Texas Real Estate State Portion Study

Vanessa is a sales agent who must renew her license in two months. Unfortunately, she has put off taking her continued education courses, and now there is no possible way for her to complete the required 18 hours prior to renewal. Does she have any other options?

Yes. Vanessa can defer her continued education requirements, but she must take them and renew her license before the 60th day from the date her license expired.

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 (The accused violator has a right to request a hearing no later than the 20th day after the violation notice is received.)

Which of the following can hold a broker's license in Texas?

A person or an entity

Which of the following statements about agency by ratification in Texas is true?

Agency by ratification is permitted in Texas.

In which of the following does a new tenant take the place of a departing tenant, becoming solely responsible for the lease?

Assignment

Which of the following statements about the termination option in TREC's residential One to Four Family (resale) contract is true?

Buyers who choose to take the option and pay the option fee can terminate the contract by giving notice within a specified time frame.

Janet is thrilled to have found a beautiful piece of land in the country. She plans to build a home on her "five acres of heaven." The land was part of a farm where there was previously an agricultural exemption. What does this mean?

Rollback taxes will be assessed if the land's use is changed.

Bobby is buying Tandra's property. They have a closing date of October 3. Bobby will move in early on September 15, and pay rent to Tandra, who is moving out September 12. What date should be listed as "buyer possession" in the sales contract?

September 15, when Bobby moves in (The seller may move out early, but that has nothing to do with buyer possession. Buyer possession is when the buyer actually has possession of the property. It may be before or after closing and funding.)

Simone is a trustee for her children's trust fund. Simone is also a broker. When she buys or sells investment property on behalf of that trust, which of the following is required by Texas law?

Simone must disclose in writing to the other party that she holds a real estate license. (When Simone is a trustee for a trust of which her children are beneficiaries, she must notify the other party in writing that she holds a real estate license.)

If a Texas licensee is found guilty of a fair housing violation, the _____________could also award monetary damages to the complainant.

TWCCRD

As a requirement of licensure, which of the following agencies perform a criminal background check on all license applicants?

The FBI and the Department of Public Safety

______ enforces the Canons of Professional Ethics and Conduct in Texas.

The Texas Real Estate Commission

Who is required to sign and date the TAR Seller's Disclosure Notice?

The buyer and seller only (The seller is verifying that the form is complete and accurate as of the date it is signed. The buyer is acknowledging that they've received the disclosure.)

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 commission?

The governor of Texas

According to the Addendum for Property Subject to Mandatory Membership in a Property Owners Association, within how many days of receiving subdivision information does the buyer have to terminate the contract?

Three

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 (Jonathan needs to specify the source of the broker's compensation within the same written consent document.)

The Federal Trade Commission requires that certain information be provided to consumers who purchase new homes that are incomplete. What is it?

Information on the R-value of installed insulation (The FTC requires that information on the R-value of installed insulation be included in or attached to the New Home Contract (Incomplete Construction).)

Which of the following is a true statement about the Special Provisions section of the TREC One To Four Family Residential Contract (Resale)?

It may not be used to cover a situation for which a promulgated form exists.

Atticus is considering using utilities interruption as a means of collecting rent. Which of the following statements is true about what Atticus is planning to do?

It's illegal.

Unlicensed consumers may only perform real estate activities in certain situations. In which of these scenarios would the consumer need a real estate license in Texas?

Jessie is searching for a new home for a friend moving into town. Jessie will be compensated 2% of the sale price for her time and effort.

Karen, the seller, has sent a counter-offer to Fred, a potential buyer. Before Fred accepts the counter-offer on the Texas property, Karen receives another offer from James that is even better. She wants to accept James's offer. What should Karen do?

Karen must withdraw the counter-offer to Fred before responding to James's offer

The listing agent is responsible for collecting and having the sellers sign the appropriate listing agreement forms. Which form authorizes the listing agent to place a lockbox and key on the property?

Keybox Authorization by Tenant (The Keybox Authorization by Tenant authorizes the listing agent to place a lockbox and key on the property.)

Lyle, an investor, secures an owner-occupied loan at a much lower rate than the general public is allowed, yet never plans to live in the property. What crime is Lyle committing?

Mortgage fraud

Can a license holder be held liable if they are unaware that a party to a real estate transaction is concealing information pertaining to that same real estate transaction?

No, the license holder was not aware of the dishonesty and is not liable.

Per the Short Sale Addendum, when does the time for giving notice of termination begin if the buyer has the unrestricted right to terminate the contract?

On the effective date of the contract

To whom are licensees in Texas required to give the Information About Brokerage Services (IABS) form?

Prospective clients

What is the purpose of the license holder disclosure requirement of the TREC residential resale contract?

To protect the public by requiring license holders to disclose to the other party that they have a real estate license when they, close relatives, or certain entities are parties to a transaction

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 (The name of the seller(s) must match that on the deed or owner's title policy. Because Texas is a community property state, the parties' marital status must also be included.)

How many days does a broker have to notify TREC if their business address has changed?

10 days

The Education Standards Advisory Committee is comprised of ______ members.

12

In Texas, when is a licensee required to provide an agency disclosure?

At the time that the licensee is having the first substantive dialogue about a specific property with the party whom they are not representing in the transaction

Under which Texas law, can consumers receive damages of up to triple their original damages if they can show that the licensee acted "knowingly"?

DTPA

Nikola is a seller who agrees to allow the buyer to assume his mortgage loan. What addendum will he need if he wants to terminate the contract if his application for release of liability is not approved by closing?

Addendum for the Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement (The Addendum for the Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement will allow Nikola, the seller, to indicate that the contract will terminate if his release of liability is not approved by the closing date.)

According to the Source of Commission section in the TAR Residential Buyer/Tenant Representation Agreement, from whom will the broker first seek to obtain payment of the commission?

Seller, landlord, or their agents

How many members does TREC appoint to the Broker-Lawyer Committee?

Six

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