TREC State Questions
When a designated broker applies as a "Business Entity", he/she must own a minimum of ___ % of the company
10%
If a property is subject to a forced sale for property taxes, how long does an homeowner have to regain legal title
2 years
Within______ days after the Title Company receives a copy of the contract, seller shall furnish to Buyer a Commitment for title insurance:
20
Seth and Sarah are occupying an apartment on a month-to-month lease with rent due and payable on the 15th day of each month. How much notice must they give their landlord to terminate their tenancy-at-will?
30 days unless otherwise stipulated on the rental agreement
What are the required number of MCE hours needed to renew a salesperson license after all SAE requirements have been met
4 hours of Legal Update I, 4 hours of legal update and 10 hours of related MCE hours
All are protected classes EXCEPT
A 35-year old man
The Texas Homestead Law provides for a reduction in ad valorem tax liability on a principal residence for all but which of the following individuals?
A couple who own a condominium in Corpus Christi and claim a Homestead in Colorado.
A receptionist told a broker about a client who was looking for a new house. The broker contacted the receptionist's client and sold him a home. May the broker pay the receptionist for the lead?
A gift with a value of not more than $50 may be given
A Real Estate salesperson may
Accept compensation only from the broker under whom the salesperson is or was licensed.
All the salespersons in Alan's brokerage firm work as independent contractors. Their office most likely provides them with which of the following?
Access to the MLS.
The financing paragraph will be used if financing is to be
All of the above
When presenting an offer to the seller the agent's responsibility is:
All of the above
A contract is said to be bilateral if:
All parties of the contract are bound to act
A broker has received the necessary written permission from the seller and the buyer to function as an intermediary. She has also received written permission to appoint sales persons to each of the parties. When the broker has given the proper written notice to each of the parties about who is appointed to whom, which of the following statements is true?
An appointed salesperson may give advice and opinions to one of the parties.
A licensee must use the earnest money contract forms, addenda and leases promulgated by the commission unless
An attorney prepares the forms and the property owner requires their use
The right that a power company acquires in order to lay a service line across a customer's property is called
An easement in gross
According to the Real Estate License Act, which of the following is a fair and impartial act for an intermediary
Appointing associated licensees to work with both the buyer and seller
The Real Estate Recovery Fund has a balance of $699,000 at the end of a calendar year. What is the Texas Real Estate Commission authorized or required to do?
Assess each licensee a prorate share to replenish the fund.
As an independent contractor for a real estate broker, a real estate salesperson has the authority to
Assume only responsibilities assigned by the broker.
When must a licensee present the statutory "Information About Brokerage Services" to a prospective seller or purchaser?
At the time a meeting occurs where substantive discussion about a specific property takes place.
A contract which states that one promise is given in exchange for another can best be described as a:
Bilateral contract.
A married couple is selling its homestead, owned as community property. For the deed conveying the property to be valid, who must sign it?
Both husband and wife.
An agency relationship may be terminated by all of the following EXCEPT the
Broker discovers that the market value of the property is such that he or she will not make an adequate commission
When the law does not speak to specific situations is decided by
Case law
If a licensed Real Estate broker is an agent in a transaction in which real property is sold by lottery, his or her action is
Cause for suspension or revocation of the broker's license.
What are the educational requirements for the first renewal of a sales agents license
Complete 90 hours of core courses plus four hours of Legal Update 1 and four hours of Legal Update
Each active real estate broker licensed by the Texas Real Estate Commission shall display in a prominent location in their place of business a
Consumer Information Form 1-1.
A lease is a _________ between the lessee and lessor
Contract
Reckless disregard for truth with the intent to obtain a financial advantage over another is a definition of
fraud
If a salesperson from Spencer Properties list a property and another salesperson from Spencer Properties who represents the buyer, sells the property, what is the role of the broker
intermediary
Failure on the part of the broker to advise the purchaser in writing to have an abstract examined by a lawyer of his own selection or to be furnished with or obtain a title policy:
may be cause to have your license suspended or revoked, and precludes recovery of any commission to be paid on the sale
Can a salesperson function as an intermediary?
no
Broker Dillard lists Shawn and Adam's house for $87,000. Adam has been transferred to another state, and the couple must sell their house within three months. To expedite the sale, Dillard tells a prospective buyer that the couple will accept at least $5,000 less for the house. In this situation
Dillard should not have disclosed this information to the prospective buyer, because it is not in the seller's best financial interest.
