Chapter 7
How old does a person need to be to receive a real estate license?
18 years of age
A person who files a petition for judicial review must request the court to stay enforcement by filing with the court an affidavit stating that the person is financially unable to pay the penalty and is financially unable to give the supersedeas bond. The person must file that petition within what period of time?
30 days
According to the Sunset Act, when would the licensee code expire if it isn't renewed?
6 years after its last renewal
What information must a license applicant submit for the purpose of obtaining criminal history record information from the Department of Public Safety and the Federal Bureau of Investigation?
A legible set of fingerprints, on a form prescribed by the commission
What is the liability of a licensee when a party to a real estate transaction concealed a material fact?
A licensee is NOT LIABLE for a misrepresentation or concealment of a material fact made by a party to a real estate transaction, unless the licensee knew of the misrepresentation or concealment and failed to disclose it.
What is meant by the term substantive dialogue?
A meeting or written communication that involves a substantive discussion relating to specific real property. The term does not include a meeting that occurs at a property that is held open for any prospective buyer or tenant or a meeting or written communication that occurs after the parties to a real estate transaction have signed a contract to sell, buy, or lease the real property concerned.
What are the investigation rules relating to an anonymous complaint?
An investigation or other action against a person licensed under this chapter or Chapter 1102 may not be initiated on the basis of an anonymous complaint.
What are some exemptions when you can sell without a license?
An owner selling his or her own property Auctioneers auctioning real property An individual employed by a business entity for the purpose of buying, selling, or leasing real property for the entity
List four persons who would be exempt from needing a license to sell property. (See "Exemptions" for other correct answers.
An owner selling his or her own property Auctioneers auctioning real property An individual employed by a business entity for the purpose of buying, selling, or leasing real property for the entity Persons operating under a court order, such as an executor, trustee, or receiver
Sec. 1101.502. Eligibility Requirements for "Right of Way" Certificate says that a person must be __________ to be eligible to receive a certificate of registration or a renewal certificate under Subchapter L.
Be at least 18 years of age and a citizen of the United States or a lawfully admitted alien.
Where must the interest from the investments in the trust account be deposited?
Interest from the investments must be deposited to the credit of the trust account.
How may the money in the trust account be invested?
Money credited to the trust account may be invested in the same manner as money of the Employees Retirement System of Texas, except that an investment may not be made that would impair the liquidity necessary to make payments from the trust account as required by Subchapter M
How may an advisory committee conduct meetings?
They may hold a meeting by telephone conference call, video conferencing, or other broadcast technology.
What do the rules relating to contract forms say about license holder's use?
They require license holders to use contract forms prepared by the Texas Real Estate Broker-Lawyer Committee and adopted by the commission.
For how long is a license active before renewal is required?
Twenty-four (24) months
Subchapter E: Public Interest/Complaint Procedures
deals with the procedures for letting the public know how to file a complaint. It also covers what action the commission takes when someone files a written complaint against a licensee.
Sec. 1101.252. Committee Membership
defines the makeup of the Texas Real Estate Broker-Lawyer Committee as consisting of 13 members
Sec. 1101.059. Training
describes the contents of the training program for new commission members.
Sec. 1101.404. Examination Results
discusses how exam results will be handled
Sec. 1101.253. Terms, Vacancies
discusses the length of time members hold office and how vacancies are handled
Sec. 1101.161. Gifts, Grants, and Donations
explains that the commission may solicit and accept a gift, grant, donation, or other item of value from any source to pay for any activity under this chapter or Chapter 1102 or 1103
Sec. 1101.204. Complaint Investigation and Disposition
explains the powers of the commission as it applies to investigating complaints.
What is the purpose of the Real Estate Recovery Fund?
The Real Estate Recovery Fund was established for the protection of the public against harmful actions by licensees.
What are Easement or Right-of-Way (ERW) agents?
is a person who negotiates easements and eminent domain processes on behalf of a company, government agency or property owner.
What is the primary purpose of the license law?
is to protect the public from dishonesty or incompetence among real estate licensees
What is the makeup of the Texas Broker Lawyer Committee and who appoints them?
made up of 13 members appointed as follows: Six (6) members appointed by the commission Six (6) members of the state bar of Texas appointed by the president of the state bar One (1) public member appointed by the governor
What is a Business Entity?
means a "domestic entity" or "foreign entity" as those terms are defined by Section 1.002, Business Organizations Code
What is a certificate holder?
means a person registered under Subchapter K
What is a Residential rental locator?
means a person who offers for consideration to locate a unit in an apartment complex for lease to a prospective tenant. The term does not include an owner who offers to locate a unit in the owner's complex.
