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Texas Real Estate Exam; STATE portion| 147
Questions | With Complete Solutions
How many members in TREC? correct answer: 9: 3 general public, 6 brokers Who appoints, confirms TREC members? correct answer: Governor appoints, senate approves How many members on the Broker-Lawyer Committee? correct answer: 13: 6 brokers, 6 lawyers, 1 public member Who appoints Broker-Lawyer committee members? correct answer: Brokers/TREC, Lawyers/Pres of State Bar, Public Member/Governor Where is the Real Estate Advisory Committee? correct answer: Texas A & M Who is on the Real Estate Advisory Committee? correct answer: 10 members: 6 brokers, 3 public members, 1 ex TREC officio How long does an individual have after an incident to file a complaint against a license holder? correct answer: 4 years If your license is revoked by TREC, you may..... correct answer: appeal to the district court
Brokerage without a license is defined as a correct answer: Class A Misdemeanor Penalties for Brokerage without a license correct answer: Fine up to $4,000; imprisonment in county jail for not more than 1 year, or both Additional penalties for brokerage without a license correct answer: Civil penalties of up to three times the amount of money received The Real Estate Recovery Account was created to correct answer: pay aggrieved persons who suffered monetary losses due to unscrupulous acts of license holders. If Real Estate Recovery Trust Account is below $1 million correct answer: Brokers and licensees pay a pro rata share of $10 upon license renewal If Real Estate Recovery Trust Account is above $3.5 million, correct answer: the excess goes into the State's General Fund When an amount if paid out of the Real Estate Recovery Trust Account on behalf of a license holder, correct answer: the license of the person can be suspended or revoked. It may never be recovered until the account is paid back with interest. Maximum amount payable by the Real Estate Recovery Trust Account correct answer: is $100,000 per license holder and $50,000 per transaction.
EXEMPT License correct answer: Administrators and executors of a will EXEMPT License correct answer: on-site apartment managers EXEMPT License correct answer: new home sales agents working for a builder EXEMPT License correct answer: cemetary lot sales agents EXEMPT License correct answer: a person selling his own property; FSBO EXEMPT License correct answer: an employee leasing/renting property for the owner EXEMPT License correct answer: corporate employees buying/selling/leasing corporate property EXEMPT License correct answer: hotel/motel personnel EXEMPT License correct answer: an attorney in fact EXEMPT License correct answer: an auctioneer who is ONLY calling a real estate auction EXEMPT License correct answer: anyone selling mobile homes (portable)
Assumed names (DBA) need to be filed with the state within how many days of starting or stopping use of the name? correct answer: 30 Can a non-resident broker earn a referral commission in Texas? correct answer: Yes Can a non-resident broker represent a buyer or seller in Texas? correct answer: No; they must work with a licensed Texas broker. Can a non-resident broker earn a commission in Texas? correct answer: Yes, but they must not negotiate in Texas Can commission to a foreign broker be in cash? correct answer: Yes, or in the form of a gift (watch, etc.) Do inspectors and appraisers have to be licensed in Texas? correct answer: yes TALCB correct answer: Texas Appraisers Licensing and Certification Board How many members in TALCB? correct answer: 9: 4 appraisers, 4 public members, 1 ex officio What if you fail license exam 3 consecutive times? correct answer: State OR national part requires 30 additional hours of education; both requires 60 hours
After first renewal, what CE is required by TREC? correct answer: 18 hour class every 2 years What does the 18-hour CE include? correct answer: 4 hours each: Legal 1 and Legal 2 If TREC does not have proof of CE at the time a license holder renews (on time renewal) correct answer: Fee for renewal will be $200; late education must be done within 60 days If TREC does not have proof of CE at the time a license holder renews (on time renewal) AND late education is more than 60 days late... correct answer: $450 penalty plus a $50 filing fee If a licensee submits CE hours but fails to renew license on time, correct answer: there is no penalty Fee for late renewal CE deferral correct answer: $ A license is considered ____________ until the late renewal has been processed by TREC correct answer: expired There is no time limit for choosing a broker correct answer: True There is no time limit for TREC to deny an application correct answer: True If TREC denies an application, they must notify the applicant in this amount of days correct answer: 30
The number of days an applicant has to appeal denial of license is correct answer: 10 If no appeal is made in the prescribed amount of time, correct answer: TREC's decision stands Sales licenses are always held by either TREC or the sponsoring broker, never by the licensee. correct answer: True An inactive license holder doesn't need to disclose that his is a licensee when purchasing real estate correct answer: False To activate an inactive license correct answer: pay $50 and do 18 hours of CE 5 Canons of Professional Ethics and Conduct correct answer: fidelity integrity competency consumer information notice 1- discriminatory practices Consumer information notice 1-2 correct answer: Notifies the public of the recovery trust account Must be displayed in a prominent place in the broker's office Grounds for suspension/revocation correct answer: guaranteeing future profits receiving commissions from someone other than your broker failing to specify a termination date in listing/buyer rep agreement
