on behalf of any one transaction, regardless of the number of claimants.

What is the maximum aggregate amount that can be paid from the real estate license holder Real Estate Recovery Fund arising out of the same transaction? A) $50,000 B) $100,000 C) $20,000 D) $5,000

C) General warranty The answer is general warranty. General warranty deeds offer the grantee (typically a buyer) the greatest protection and are most commonly used for transfer of Texas property. All six TREC-promulgated contract forms call for title to be delivered by a general warranty deed.

What type of deed is to be used at closing to convey the title to real property, which is the subject of an agreement to purchase based on a TREC-promulgated contract form? A) Quitclaim B) Special warranty C) General warranty D) Bargain and sale

D) usually have no right to have the debtor's home sold. The answer is usually have no right to have the debtor's home sold. Unless a creditor can show the borrower secured a purchase with a lien that is foreclosable against Texas homesteads, the creditor would have no right to have the debtor's home sold for non-payment of the debt.

When a homeowner who is entitled by Texas law to a homestead exemption is sued by creditors, the general creditors A) can have the court sell the home and apply the full proceeds of the sale to the debts. B) can force the debtor to sell the home to pay them. C) can have the sheriff serve an eviction notice. D) usually have no right to have the debtor's home sold.

C) must be returned to the Real Estate Commission, and the salespersons are prohibited from further activity as licensees until they have obtained new sponsoring brokers. The answer is must be returned to the Real Estate Commission, and the salespersons are prohibited from further activity as licensees until they have obtained new sponsoring brokers. If the broker's license is suspended or revoked, all the salespersons' licenses must be returned to the Commission and are on inactive status until sponsored by a new broker.

When a sponsoring broker's license is suspended for two years, the licenses of the salespersons sponsored by the broker A) will also be suspended for a two-year period. B) will remain active as the suspension has no effect on the licenses of the salespersons. C) must be returned to the Real Estate Commission, and the salespersons are prohibited from further activity as licensees until they have obtained new sponsoring brokers. D) will be revoked, subject to reinstatement after one year.

A) Integrity The answer is integrity. The Canons of Professional Ethics and Conduct define integrity to include "...employment of prudence and caution so as to avoid misrepresentation...by acts of commission or omission."

Which Canon of Professional Ethics requires that the broker or salesperson employ prudence and caution in the discharge of her duties to avoid misrepresentation? A) Integrity B) Fidelity C) Competency D) Accounting

A) Change the locks within seven days after a new tenant takes occupancy The answer is change the locks within seven days after a new tenant takes occupancy. The premises must be rekeyed no later than seven days after a new occupant takes possession of a leasehold premise. Smoke detectors must be operational at the time the tenant is granted possession; battery maintenance then becomes the responsibility of the tenant. Keyless deadbolts are required but not double cylinder locks.

Which of the following actions is required of a landlord of residential property? A) Change the locks within seven days after a new tenant takes occupancy B) Provide functioning smoke detectors by periodically replacing batteries C) Change the locks prior to granting possession to a new tenant D) Provide double-cylinder deadbolts on each exterior door

C) A company that, for an advance fee, matches individuals from different parts of the country who want to exchange properties and assists them in doing so The answer is a company that, for an advance fee, matches individuals from different parts of the country who want to exchange properties and assists them in doing so. Matching individuals for a fee or commission is an act of brokerage and requires a real estate license.

Which of the following requires a real estate license? A) An executor selling a decedent's building B) A person employed by a builder to sell the new homes C) A company that, for an advance fee, matches individuals from different parts of the country who want to exchange properties and assists them in doing so D) An onsite apartment manager who collects rent on behalf of the owner of the apartment complex

D) A lease for a term of more than 1 year must be in writing to be enforceable. The answer is a lease for a term of more than 1 year must be in writing to be enforceable. Only a lease for one year or less may be oral and still enforceable. The Texas Statute of Frauds requires leases for more than one year to be reduced to writing to be enforceable.

Which of these statements is TRUE? A) A lease for 9 months must be reduced to writing to be enforceable. B) A lease for 15 months can be oral and still enforceable. C) A lease for less than 6 months must be in writing to be enforceable. D) A lease for a term of more than 1 year must be in writing to be enforceable.