State Missed Questions
Texas homeowner James is required to present any prospective buyers with a notice as to the legal and economic risks of purchasing coastal property. Which TREC addendum is James required to include?
Addendum for Property Located Seaward of the Gulf Intracoastal Waterway
Jerimiah and his wife Camille are expecting their third child. They're shopping around the Austin area for a two-bedroom, two-bathroom apartment. Are there any occupancy regulations in Texas that would prohibit this from happening?
No, Jerimiah and Camille are within the occupancy standards established under Texas law.
Per the TREC One to Four Family Residential Contract (Resale), to whom does the buyer pay the sale price funds at closing?
An escrow agent
What is the first thing that the earnest money is applied to at closing?
Any cash down payment
You're a sales agent in Texas, and you just received your part of the commission on a recent sales transaction. With whom can you legally share your commission?
Attorneys who are TREC-licensed real estate professionals
When crops are excluded from the sale of a farm or ranch, by when must they be removed from the property?
Before closing
Bobbie is a licensee preparing the contract for her buyer client, who's purchasing a new home that's not yet complete. It will be complete at the time of closing. Which of the following is a true statement?
Bobbie should not use the New Home Contract (Completed Construction).
Approval for financing as described in the TREC Third Party Financing Addendum will be deemed to have been obtained when ______ are obtained.
Buyer approval and property approval
In Texas, if the buyer doesn't object in writing within the time allotted in the Objections paragraph of the TREC One to Four Family Residential Contract (Resale), which of the following is waived?
Buyer's right to object
Connie is helping the Morrisons fill out the Sales Price paragraph of the TREC One to Four Family Residential Contract (Resale). What amount will they put in these spaces?
Cash Price, Sum of all financing and Sales price
If the seller fails to provide the required Seller's Disclosure Notice, the buyer may terminate the contract and have the earnest money refunded up to________.
Closing
Which of the following is a true statement about a residential service contract in Texas?
It's typically for one year of coverage.
Brad, a Texas license holder, is acting on behalf of his brother, Ben, who's selling his home. Is Brad required to provide a written broker or sales agent disclosure notice to the other party in the transaction that he's acting on his brother's behalf?
No, because the broker or sales agent disclosure is not required when acting on behalf of siblings.
Jessica is selling her own home. What promulgated form must she use per TREC rules?
She is not required to use a TREC form per the exception that she is selling the home on her own
You're a broker in Houston. Although your former client, Meghan, is on the Texas Do Not Call list, it's okay for you to call her to solicit business if you have an established business relationship with that person, and were involved in a business transaction with that consumer within ______.
The past 18 months
In situations where a coastline property owner has been forced to remove their home by the state of Texas because the property is now located on public beach property, who or what entity covers the cost of removal?
The property owner is solely responsible for the cost of removal.
When a real estate licensee receives compensation for referring a client to a real estate licensee in a proposed real estate transaction, this is known as ______.
Valuable consideration
Vanessa just received two offers for a Texas listing. One is $15,000 below the asking price, and one is for the asking price. Vanessa's client, Nevaeh, has asked her in writing to not present offers that are more than $10,000 below the asking price. What should Vanessa do?
Vanessa should submit only the offer that meets Nevaeh's request.
If a Texas property is listed in the MLS, but the commission amount is blank, and the fee isn't listed in the buyer agency compensation agreement, what should a buyer's agent do?
Verify that there are commission arrangements in writing
In Texas, when is a licensee required to provide an agency disclosure to the party they are not representing in a transaction?
When engaging in substantive dialogue about a specific property
How many lawyers does the governor appoint to the Broker-Lawyer 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.
There are a few exceptions to the Texas rule requiring sellers to complete a seller property condition disclosure. Which of the options below is an example of such an exception?
Foreclosure properties
Where would the buyer's agent find the seller's legal name, which is needed to complete the Parties paragraph of the TREC residential One to Four Family (resale) contract?
On the deed or owner's title policy
Which of the following statements about being able to sue for unpaid but owed compensation for real estate services rendered is true?
Only a licensed real estate broker or sales agent may sue to collect commissions.
Reginald Barker and Stacey Lee are married and purchasing a property together. Which of the following is the best way to identify them as parties on a sales contract?
Stacey Lee and husband Reginald Barker
Assessments for rollback taxes are the responsibility of ______ under the New Home Contract (Completed Construction).
The seller
Nick, a Texas license holder, is helping his son, Peter, locate a home he can afford to buy and is acting as Peter's agent. Peter has found a property that he wants to make an offer on. Which of the following statements regarding this situation is true?
Nick is required to disclose his relationship to the seller in writing prior to the parties entering into the contract.
If Drake, an alleged violator, wishes to have a hearing, he must submit a written request for a hearing regarding the occurrence of the alleged violation and/or the penalty amount. He must submit this written notification _______.
No later than the 20th day after the date he receives the violation notice from the Standards and Enforcement Division
Where in the Texas sales contract should you indicate that addenda are being attached?
Agreement of parties
The commission can impose up to a maximum of how much per violation of TRELA?
$5,000
When his contract to buy a hip downtown penthouse condo fell through, buyer Kevin submitted a request to the escrow agent to release the earnest money to him. If seller Anita doesn't feel Kevin's request is warranted, she has ______ days to formally object.
15
How many days after receiving the Texas buyer's list of objections to defects, exceptions, or encumbrances to title does the seller have to cure the objections under the TREC One to Four Family Residential Contract (Resale)?
15 days
Non-resident broker Jeremy doesn't maintain a place of business in Texas, even though he practices real estate in Dallas. Which of the following is true of this situation?