All of the following are true about discount points EXCEPT:
Discount points must be part of all contracts
If the TREC finds a licensee guilty of a violation of the TRELA, the licensee can appeal to
District court
The responsibilities of the Texas Real Estate Commission include all the following except:
regulating brokerage fees
Qualifying a tenant includes examining the applicant's
rental history
A licensee who drafts an earnest money contract and does not use a promulgated form
shall have his or her license revoked or suspended
The Texas Real Estate Commission is composed of
six brokers and three public members appointed by the governor with senate approval
Responding to or facilitating inquiries about the ancestry or familial status would put the licensee in the position of violating
Federal and state laws as well as the Texas Real Estate Commission rules.
Which of the following is NOT true under the Texas Homestead law?
Homestead rights in property may be terminated by the death of a spouse
A real estate broker acting as the special agent of the seller
Is obligated to render faithful service to the seller.
On the seller's default, what should happen to the earnest money
It should be returned to the buyer
Jennifer owns a rental property that is rented to a tenant and in which her husband has no ownership interest. Jennifer wants to sell the property. Who is required by Texas law to sign the listing agreement and the deed?
Jennifer
What law governs the relationship between a real estate licensee and a client?
Law of agency.
A standard form has been promulgated for which of the following
the sale of a single family residence
A salesperson is about to change firms. Should he contact all of his buyer clients and advise them that he will still represent them at his new firm?
No, because the buyer's agreement is with the broker
A seller received an offer yesterday and is considering how to respond to it. While the seller is still thinking about the first offer, another offer is given to the listing agent. What should the listing agent do?
Present the second offer immediately
An outside leasing agent involved in lease negotiations, coordination of the transaction, and fee collection is a
Real Estate Agent
According to the Texas Administrative Code, what is the primary duty of a real estate agent?
Represent the interest of the agents client.
An option to purchase agreement:
Requires a fee for a specified time period.
The seller says that he is going to sell you one hundred acres of land, but he is going to retain the mineral rights. What is this called?
Reservation.
When a broker discharges a salesperson, he should
Return the salesperson's license to TREC
The Texas Property Code addresses the landlord's responsibilities regarding
Security devices and smoke detectors
The statement " A broker must be employed to recover a commission for his or her services" means that the
Seller must have signed an agreement to pay a commission to the broker for selling the property
David's driveway is regularly used by his neighbor to reach a garage located on the neighbor's property. Title to the neighbor's real estate includes an easement appurtenant that gives him the driveway right. David's property is called the
Servient tenement.
Under the provisions of the typical exclusive-right-to-sell listing agreement, a real estate agent has been authorized to do all of the following EXCEPT
Sign the purchase contract
The relationship of a salesperson to their sponsoring broker is
Subject to all laws and rules of agency
It is unlawful for a person to act as a real estate salesperson unless
Such person is legally associated with a licensed Texas Real Estate broker.
What can TREC do if a salesperson is convicted of a felony
Suspend or revoke their license
A real estate license in Texas is issued by
TREC
Which one of the following is authorized by statute to promulgate forms for mandatory use by real estate brokers and sales persons?
Texas Real Estate Commission.
Who drafts and revises the promulgated sales contracts?
The Joint Broker-Lawyer Committee.
What state agency is responsible for licensing and regulating professional real estate inspectors and their apprentice inspectors?
The Texas Real Estate Commission.
Which of the following is true when an applicant for licensure has failed to pass the competency examination within the prescribed 1 year period?
The applicant must submit a new application meeting all current requirements.
If no form has been promulgated for a particular type of transaction then:
The form should be prepared by one of the principals or their attorney
What penalties would a licensee face if, while on inactive status, he or she completes a lease negotiation or sells a property?
The full penalty provisions of the act.
Fee simple estate means?
The highest form of ownership in real estate
A real estate licensee must use a TREC promulgated form, unless a form has been written and is required by the :
The owner of the property
A closing occurs on July 5. According to the terms of the agreement created by using the Texas Real Estate Commission 20-11 form, which of the following statements is true?
The seller is responsible for paying the ad valorem tax for July 5.
