Study of Real Estate

Fidelity, Integrity, Competency, the Consumer Protection Notice, and Anti-Discrimination are all addressed in this part of the TREC Rules.

Canons of Professional Ethics and Conduct

The Texas Real Estate Commission has included the ____________ for real estate license holders in the Rules of the Commission.

Canons of Professional Ethics and Conduct

The FHA is not a lender, but a mortgage insurance program that protects the lender from loss in the event of default by the borrower by insuring the full amount of the loan.

False

When a listing agreement has been terminated, the agent must go into the MLS and designate it as a "withdrawal."

False

The Independent Contractor Agreement For Sales Associate is a _____

Texas Realtors®

Which Source of Ethical Standards focuses on common conditions that are important to the welfare or common good of all?

The Common Good Approach

Which Source of Ethical Standards attempts to make ethical actions equal for and at least on a defensible standard?

The Fairness or Justice Approach

Which source of Ethical Standards requires ethical actions that produce the greatest balance of good over harm to those who are affected?

The Utilitarian Approach

the ____ aproach to ethical standards is defined as ethical action that produces the best balance of good over harm

The Utilitarian Approach

Real estate license holders are rarely sued under an action of DTPA.

False

The Deceptive Trade Practices Act is a federal law.

False

Estimated tax liability should be filed using IRS form

1040-ES

For the tax year, the sales agent will receive a ___________ that details all of the commissions paid during the year.

1099-MISC

An EBR can exist with someone who made an inquiry with the broker's company within the last ____ months.

3

TREC requires brokers to keep transactional records for at least ______ years from the date of a closing or the termination of the contract.

4

Enacted in 1990, this federal law removed barriers and created access to public and commercial buildings for all. It also required employment decisions to be based on an applicant's qualifications.

Americans with Disabilities Act

Related to financing contingencies due to a maximum loan amount being a percentage of the lesser of the sale price or appraised value

Appraisal contingency

Barbara is the buyer's agent for Lin. She submits an offer package on Lin's behalf and is careful to include the Third Party Financing Addendum, so the contract will be contingent on Lin's ability to secure financing for $210,000 within 14 days. Lin's offer is accepted. As her financing deadline approaches, Lin's lender decides that she is only eligible to borrow $200,000. What additional amendments, contingencies, or addenda may be used if Lin and the seller decide to proceed with the sale at a lower sales price?

Barbara must submit an amendment that reflects the new, lower sales price

Broker Bob's company, Acme Realty is a small firm with three agents, Sue, Megan and Bill. Agent Sue lists Seller Steve's property. In the firm, who has a fiduciary duty to represent the interests of Seller Steve?

Broker Bob, Sue, Megan and Bill

Most brokerage firms have adopted a ___________ that license holders must follow.

Code of Ethics

Is this good or missrepresentation "Looks good to me!'

Concerning

______________ are small lenders who have the funds necessary to extend loans at their own risk, usually selling their loan to a larger wholesale lender.

Correspondent Lender

Any and all stigma should always be

Disclosed

Passed in 1974, this act covers all creditor who regularly extend credit, prohibiting discrimination and ensuring that all consumers are given an equal chance to obtain credit.

Equal Credit Opportunity Act

A USDA loan is commonly referred to as a Section 8 loan.

False

A special agency relationship is created when a broker hires an agent.

False

Agency can only be terminated by mutual agreement or operation of law.

False

An oral agency agreement is not enforceable against the client or the agent.

False

___________________ is the legal procedure whereby the secured property may be sold to satisfy the unpaid promissory note.

Foreclosure

This GSE was established in 1970 for the purpose of purchasing mortgages in the secondary market:

Freddie Mac

when Broker hires agent

General Agency Relationship

The best way to create an agency relationship is Orally

In Writing

What must you discuss with a possible client before before discussing their wants and needs.

Information About Brokerage Service (IABS)

In 1995, Senate Bill 489 introduced the ______________ process to brokerage in Texas.

Intermediary

Senate Bill 489, passed in 1995, amended the License Act by creating this process:

Intermediary

Barbara is the buyer's agent for Lin. She submits an offer package on Lin's behalf and is careful to include the Third Party Financing Addendum, so the contract will be contingent on Lin's ability to secure financing for $210,000 within 14 days. Lin's offer is accepted. As her financing deadline approaches, Lin's lender decides that she is only eligible to borrow $200,000. This is a multiple choice question. Once you have selected an option, select the submit button below Which of the following options is NOT available to Lin?

Lin can terminate the contract and forfeit her earnest money.

The Government National Mortgage Association, established in 1968, operates the __________________.

Mortgage-backed securities program

What course of action can be taken if You work very hard to find Someone a home without a singed contract , and then they uses a different license holder to submit the contract and buy the home?

No one may file suit for commission since they did not have a signed agreement to establish agency.

This federal law, administered by the Consumer Financial Protection Bureau (the CFPB), concerns residential real estate transactions with federally related financing.

