Real Estate Texas Exam
T/F A listing contract form approved by TREC must include a provision informing the parties to the contract that real estate commissions are negotiable.
FALSE. Listings adopted by TREC must include a section explaining the availability of Texas coastal natural hazards information important to coastal resisents
Real Estate Inspectors
Professionals licensed to inspect real estate properties
Apartment Locators
Professionals who assist individuals in finding apartments based on specific criteria
TREC
Texas Real Estate Commission, the governing body for real estate in Texas
Vanessa has had her Texas real estate broker's license for 12 years. What law stipulates the requirements Vanessa must follow to keep her license?
The Texas Real Estate License Act
Real Estate Limited Liability Company
A business entity designed to protect its owners from personal liability
What is the maximum payment amount for a claim from the Recovery Trust Account for a single transaction?
$50,000 (Trust account payments for a single transaction must not exceed $50,000.)
Which Canon of Professional Ethics and Conduct provides "A license holder, while acting as an agent, is a fiduciary and must put the principal's interest above all others, including the agent's. All license holders are expected to deal fairly with all parties"? a) fidelity b) integrity c) competency d) disclosure
A.
Broker Assumed Business Name (DBA)
Another name for a broker's business
What is the purpose of the Texas Real Estate License Act?
To protect the public
The Canons of Professional Ethics and Conduct includes which of the following? a) Obedience b) Loyalty c) Fidelity d) confidentiality
C. Fidelity is one of the canons. Obedience, loyalty, and confidentiality are fiduciary duties.
After a complaint is filed, and an investigation of a possible violation and related facts is conducted, if the Standards and Enforcement Division of TREC determines that a violation has occurred, it may issue a notice of violation to the alleged violator. Which of the following must be included in this notice?
TREC's recommendation regarding imposition of an administrative penalty or another disciplinary sanction
The Recovery Trust Account should maintain a balance of at least what amount?
$1.7 million
The Education Standards Advisory Committee is comprised of ______ members.
12 (The Education Standards Advisory Committee consists of 12 members, broken down as follows: seven active licensees, four education members, and one public member.)
TREC will issue a notice of violation to anyone it feels has violated the law by performing a prohibited activity. If an accused violator completely disagrees with TREC, that person has the right to request a hearing within how many days?
20 days
Third Party
An entity or person not directly involved in a transaction but plays a role, such as collecting rent
Designated Officer
An individual appointed to represent a licensed real estate corporation
Equitable Interest
An interest in a property that gives the holder rights but not full ownership
E&O Insurance
Errors and Omissions Insurance, a type of professional liability insurance
T/F License holders may place a For Sale sign on a vacant lot next to their own property without the consent of the property owner so that they may capture buyers
FALSE. A license holder may not place a For Sale sign on a property w/o the written consent of the owner or owner's agent
T/F Sales agents may receive a referral fee from a broker other than their sponsoring broker
FALSE. Sales agents may only receive commissions form their sponsoring broker
T/F displaying the Consumer Protection Notice is evidence of nondiscriminatory practice
FALSE. TRELA requires brokers to display the Consumer protection Notice as a notification to the public of the availability of the Real Estate Trust Recovery Account. Failure to display the HUD Equal Housing Opportunity Housing poster is considered by HUD to be evidence of discrimination
The seven members of the ESAC committee who are real estate professionals must have been actively engaged in the practice of real estate for at least ______ years before appointment.
Five
For how many years following an incident does TREC allow a person to file a complaint against a license holder?
Four years
The ESAC does which of the following?
Makes recommendations for improvements to real estate education (The ESAC makes recommendations for improvements to real estate education to the Real Estate Commission, which implements them.)
Which of the following is the duty of the State Office of Administrative Hearings at a hearing of an alleged violator?
Making findings of fact and conclusions of law
How many members of the general public must be on the ESAC committee?
One
In addition to its power to impose stiff administrative penalties, TREC also has the authority to ______.
Revoke or suspend an agent's or broker's license
Which of the following is a responsibility of the Texas Real Estate Commission, as provided in the Texas Real Estate License Act?
Rulemaking authority for real estate licensees that has the full force and effect of the law
SAE
Sales Agent Apprentice Education, educational requirements for sales agents in their first two years
In order to qualify as one of the ______ real estate professional members of the ESAC, you must have been actively engaged in the practice of real estate for five years prior to appointment.
Seven (The seven members of the committee who are real estate professionals must have been actively engaged in the practice of real estate for at least five years before appointment.)
Sofia is thinking of become a real estate professional. Which of the following is a true statement?
She will be directly affected by the work of the ESAC through course curriculum, content, and licensing requirements.
How long is a member of TREC's term?
Six years
Licensing Process
Steps and requirements to obtain a real estate license
What agency is charged with ensuring the balance of the Recovery Trust Account is maintained at $1.7 million or higher?
TREC
Which of the following parties has the authority to file a complaint or conduct an investigation into a complaint about a real estate licensee in Texas?
TREC
Which of the following entities promulgates forms for Texas licensees?
TREC (TREC promulgates the forms drafted by the Broker-Lawyer Committee.)
Which of the following entities promulgates forms for Texas licensees?
TREC (NOT the broker-lawyer committee) (TREC promulgates the forms drafted by the Broker-Lawyer Committee.)
Considering TREC's authority under the laws of TRELA, which of the following statements is true?
TREC has the authority to suspend or revoke any license holder's license
Before being amended and renamed as the Texas Real Estate License Act, what was the name of the act that regulated licensed real estate activity?