What is a broker?
means a person who, in exchange for a commission or other valuable consideration or with the expectation of receiving a commission or other valuable consideration, performs for another person
What does real estate mean?
means any interest in real property, including a leasehold, located in or outside this state. The term does not include an interest given as security for the performance of an obligation, or a mortgage.
What does commission mean?
means the Texas Real Estate Commission
Subchapter G: Accreditation of Real Estate Educational Programs
outlines how the commission will establish education standards. It also outlines what the approval process for real estate courses will be
Sec. 1101.305. Review Committee
outlines the appointment of a committee to review educational program performance
What is the Texas Sunset Act?
provided for a commission (called the Sunset Commission) to review most state agencies every 6 years. Its purpose is to determine if they should be continued or abolished.
What is a subagent?
represents the seller through cooperation with and the consent of a broker. representing the seller. isn't sponsored by or associated with the seller's broker
Sec. 1101.206. Public Participation
requires the commission to develop and implement policies that provide the public with a reasonable opportunity to appear before the commission and to speak on any issue under the commission's jurisdiction.
Sec. 1101.159. Use of Technology
requires the commission to implement a policy requiring the commission to use appropriate technological solutions to improve the commission's ability to perform its functions. The policy must ensure that the public is able to interact with the commission on the Internet.
Sec. 1101.203. Complaint Information
requires the commission to maintain a system to promptly and efficiently act on complaints filed with the commission.
Sec. 1101.559. Broker Acting as Intermediary
says that a broker may act as an intermediary between parties to a real estate transaction if the broker obtains written consent from each party for the broker to act as an intermediary in the transaction and the written consent of the parties states the source of any expected compensation to the broker
Sec. 1101.754. Private Cause of Action For Certain Violations by Broker, Salesperson, or Certificate Holder
says that a person who receives a commission or other consideration as a result of acting as a broker or salesperson without holding a license or certificate of registration under this chapter is liable to an aggrieved person for a penalty of not less than the amount of money received or more than three times the amount of money received. The aggrieved person may file suit to recover a penalty under this section.
Sec. 1101.405. Reexamination
says that an applicant who fails an examination may apply for reexamination by filing a request accompanied by the proper fee
Sec. 1101.054. Official Oath
says that each appointee must take the constitutional oath of office no later than the 15th day after the date of appointment
Sec. 1101.103. Code of Ethics, Standards of Conduct
says that each member, officer, employee, and agent of the commission is subject to the code of ethics and standards of conduct imposed by Chapter 572, Government Code
Sec. 1101.608. Commission Response
says that on receipt of notice under Section 1101.606 and the scheduling of a hearing, the commission may notify the attorney general of the commission's desire to enter an appearance, file a response, appear at the hearing, defend the action, or take any other action the commission considers appropriate.
Sec. 1101.006. Application of Sunset Act
says that the Texas Real Estate Commission is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the commission is abolished and this chapter, Chapter 1102, and Chapter 1303 of this code and Chapter 221, Property Code, would expire September 1, 2025
Sec. 1101.457. Deferral of Continuing Education Requirements
says that the commission by rule may establish procedures under which an applicant may have his or her license issued, renewed, or returned to active status before the applicant completes continuing education requirements
Sec. 1101.155. Rules Relating To Contract Forms
says that the commission may adopt rules in the public's best interest that require license holders to use contract forms prepared by the Texas Real Estate Broker-Lawyer Committee and adopted by the commission
Sec. 1101.701. Imposition of Administrative Penalty
says that the commission may impose an administrative penalty on a person who violates this chapter or a rule adopted or order issued by the commission under this chapter
Sec. 1101.201. Public Interest Information
says that the commission must prepare information of public interest describing the functions of the commission and make that information available to the public and appropriate state agencies
Sec. 1101.554. Copy of Salesperson License
says that the commission will deliver or mail a copy of each salesperson license to the broker with whom the salesperson is associated.
Sec. 1101.363. Issuance of License
says that the commission will issue an appropriate license to an applicant who meets the requirements for a license
Sec. 1101.601. Real Estate Recovery Trust Account
says that the commission will maintain a real estate recovery trust account to reimburse aggrieved persons who suffer actual damages caused by an act described by Section 1101.602 committed by a license holder, a certificate holder, or a person who does not hold a license or certificate and who is an employee or agent of a license or certificate holder.
Sec. 1101.402. Waiver of Examination
says that the commission will waive the examination requirement for an applicant if they meet the special criteria
Sec. 1101.505. Denial of Certificate
says that the denial of a certificate of registration is subject to the same provisions as are applicable under Section 1101.364 to the denial of a license.
