Download Texas Real Estate Final Exam| 134 Questions| With Complete Solutions and more Exams Real Estate Management in PDF only on Docsity!
Texas Real Estate Final Exam| 134 Questions|
With Complete Solutions
Can a broker use the words "team" or "group" in the broker's licensed name or assumed business name? correct answer: Yes. TREC Rules do not prohibit a broker from using the word "team" or "group" anywhere in a broker's licensed or assumed business name. Can a name used in advertising be both an assumed business name and a team name? correct answer: No. It will be one or the other. See question regarding the difference between the types of names to figure out which one is appropriate for your situation. What is the difference between an assumed business name and a team name? correct answer: Assumed Business Name (also known as a dba) is another name for the broker's business that can be used by all sponsored sales agents and brokers associated with this broker. Another name that indicates a broker's line of business, e.g. property management or commercial, is also an assumed business name of the broker, even though it may not be available for use by all sponsored agents and associated brokers. Team Name is a name used only by a team or group of one or more sponsored sales agents or brokers associated with this broker. Team names must end in "team" or "group" and cannot contain the words "brokerage", "company", "associates" or other similar terms.
A residential service company is paying me a fee to advertise for it. Do I have to disclose that fee to my client and use a TREC form? correct answer: Yes and yes. You must also provide the client with the TREC Disclosure of Relationship with Residential Service Company form I am a sales agent. Can TREC review my advertising and advise me whether my advertising complies with TREC Rules? correct answer: No. TREC does not review a sales agent's advertising. TREC will only discuss advertising questions with a broker directly. Your sponsoring broker should review your advertising because your sponsoring broker is responsible for ensuring that your advertising complies with TREC's advertising rules, and both you and your sponsoring broker can be disciplined if your advertising violates TREC rules. Your broker must maintain, on a current basis, written policies and procedures to ensure that each sponsored sales agent complies with the Commission's advertising rules. When can an agent say that they "sold" a property in an advertisement? correct answer: Any agent who worked with the seller or the buyer in a transaction that resulted in the sale of a property may correctly state in an advertisement that they "sold" the property. If the license holder did not participate in that specific transaction, he cannot state or imply that his actions resulted in the sale of that property. An example of a misleading advertisement of this nature would be if a license holder sent out "Just Sold" postcards with her contact information and a picture of a recently sold property that she did not help to sell. She didn't state that she sold it but an average person reading the
Yes, but if you offer, recommend, or promote the use of a service provider and expect to receive compensation from the service provider when a party uses the service, the ad must disclose that you may receive the compensation. You may advertise an inspector's services, however, an inspector may not pay a fee or other valuable consideration for (1) a referral, (2) inclusion on a list of inspectors or preferred providers, or a similar arrangement; or (3) inclusion on a list of inspections contingent on other financial agreements. Also, acceptance of a fee from a service provider may violate the Federal Real Estate Settlement Procedures Act (RESPA), which prohibits certain referral fees and kickbacks. I only represent buyers. Can I advertise that I will rebate a part of my compensation to the buyer? correct answer: Yes, as long as the advertisement complies with Rule regarding any restrictions that might apply. However, a rebate to a buyer from a license holder may be subject to restrictions by the buyer's lender. You should contact your broker or private attorney to find out how you should notify and obtain the consent of the buyer's lender to address any impact the rebate may have on the determination regarding the buyer's creditworthiness. If I represent the seller, can I advertise that I will rebate part of my compensation to the buyer? correct answer: Yes, but the ad must disclose that payment of the rebate is subject to the consent of the seller and if the rebate is contingent upon certain restrictions, such as the use of a particular service provider, the ad must contain a disclosure that payment of the rebate is subject to restrictions. A sales agent must also have their sponsoring broker's authorization to offer a rebate.
I am a sales agent, Sally White. I am sponsored by a broker but want to use an assumed name for my advertisements. Can I use "Sally's Spectacular Properties" or "White Real Estate" for my business name on my advertising? correct answer: You cannot use either company name because each implies that Sally, a sales agent, is in charge. An advertisement cannot in any way imply that a sales agent is the person responsible for the operation of a real estate brokerage. A sales agent may use her name with the term "Team" or "Group," so long as the advertisement also includes the broker's name, and so long as the broker has registered the team or group name with the Commission. Are there any restrictions on the placement of a license holder's signs? correct answer: Yes. TREC may suspend or revoke a license if the license holder places a sign on a property offering it for lease or rental without the written permission of the owner or the owner's authorized agent. Also, although TREC does not regulate where a license holder places a sign, a license holder is responsible for compliance with any rules, restrictions, or regulations covering placement of a sign in their local area. Placement of signs in violation of city ordinance could be considered an act of negligence or incompetence that authorizes disciplinary action against the license holder as well as subject the license holder and possibly even their principal to enforcement actions by the appropriate authorities. Typically, sign ordinances prohibit placing a sign on a utility pole, traffic signal box, or in a road median.