The primary functions of the Texas Real Estate Commission are all of the following EXCEPT
To oversee the loan process for consumers
The "Code of Ethics and Standards of Practice" cover all of duties to the following EXCEPT
To the Real Estate Commission
A legal arrangement whereby title to property is held for the benefit of a beneficiary is a
Trust
An applicant for a Texas real estate salesperson's license must be
at least 18 years old and a resident of Texas when the application is filed or a legally admitted alien
When the tenant makes a complaint to a government agency about a housing code violation, the landlord can:
do nothing
A person may not sell, lease, or transfer an easement or right-of-way used for utility, railroad or pipeline service for another for compensation unless the person:
either A or B
Nick has permission from Anthony to hike on Anthony 's land during the autumn months. Nick has a(n)
License.
The One-to-Four Residential contract states:
Licensees cannot give legal advice
Cooperating brokers may be any of the following EXCEPT
Listing broker
Which of the following is NOT a "Loan Fee" as identified in paragraph twelve of the 20-11 Texas Real Estate Commission promulgated contract?
Loan funding fee.
A broker or salesperson who fails to give the statutory title notice to the buyer at or prior to closing
May have the license suspended or revoked and cannot collect a commission on the subject sale
Under riparian rights, Bill, owner of land located along the course of a non-navigable stream
May own the land under the water to the exact center of the waterway.
An individual is exempt from being required to have a real estate license in Texas when performing which one of the following activities?
Offering an employer's property for rent
Which of the following people would need to obtain a Real Estate license if they were involved in a Real Estate activity?
One who sells lots in a mobile home park.
A licensee has the duty to disclose any existing agency relationship at the first contact with another party or the party's agent. How is that disclosure to be made?
Orally or in writing
A real estate licensee must use a TREC promulgated form unless a form has been written and is required by the
Owner of the property
A real estate licensee must use a Texas Real Estate Commission promulgated form unless a form has been written and is required by the:
Owner of the property
All of the following are violations of the Texas Real Estate Licensing Act EXCEPT
Taking a net listing
When a client tells an agent to do something illegal, what should the agent do?
Terminate the agency relationship.
When investigation files are opened by the Texas Real Estate Commission
They will stay confidential until an investigation is complete
Salesperson Betty Johnson has found the perfect house for herself. She learns that the owner may be interested in selling, so she introduces herself and is allowed to make a listing presentation. She gets the listing for her brokerage after presenting a CMA (Competitive Market Analysis) that emphasizes the lowest priced homes in the neighborhood. As a result of the CMA (Competitive Market Analysis), the seller decides on a relatively low asking price. Betty immediately presents full-price offer from her cousin, but does not reveal the relationship to the seller. The offer is accepted by the seller. A few days after the sales closes, Betty buys the property from her cousin. Betty's conduct is
Unacceptable as a violation of her fiduciary obligations to her principal.
Salesperson Jason Smith is employed by A to Z Realty, Inc. Jason learns that A to Zs broker of record missed her licensing renewal deadline. When Jason questions the broker about this, the broker laughs and says, "Don't worry. There is always a grace period to renew." Jason knows that this in not true, but decides not to say any more about it. Jason's conduct is
Unacceptable because upon expiration of his sponsoring broker's license, Jason's salesperson license is inactive.
Under which of the following situations may a property be foreclosed in Texas without judicial action?
Under the provisions of a duly executed and recorded Deed of Trust Mortgage instrument
When an agent does not fulfill the fiduciary duties and perform as promised, how may the client end the relationship?
Unilateral rescission in writing.
Texas Real Estate licensees are required to use promulgated contract and addenda forms when structuring transactions except in limited, clearly defined situations. Which of the following is NOT a Texas Real Estate Commission promulgated form?
Unimproved Commercial property.
Possession of the property is normally delivered to the buyer:
Upon the funding of the loan.
Which of the following is the best way to extend the closing date on a contract?
Use the Texas Real Estate Commission 39-7 "Amendment" and have the buyers and sellers sign.
The broker's responsibility at the closing is to
Verify and receive the brokerage fee.
When does an offer become a binding contract?
When the last party has signed and the other party has been notified.
When does TREC require a licensee to inform a seller about the market value of their home
When the listing is taken