Texas State Real Estate Exam

Which required clause in a Texas deed contains the phrase "to have and to hold" and defines or limits the ownership of interest of the grantee?

habendum

Unlike Texas, there are states that follow what organization's policy allowing two people per bedroom as a "reasonable standard."

housing and urban development

The Federal Trade Commission requires that information about the ______ in new homes be included in or attached to the New Home Contract (Incomplete Construction).

insulation installed

agency by ratification

is an agency relationship that is created because the principal approved of an agents unauthorized action after the action occurred. permitted in texas

Any service of process served upon TREC for a non-resident broker must be made with duplicate copies. One copy must be filed in the TREC office, and the other must be ______.

must be emailed to the non resident broker

Before Texas broker Holmes can start using an assumed business name in an advertisement, which of the following must occur?

must register the name with TREC

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 20th day

A Texas resident who's performing real estate activities under the judgment or order of a court, such as a trustee in a bankruptcy, is _______.

not required to have a real estate license

In a sublease situation in Texas, who has the right to evict the sublessee?

only the original tenant

Finley's tenancy comes with an automatic renewal clause. Which of the following type of tenancy does he have?

periodic estate

Which of the following is true regarding probate?

probate is used whether the died with or without a will

Barbara, a Texas sponsoring broker for Longhorn Realty, paid Gwendolyn, a buyer, a portion of the commission Longhorn received from the sales transaction. This is known as ______.

rebate

Which type of document is issued by an HOA and is provided by the seller in a transaction?

resale certificate

An agent who buys, sells, leases, or transfers easements is also known as what kind of agent?

right of way agent

Tom is anxious to sell his unimproved property so he can use the funds to pay for his daughter's college tuition. He finally has an interested buyer, Nate. However, because the land is unimproved, the lender is requiring a much larger down payment than Nate can afford, so he can't get financing from a lender. What type of financing might enable Nate to buy the property anyway?

seller financing addendum

Which of the following requires that a legal description of the property be included in a real estate contract in Texas?

statute of frauds

You discover that there's a registered sex offender in the neighborhood and decide to disclose this information to your client. Are you breaking the law?

No, revealing this information isn't prohibited, but neither is it required. You should follow your brokerage's policy on the matter.

A nonresident license applicant who resides in a municipality in which the boundary is contiguous with the boundary of a Texas municipality may be licensed under Texas law in the same manner as a Texas resident, provided that ______.

The nonresident has been a resident of that municipality for at least the 60 days immediately preceding the date the application is filed.

Which of the following statements about Texas business entities is true?

Unless a business entity holds a real estate license, that entity may not act as a broker.

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

a person or an entity

Which of the following statements about liens is true?

both mechanics and materialmans liens are junior liens

Which of the following describes the purpose of equitable interest according to Texas rules?

curb unliscensed real estate sales

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 he doesnt own more than 10% of the business

TREC receives an anonymous complaint that Holly, the unlicensed assistant at Texas Home and Family brokerage, has been practicing real estate. What will happen next?

nothing. anonymous complaints will not be looked into further.

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

What does the registration of an assumed business name with the secretary of state or county clerk's office in Texas show?

that the broker has the legal authority to use that name

You're helping your client Scot with the purchase of a ranch home in Texas. Scot wants to bring his cattle over, so he's asked for early possession. The transaction is scheduled to close on July 15, and Scot needs to move his cattle in on February 1. What form should you help Scot complete?

there is no form for this

What is the purpose of the Broker-Lawyer Committee?

to draft contract forms

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

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. You should ______.

verify there are commission rates in writing

Your seller client, William, had multiple offers to consider. He decided to move forward with Ryan's offer, and reject the offer from Kevin. What should your client do with the offer from Kevin?

write rejected on the letter

Someone whose license has been expired for 90 days or less may renew their license by paying TREC a fee. How much is the renewal fee in these instances?

1 1/2 times the regular renewal fee

What can an unlicensed assistant NOT do?

1. interview prospects 2. select properties for prospects to see 3. input info preapproved by the agent 4. open/unlock doors for clients 5. host an open house 6. respond to inquiries about a property 7. show properties 8. review contracts

The Recovery Trust Account should maintain a balance of at least what amount?

1.7 million

What's the maximum urban homestead size in Texas?

10 acres

how many members are there total on the ESAC board

12 7 agents 4 education members 1 public member

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 days

Jameson is interested in becoming a member of the ESAC. How many years of real estate experience must he have in order to qualify as one of the seven real estate professional members?

5 years

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.

5 years

The commission can impose up to a maximum of how much per violation of TRELA?

5,000

How long is a member of TREC's term?

6 years

Which of the following statements about the TAR Residential Lease agreement's automatic renewal policy is true?

After the lease term has expired, the lease will be automatically renewed on a month-to-month basis.

To what properties does the Texas seller's disclosure of property condition law apply?

All single-family residential properties

Identify which of these actions is a prohibited activity for a real estate licensee in Texas.

Increasing the rent and security deposit for a family with seven children

Per the Texas statute of frauds, a contract for the sale of real estate is only enforceable if it is in writing and ______.

Signed by the person to be charged with the promise/agreement

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.

Which entity was formed for the purpose of enforcing the Real Estate Dealers Act in Texas?

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 and they have the authority to revoke or suspend someone's license

Texas license holder Alan receives a notice of violation from TREC's executive director. This notice summarizes the alleged violation, includes the executive director's recommendation that an administrative penalty in the amount of $2,500 be imposed upon Alan, and tells Alan he has the right to a hearing to contest the alleged violation and/or the recommended penalty. Alan must submit the written notification for a hearing within 20 days of receiving the notice. Unfortunately, on day 22, he realizes he forgot to mail the written request for hearing. What happens now?

TREC will, by order, approve the determination and order payment of the recommended penalty, which Alan must pay.

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 ______.

past 18 months

The Recovery Trust Account exists for the benefit of whom?

exists for the public

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

A default judgment in an action commenced against non-resident broker Phil may not be granted until ______.

21st day after the date the pleading was sent

A Texas broker gives all his/her sponsored sales agents written notice of termination of sponsorship at least how many days before filing the application for inactive status?

30 days

During the earnest money demand process, how many days after receiving a request to send a release of earnest money notice to the escrow agent do the parties to the transaction have to respond?

7 days

Melanie is a licensed real estate professional who recently completed the required course hours for obtaining her broker's license. Now she just needs to pass the state exam. What is the passing grade for a real estate professional taking the broker exam?

75%

Meredith is a real estate instructor. What's the minimum score she must earn on the broker responsibility course test in order to teach the course?

80%

Stefan is an unlicensed assistant for the Ace Team at Acme Realty in Texas. Which of these activities can he perform?

calculate commission for team members placing an advertisement

Who or what entity executes a Texas deed?

grantor

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.