Earnest money must be deposited by correct answer: the close of business the second business day after the effective date of the contract No unlicensed person in Texas can ever correct answer: earn real estate commission A license holder may rebate a portion of his/her commission to a client correct answer: true A license holder may not rebate a portion of his/her commission to a customer correct answer: False; but they need client's permission All ads must include correct answer: the broker or company name The broker or company name correct answer: must appear on every page of a website Senate Bill 489 correct answer: Requires a license holder to give IABS form (disclose agency) at first substantive meeting Exceptions to Senate Bill 489 correct answer: Open houses, meeting with someone already repped by another licensee, lease for not more than 1 year, no sale being considered Oral or written disclosure of agency is allowed correct answer: true
Intermediary correct answer: the broker reps both buyer and seller both parties must agree in writing intermediary must not give advice to either party Texas duties to client correct answer: minimum level of service put client's interests first inform the client of material facts answer? and present all offers treat all parties honestly and fairly You may advertise another broker's listing anytime correct answer: false; you must get written permission A broker must deliver TREC correspondence to sales agents within how many calendar days of receipt? correct answer: 10 Only a __________ can earn, and sue for, a commission. correct answer: broker In order to sue for a commission, you must prove: correct answer: procuring cause of sale, written compensation agreement, licensed by TREC, provided written notice to the buyer to obtain an attorney's opinion of title or a title policy Who is responsible for all professional acts/advertising of a salesperson? correct answer: the sponsoring broker If broker terminates sponsorship, he must: correct answer: do so in writing and return license to TREC immediately
Residential inspectors must use promulgated forms correct answer: true If lender repairs exceed _______% of the price, the buyer can terminate the contract correct answer: 5 How many hours of formal training must a commission mediator have correct answer: 40 Contracts do not require the parties to agree to mediation for dispute resolution correct answer: false Mediation may not work; in arbitration, there will be a final decision correct answer: true You can sue for specific performance or seek other such remedies permitted by law if there is correct answer: breach of contract If participation in a MUD district (bonded indebtedness) is not disclosed, correct answer: Tx law allows the buyer to back out of a contract How many days does a buyer have to back out of a contract if he/she is unhappy with the title commitment/survey correct answer: the number specified in the contract Addendum for Coastal Area Property correct answer: says you may lose or gain land due to avulsion or accretion; and the state may require your house torn down
How many days does the title company have to provide the title commitment after receiving the sales contract? correct answer: 20 How many days does the buyer have to pay the option fee to the seller? correct answer: 3 If the buyer doesn't have the seller's disclosure of property condition before signing, he has _______ days to terminate the offer after receiving the disclosure correct answer: 7 Seller's disclosure is NOT required when: correct answer: foreclosure sale, tax sale, sale by guardian, executor, administrator, or sale by a builder of a new home removal of mold is called correct answer: remediation mold assessors and remediators must be correct answer: licensed testing after mold remediation is correct answer: not required property owners can correct answer: assess and remediate their own mold without a license a certificate of mold remediation must be furnished correct answer: no later than 10 days after work is complete This keeps insurers from making an underwriting decision based on previous damage/claims correct answer: a certificate of mold remediation
DTPA allows for recovery off correct answer: triple (aka treble) damages example of DPTA violation correct answer: negligent misrepresentation of material fact If you die intestate correct answer: Law of Descent/court administrator If you die testate correct answer: Title by Devise;executor/probate probate must begin within _____ years of death correct answer: 4 transfer of title at a probate hearing is final in ____days correct answer: 30 landlords must provide new locks no later than ______ days after a new tenant takes possession correct answer: 7 Foreclosure sales in Texas are on correct answer: the first Tuesday of the month majority of foreclosures in Texas are nonjudicial because of the correct answer: deed of trust property rights are recorded correct answer: in the county where it is located
recording property correct answer: gives legal notice to the world a deed, mortgage or other real estate instrument is not effective correct answer: if it is not recorded Texas Veterans Land Board correct answer: lower than prevailing market rates/borrow up to $125,00 for improvements/only 5% down on a 30-year loan Housing Assistance Program is available to correct answer: surviving spouses