Sec. 1101.504. Certificate Expiration
says that the duration, expiration, and renewal of a certificate of registration are subject to the same provisions as are applicable under Section 1101.451 to the duration, expiration, and renewal of a license.
Sec. 1101.506. Change of Address
says that within 10 days after the date a certificate holder moves its place of business from a previously designated address, the holder must notify the commission of the move and obtain a new certificate of registration that reflects the address of the new place of business
Sec. 1101.156. Rules Restricting Advertising or Competitive Bidding
says the commission may not adopt a rule restricting advertising or competitive bidding by a person regulated by the commission except to prohibit a false, misleading, or deceptive practice by the person.
Sec. 1101.104. Qualifications and Standards of Conduct Information
says the commission will provide, as often as necessary, to its members and employees information regarding their: qualifications for office or employment under this chapter and Chapter 1102. responsibilities under applicable laws relating to standards of conduct for state officers or employees.
Sec. 1101.154. Additional Fee: Texas Real Estate Center
states how fees will be collected for renewals.
Sec. 1101.507. Display of Certificate
states that a certificate holder must prominently display at all times the holder's certificate of registration in the holder's place of business
Sec. 1101.501. Certificate Required
states that a person may not sell, buy, lease, or transfer an easement or right-of-way for another, for compensation or with the expectation of receiving compensation, for use in connection with telecommunication, utility, railroad, or pipeline service unless the person holds a license issued under this chapter or holds a certificate of registration issued under this subchapter.
Sec. 1101.0055. Nonapplicability of Law Governing Cancellation of Certain Transactions
states that a service contract that a license holder enters into for services governed by this chapter isn't a good or service governed by Chapter 601, Business & Commerce Code
Sec. 1101.454. Salesperson License Renewal
states that an applicant applying for the first renewal of a salesperson license must provide to the commission satisfactory evidence of completion of at least 18 semester hours, or equivalent classroom hours, of core real estate courses.
Sec. 1101.5041. Criminal History Record Information Requirement for Certificate
states that an applicant for an original certificate of registration or renewal of a certificate of registration must comply with the criminal history record check requirements of Section 1101.3521.
Sec. 1101.4521. Criminal History Record Information for Renewal
states that an applicant for the renewal of an unexpired license must comply with the criminal history record check requirements of Section 1101.3521
Sec. 1101.106. Equal Employment Opportunity Policy, Report
states that the Executive Director or the Executive Director's designee must prepare and maintain a written policy statement to ensure implementation of an equal employment opportunity program under which all personnel transactions are made without regard to race, color, disability, sex, religion, age, or national origin.
Sec. 1101.362. Waiver of License Requirements: Previous License Holders
states that the commission by rule may waive some or all of the requirements for a license under this chapter for an applicant who was licensed under this chapter within the six (6) years preceding the date the application is filed.
Sec. 1101.202. Complaints
states that the commission by rule will establish methods by which consumers and service recipients are notified of the name, mailing address, and telephone number of the commission for the purpose of directing a complaint to the commission
Sec. 1101.158. Advisory Committees
states that the commission may appoint advisory committees to perform the advisory functions assigned to the committees by the commission.
Sec. 1101.7015. Delegation of Executive Director's Authority
states that the commission may authorize the Executive Director to delegate to another commission employee the Executive Director's authority to act under this subchapter.
Sec. 1101.365. Probationary License
states that the commission may issue a probationary license and the commission by rule will adopt reasonable terms for issuing a probationary license.
Sec. 1101.364. Denial of License
states that the commission must immediately give written notice to the applicant of the commission's denial of a license.
Sec. 1101.102. Division of Responsibilities
states that the commission will develop and implement policies that clearly separate the policy making responsibilities of the commission and the management responsibilities of the Executive Director and the staff of the commission.
Sec. 1101.205. Complaint Investigation of Certificate Holder
states that the commission will investigate a signed complaint received by the commission that relates to an act of a certificate holder or a person required to hold a certificate under Subchapter K.
Sec. 1101.503. Issuance of Certificate
states that the commission will issue a certificate of registration to an applicant who meets the requirements for a certificate of registration.
Sec. 1101.561. Duties of Intermediary Prevail
states that the duties of a license holder acting as an intermediary under this subchapter supersede the duties of a license holder established under any other law, including common law
Sec. 1101.056. Officers
states that the governor will designate a commission member who is a licensed broker as presiding officer
Sec. 1101.662. Temporary Suspension
states that the presiding officer of the commission will appoint a disciplinary panel consisting of three commission members to determine whether a person's license to practice under this chapter should be temporarily suspended
Sec. 1101.555. Notice To Buyer Regarding Abstract or Title Policy
states that when an offer to purchase real estate in this state is signed, a license holder must advise each buyer, in writing, that the buyer should either have the abstract covering the real estate that is the subject of the contract examined by an attorney chosen by the buyer or be provided with or obtain a title insurance policy.