Real Estate Settlement Procedures Act

A license holder is not required to provide the IABS when the license holder meets with a party who is:

Represented by another license holder.

Is this good or missrepresentation Beautiful."

Safe

The federal law that prohibits monopolies and monopolistic practices. In real estate, this law says brokers cannot set commissions between companies and that commissions are always negotiable between a consumer and a service provider.

Sherman Anti-Trust Act

In 1993 TREC addressed the issue of representing clients on both sides of a transaction by adding ___________ to the License Act.

Statutory dual agency

Ethics are habits that enable us to act accordingly as persons who are truthful, honest, courageous, compassionate, generous, tolerant, and possess integrity, fairness, self-control, and prudence.

The Virtue Approach

Agents of a brokerage firm all share the same agency duties to all clients of the firm.

True

All sellers have an obligation to disclose any known material defects to a buyer.

True

Confidentiality of the broker is the duty that survives termination of the agency agreement.

True

Conventional loans are either guaranteed or insured by the federal government.

True

If a license holder fails to specify a termination date in a listing contract, TREC can suspend or revoke his or her license.

True

The broker in the selling firm, if different from the listing firm, is known as the "cooperative broker" in the transaction

True

The first and the oldest accepted form of macro target marketing is Demographic Farming.

True

The first two or three transactions new real estate professionals usually close are with a seller.

True

Veterans who were discharged under any conditions, even dishonorable, can apply for a VA loan.

True

This federal law requires that disclosure in advertising take place when the advertiser uses trigger terms like monthly payment, interest rate, down payment, or the number of payments or term.

Truth in Lending Act

is the process of approving or denying a loan based on an evaluation of the property, the applicant's creditworthiness and ability to repay the debt.

Underwriting

Subagency is:

When a license holder not associated with the sellers broker is representing the seller through a cooperative agreement with the seller's broker.

If you do not make a Buyer/Tenent Representation agreement and you proceed with a " trust worthy client" what might happen?

You wont get paid

disclosure of agency

agency disclosure. a written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction.

what does the consumer protection notice (cn1-3) give consumers a notification of a- how to file a complaint againist a license holders b-trc regulations for brokers sale agents and inspectors among others c-the recovery trust account d-all of these

all of these

compdency

assure to client know how the real estate industry works

An oral agency agreement is enforceable against the ____________, and in unenforceable against the _____________.

broker, client

who always owns listing agreements

brokers

Article 6 of the Code of Ethics requires a Realtor to have the consent of their _____________ before accepting commissions or rebates.

client

Originally, all brokers represented sellers because representation was linked to_______________.

compensation

fidelity

faithfulness; loyalty

all buyers should be provided with an oral or written disclosure of representation at

first contact

The relationship between the broker and sponsored agents is a ___________ relationship.

general agency

Seller Brian gave Acme Realty notice of termination of the listing agreement 60 days into a 180 day term. Seller Brian...

has the power to terminate, but could be liable for damages if the courts determine that it was not done with just cause

Integrety

honest 100%

what does the consumer protection notice gives consumer a notification of?

how to file a report on a licence holder

If a broker learns confidential information during a listing presentation, the broker by _________ might be bound to keep the information confidential if the broker is unsuccessful in obtaining the listing

implication

can we give legal advice

no, only attorneys can

Articles 15 through 17 of the Code of Ethics and Standards of Practice of the National Association of Realtors addresses the agent's duties to ___________________________ .

other Realtors

Article 1 of the Code of Ethics requires that the agent pledge themselves to _____________________the interests of their client.

protect and promote

Is this good or missrepresentation "You should get an inspection.'

safe

_____ may take place when a seller is unable to sell his orher property at above the seller owes the lender.

short sale

The written listing agreement creates a ________________

special agency

a listing agreement must always have a

termination date

price fixing is againist

the anti trust act

TREC has includend _______ for the license holders in the rules of commision

the canons of profesional ethics and conduct of real estate license holders

What is agent coupled with a interest

when the is the buyer or the seller

A buyer is purchasing a home and wants to assume a seller's existing FHA loan. The sales price is $170,000. The seller's existing loan balance is $128,000. This is a multiple choice question. Once you have selected an option, select the submit button below If the loan is assumed by the buyer, can the seller be released from further liability for repayment of the loan?

yes

A buyer is purchasing a home and wants to assume a seller's existing FHA loan. The sales price is $170,000. The seller's existing loan balance is $128,000. This is a multiple choice question. Once you have selected an option, select the submit button below Is this loan assumable?

yes

A buyer is purchasing a home and wants to assume a seller's existing FHA loan. The sales price is $170,000. The seller's existing loan balance is $128,000. This is a multiple choice question. Once you have selected an option, select the submit button below Will the buyer be required to qualify for the assumption?

yes

do you have to disclose when you have a family relation to a client

yes