The Real Estate Dealers Act
TREC is made up of nine members, all of whom are appointed by the governor, with the advice, consent, and approval of ______.
The Senate (The Senate must give advice and consent to the commissioners appointed by the governor.)
The ESAC makes recommendations for improvements to real estate education to ______, which implements them.
The Texas Real Estate Commission
If TREC denies a license, it must immediately provide written notice of the denial to the applicant, explaining that ______.
The applicant is entitled to a hearing about the denial
The commission must maintain a file on each complaint that it receives. Each complaint must contain certain information, including ______.
The subject matter of the complaint
An unlicensed person who practices real estate in Texas is guilty of committing a Class A misdemeanor with a fine of up to $4,000 and faces a TREC administrative penalty of up to $5,000 per violation. The violator is also liable to the state for a civil penalty of a maximum of more than ______ times more than the amount of compensation received from that unlicensed activity.
Three
When members of the Education Standards Advisory Committee are appointed, how many years do they serve?
Two
Which Canons of Professional Ethics and Conduct provides "A license holder must be prudent and cautious to avoid all acts of misrepresentation"? a) fidelity b) integrity c) competency d) disclosure
B.
TREC has a great deal of authority. In addition to enforcing the provisions of TRELA, TREC also has the authority to ______.
Bring legal action and file criminal charges against a person who violated TRELA
TREC must notify consumers of their right to file a complaint against a licensed sales agent, broker, or certificate holder by which of the following means?
By displaying it in a readily noticable location in each place of business the broker maintains
Court Appointed Receivers
Individuals appointed by the court to manage a property or asset
Auctioneers
Individuals who conduct auctions, including those for real estate transactions
On-site Apartment Managers
Individuals who manage apartment complexes, usually living on the property
Team Name
A name used by a group of agents or brokers under a broker
Alternate Name
A name used by an individual license holder other than the name on their license
Broker
A person who acts as an intermediary between sellers and buyers of real estate
Inactive Status
A status where a license holder is not actively practicing real estate but still holds a license
Commission Split
A division of commission between multiple parties, often between agents and brokers
A broker may not pay a commission or other compensation, directly or indirectly, to someone performing an act for which a license is required, unless that person is what?
A license holder in Texas or a licensed broker in another state
A license holder must be knowledgeable and informed and exercise judgement and skill. A license holder is considered "competent" to engage in real estate brokerage activities by completing a) all of the prelicensing courses b) all of the prelicensing courses and taking the licensing exam c) all of the prelicensing courses and passing the licensing exam d) all of the prelicensing courses, taking the licensing exam, and completing 3,600 qualifying experience points
C
All of the following are included in the Canons of Professional Ethics and Conduct EXCEPT a) fidelity b) integrity c) reasonable skill and care d) competency
C. Reasonable skill and care is a fiduciary duty.
CE
Continuing Education, ongoing educational requirements for real estate professionals
All of the following are grounds for suspension, revocation, or denial of a license EXCEPT a) being negligent, incompetent, dishonest, or untrustworthy b) allowing or working with another to break license law c) allowing an unlicensed employee to act as a license holder d) advising a buyer to get an abstract or title insurance policy
D. A license holder is required to advise a buyer to get an abstract or title insurance policy
T/F Under the Canons of Professional Ethics and Conduct, fidelity provides that a real estate broker or sales agent, while acting for another, is a fiduciary. This demands that the primary duty of the real estate agent is to represent the interests of the client, and the brokerage's position, in the respect, would be implied to all parties concerned in a real estate transaction.
FALSE. The primary duty of the real estate agent is to represent the interests of the client. The agent's position, in this respect, should be made clear to all parties concerned in a real estate transaction.
T/F A broker who maintains a trust must keep a record of al account deposits and withdrawals for a period of seven years
FALSE. The trust account documents must be maintained for no less than four years for TREC and no less than seven years for the IRS.
Texas Licensed Attorneys
Legal professionals licensed to practice in Texas
Real Estate License
Permission to participate in real estate transactions in Texas
TREC does NOT have the right to do which of the following?
Prohibit a license holder from using a contract that has been drafted by the property owner's attorney.
George is a member of the Texas Education Standards Advisory Committee (ESAC) and is currently reviewing a real estate program that administers courses of study to post-licensing students. The committee has received several complaints that these courses are of poor quality. What authority does the review committee have in these cases?
Recommend that TREC suspend the program and those that administer the courses of study
T/F Property management agreements are NOT bound to the same requirements of other representation agreements in regards to a definite termination date
TRUE A definite termination date is not required in a property management agreement
T/F All parties in a transaction have the right to receive all documents that have their signature or initials on the documents
TRUE. There are disciplinary actions for failing to provide copies of all signed documents to the signing parties
T/F A real estate broker or sales agent has a special obligation to exercise integrity in the discharge of the license holder's responsibilities
TRUE. A license holder must be prudent and cautious to avoid all acts of misrepresentation
T/F License holders may have their license revoked or suspended for offering a property for sale by means of a lottery
TRUE. Offering a property for sale by means of a lottery is grounds for disciplinary action against a license holder
TALCB
Texas Appraisers Licensing and Certification board, responsible for licensing real estate appraisers
Which authority is responsible for providing promulgated contract forms and enforcing license law in Texas?
Texas Real Estate Commission
The Texas Broker-Lawyer Committee contains different types of members appointed by different parties. How many lawyers
Zero
The Texas Broker-Lawyer Committee contains different types of members appointed by different parties. How many lawyers does the governor appoint to this committee?
Zero (The governor appoints one member, and that person is a member of the public. The lawyers are appointed by the president of the Texas Bar Association.)