Sec. 1101.502. Eligibility Requirements for "Right of Way" Certificate
to be eligible to receive a certificate of registration or a renewal certificate under this subchapter, a person must be at least 18 years of age and a citizen of the United States or a lawfully admitted alien.
Is a Rental Locator required to have a license under Chapter 1101?
yes
A person appointed to the TREC is: A. not entitled to reimbursement for the travel expenses incurred in attending required training programs. B. entitled to a maximum of $150 a day reimbursement for the travel expenses. C. entitled to reimbursement for the travel expenses incurred in attending required training programs. D. not entitled to more than $125 per day for TREC related work.
C. entitled to reimbursement for the travel expenses incurred in attending required training programs.
What order can be given by TREC to stop an illegal real estate-related activity?
Cease and Desist Order
A commission member would be removed from office under what conditions?
Does not have the required qualifications at the time of appointment Does not maintain the required qualifications during service on the commission Is ineligible for membership Cannot discharge the member's duties for a substantial part of the member's term Is absent from more than half of the regularly scheduled commission meetings during each calendar year, unless the absence is excused by majority vote of the commission
What is a licensee liability with regard to disclosures about HIV or AIDS?
A person is not civilly or criminally liable because the person failed to inquire about, make a disclosure relating to, or release information relating to whether a previous or current occupant of real property had, may have had, has, or may have AIDS, an HIV-related illness, or HIV infection as defined by the Centers for Disease Control and Prevention of the United States Public Health Service.
What must be submitted for the Commission to investigate the actions of a licensee?
A person submits a signed, written complaint. The complaint, and any evidence presented with the complaint, provide reasonable cause for an investigation.
What is the training required of a commissioner before they vote or deliberate?
A person who is appointed to and qualifies for office as a member of the commission may not vote, deliberate, or be counted as a member in attendance at a meeting of the commission until the person completes a training program that complies with this section.
What is the real estate license status of a person conducting a real estate transaction under a court order? A. The person is exempt from holding a real estate license. B. The person is required to hold a real estate license. C. The person must apply for a temporary real estate license D. The person is allowed to purchase a one-time use real estate license.
A. The person is exempt from holding a real estate license.
Sec. 1101.352. License Application states the following
Each applicant for a broker or salesperson license must submit an application on a form prescribed by the commission. Each applicant for a broker or salesperson license must disclose in the license application whether the applicant has entered a plea of guilty or nolo contendere to a felony or been convicted of a felony and the time for appeal has elapsed or the judgment or conviction has been affirmed on appeal.
What happens if the balance in the trust account falls below $1 million?
Each license holder at the next license renewal must pay, in addition to the renewal fee, a fee that is equal to the lesser of $10 or a pro rata share of the amount necessary to obtain a balance in the trust account of $1.7 million
What must a broker do with regard to his or her affiliated licensees if the broker is applying for inactive license status?
The broker must terminate his or her association with each affiliated salesperson by giving written notice to each salesperson before the 30th day preceding the date the broker applies for inactive status.
What are the rules for non-English speaking persons with regard to access of the commission's programs?
The commission must prepare and maintain a written plan that describes how a person who does not speak English or who has a physical, mental, or developmental disability may be provided reasonable access to the commission's programs.
What is the status of a license that has not been renewed in two years?
The person must reapply.
What does subchapter Q deal with?
a licensee's liability pertaining to certain disclosures. It also discusses a broker's responsibility for the acts and omissions of any of his or her affiliated licensees.
What does a salesperson mean?
a person who is associated with a licensed broker for the purpose of performing an act described in the definition of Broke
Subchapter F: Broker-Lawyer Committee
creates the Texas Real Estate Broker-Lawyer Committee and describes what duties the members on this committee have with regard to creating and revising the standard contracts Texas licensees use
Sec. 1101.558. Representation Disclosure
begins by defining "substantive dialogue" as meaning a meeting or written communication that involves a substantive discussion relating to specific real property.
Sec. 1101.105. Career Ladder Program, Performance Evaluations
charges the Executive Director or the Executive Director's designee to develop an intra-agency career ladder program. That must require intra-agency postings of all non-entry level positions concurrently with any public posting.
What does subchapter p address?
civil penalties for violations by brokers, salespersons, and certificate holders