A non-resident licensed broker isn't required to maintain a place of business in Texas.
Texas buyer Lydia has opted to have the seller reimburse her for insurance that protects her if something goes wrong with any of the home's major systems or appliances. ______ provides this type of insurance.
A residential service contract
Items that aren't permanently attached to the real property but are assumed to belong to the house—such as draperies, fireplace inserts and screens, and above-ground swimming pools—are referred to in the Property section of the TREC One to Four Family Residential Contract (Resale) as ______.
Accessories
Which of the following statements about agency by ratification in Texas is true?
Agency by ratification is permitted in Texas.
Which of the following describes the purpose of equitable interest according to Texas rules?
Curb unlicensed real estate sales
Which one of these activities may an unlicensed assistant in Texas NOT perform?
Discuss the amenities of a property, with a prospective purchaser or lessee, for compensation
Which of the following qualifies as an example of a buyer default?
Failing to remove one or more contingencies by the agreed-upon date
Jonathan is acting as an intermediary in Texas. He has received written consent from the parties involved in the transaction. What additional requirement does Jonathan need to meet?
Information detailing the broker's compensation and the source of that compensation
In instances where the buyer isn't requesting subdivision information, but the title company is, who pays to obtain the information per the Addendum for Property Subject to Mandatory Membership in a Property Owners Association?
It depends
Which of the following is true regarding the earnest money check in Texas?
It must be written to the escrow agent or title company and held by the buyers' broker until the contract is finalized.
What happens to any excess earnest money when the property closes?
It's refunded to the buyer.
Joy is a licensee preparing the contract for her buyer client, who's purchasing a condominium. Which of the following is a true statement?
Joy should not use the New Home Contract (Completed Construction).
Which federal disclosure required under Title X requires the sellers of residential dwellings built before 1978 to disclose any known information about the existence of lead-based paint on their property?
Lead-Based Paint and Lead-Based Hazards Disclosure of Information
Which of the following is a true statement about TREC-approved and promulgated forms?
Licensees must use promulgated forms, but approved, non-promulgated forms are optional.
Your buyer client, Miranda, has two young daughters, and is concerned that there could be sex offenders in the neighborhood of a house she'd like to buy. By law, you:
May either divulge this information to her, if you know it, or recommend that she do her own research on the sex offender registry—depending on your brokerage's policy for handling such questions
What type of tenancy does a renter have who continues to pay rent after the expiration of a one-year lease?
Month to month
Which of the following Texas promulgated forms is most like the TREC New Home Contract (Completed Construction)?
New Home Contract (Incomplete Construction)
Which Texas-specific law will allow you to legally solicit business over the phone if the consumer has made an inquiry to you or your company within the previous three months?
No Call List
Rick is representing a business in a sales transaction. Rick owns 3% of the business. Is Rick required to provide a written broker or sales agent disclosure notice to the other party in the transaction?
No, because Rick does not own more than 10% of the business.
If Alex, a Texas seller, approves of the buyer's credit documentation, which the buyer delivered on time according to the terms of their Seller Financing Addendum, what must Alex do to show his approval of the seller financing?
Nothing; the buyer's credit is deemed approved if the seller does not terminate the contract within seven days of the date of delivery of the credit documentation.
Jamie is a Texas licensee and is not an attorney. Which of the following would be considered engaging in the unauthorized practice of law?
Providing legal advice to her client
What is the term length for a member of the Texas Real Estate Commission?
Six years
Fair housing complaints submitted to the Texas Workforce Commission Civil Rights Division must ______.
Specify the protected class that was discriminated against
Which of the following statements about the Texas Apartment Association is true?
TAA provides its members with association-prepared lease forms.
By signing the Non-Realty Items Addendum in Texas, what is the seller representing or warranting?
That they own the property and it's free and clear of all encumbrances
An escrow agent is not liable for the bank's loss of earnest money, unless ______.
The bank is the acting escrow agent
In a condominium transaction, which of the following is true?
The buyer pays for a portion of the transfer fees up to a specific amount, and the seller pays the remainder.
Which of the following statements about the closing date in the TREC One to Four Family Residential Contract (Resale) is true?
The buyer selects the settlement date.
In a short sale, what happens if the lienholder refuses or withdraws their consent prior to closing or funding?
The contract is terminated and the buyer's earnest money is refunded.
Which of the following statements about TAR's Release of Earnest Money form is true?
The form releases all parties, brokers, and title companies from all liability under the contract.
Who is responsible for appointing the members of the Texas Real Estate Commission?
The governor of Texas
Who or what entity prepares the resale certificate that's provided to a prospective buyer of a subdivision property or condominium?
The owners association
The ranch that Adam and Maria are interested in buying has a cotton crop already planted on it. Which of the following is a true statement?
The seller needs their permission to harvest the crop after closing.
Kathy and Glen are considering two properties. If they purchase the townhome, which of the following is a true statement?
They will have fee simple ownership of the land beneath their unit.
Under the Texas anti-spam law, businesses have ______ days to remove a consumer's email address from their mailing list.
Three
What's the purpose of the Residential Real Property Affidavit T-47 in Texas?
To help the lender and title company decide whether to accept the seller's existing survey or to request a new survey
According to TREC's Consumer Protection Notice, how many recovery funds does TREC administer?
Two
The Texas Loan Assumption Addendum requires some information about the seller's mortgage, including the name of the lender, interest rate, and any loan assumption fee, monthly payment, and ______.
Unpaid principal balance of the loan