team name is on a building sign, the broker's name must also be present (in at least half the size). A broker's name alone is okay. What is considered an advertisement? correct answer: An advertisement is defined as "any form of communication by or on behalf of a license holder designed to attract the public to use real estate brokerage services and includes, but is not limited to, all publications, brochures, radio or television broadcasts, all electronic media including email, text messages, social media, the Internet, business stationery, business cards, displays, signs and billboards." An advertisement does not include a communication from a license holder to the license holder's current client. Does TREC consider promotional items and sponsorships to be advertising? correct answer: Yes. If a sales agent's name or team name is on them, the broker's name must also be present (in at least half the size). A broker's name alone is okay. Does TREC consider a license holder's URL or domain name or email address to be advertising? correct answer: TREC does not consider URLs or email addresses to be advertisements in and of themselves. However, an advertisement that contains a URL or email address of a sales agent that includes a title that implies responsibility for a brokerage violates TREC. Further, TREC will consider all advertisements in their entirety and if an email address or URL] makes the advertisement misleading or deceptive, it violates the law. Can the team name used by an associated broker be the same as the assumed name used by the associated broker when he or she
is not associating with another broker? correct answer: Yes, if the assumed business name of the associated broker meets the requirements for a team name since a team name must be used when the associated broker is associating with another broker. Keep in mind that the associated broker registers the assumed business name that is used when they are not associating with another broker and the broker that they are associating with registers the team name being used when associating with that broker. Note on Exclusive Name Use: TREC does not, and is not, required to vet names submitted for registration as an assumed name or team name for exclusivity. A brokerage should decide whether it makes good sense from a liability exposure standpoint to allow an associated broker (or a sales agent who owns a business entity) to use the same name for a team name under the brokerage that they have registered as an assumed name under their own licensed business entity. Can an associated broker use his or her own assumed business name in advertising? correct answer: No. A name used in advertising by an associated broker that is not the associated broker's licensed name must be registered as a team name by the broker he or she is associated with and meet all the requirements for a team name. Can an associated broker refer to himself or herself as a "broker" in an advertisement? correct answer: No. This could "tend to mislead" the public that the associated broker is in charge of the brokerage operation. The public needs to know the broker with whom they will have a legal agreement (remember listing agreements, etc. are taken in the name of the broker, not the
registered alternate name, is considered a team name under TREC rules and must meet the team name requirements. What is proof of legal authority to use an assumed business name in Texas? correct answer: Generally, in Texas, filing an assumed business name is required to put the public on notice that you are doing business under a name other than your legal name. For most business entities, the assumed business name is filed with the Secretary of State. For a general partnership or individual broker, the assumed business name is filed with the county clerk in the county or counties where you do business. Can an individual broker use an assumed business name in advertising? correct answer: Yes, as long as the broker has the legal authority to use that name in the State of Texas and it is registered with TREC before it is used in advertisements. Does Texas have reciprocity with any other state? correct answer: No. Texas does not have reciprocity with any state. To become licensed, you must satisfy all current Texas licensing requirements. Do I need to go to Texas to be fingerprinted? correct answer: No. If you reside outside the service area of MorphoTrust you may request a Hard Card to get fingerprinted. A TREC-specific Hard Card must be obtained from TREC because it contains coding required by the DPS and FBI. MorphoTrust has details on how a Texas Non-resident can complete the fingerprinting process using a Hard Card.
Does Deferred Action for Childhood Arrivals (DACA) status qualify as a lawfully admitted alien? correct answer: No. An individual with DACA status does not meet our licensing requirements as a lawfully admitted alien. The US Citizenship and Immigration Services (USCIS) Department website specifically states that deferred prosecution does not provide lawful status to a DACA recipient. Receiving a social security number and card does not provide lawful status to a DACA recipient, it merely provides proof of the work authorization granted by USCIS. To be considered a lawfully admitted alien, you must have a green card or Permanent Resident card. I am a broker licensed in another state and would like to apply in Texas. Can I apply online? correct answer: No. To apply as an out of state broker, you must submit the paper Application for Broker License by an Individual along with requested documents and the applicable fee. My real estate application was filed with a name that is different than the name on my government issued ID. Will this prevent me from taking the exam? correct answer: Yes. The name on your government issued photo ID must match the name on your real estate license application. If the names do not match, please submit a name change request. Include your name as it appears on the application, a copy of your government-issued photo ID, and your telephone number to TREC. Does the designated broker own 10% or more of a licensed business entity if the designated broker owns 10% or more of another business entity that owns 100% of the licensed business entity? correct answer: Yes because the designated broker own
actually pays cash to an unlicensed person for a referral is subject to disciplinary action. However, a license holder may compensate an unlicensed person from a foreign country or state that does not require a license to engage in real estate brokerage activities, if the person otherwise complies with the law of the foreign country and practices there as a real estate broker. As a broker, am I the only person who can sign a check written on my trust account? correct answer: No. A broker may authorize another license holder to withdraw or transfer money from a trust account. The broker, however, remains responsible and accountable for the trust account and for the proper handling of trust money received by the broker. I loaned Broker Smith $10,000 to build his real estate office and now he won't repay me. Can you help? correct answer: No. Failure to repay a loan constitutes a breach of your private agreement with the license holder and is not a violation of TRELA or the Rules. In addition, since it is not a violation of the License Act, any judgment obtained would not be eligible for payment from the Real Estate Recovery Trust Account. Can a rental locator rebate a portion of the rental locator's fee received from the apartment complex to a prospective tenant if the tenant uses the locator's services? correct answer: Yes, but a locator will be required to first obtain the consent of the apartment complex if the locator does not represent the tenant. If a real estate broker has an escrow account, can the broker keep any interest that is earned on the money on deposit? correct answer: Not unless the person depositing the money has signed
an agreement authorizing the broker to keep the interest. Otherwise, the interest must be treated in the same manner as the deposited money. The broker is responsible for accounting for the interest and disbursing it to the person whose money is held by the broker. Accounting is more simple if the broker puts all escrow money into a non-interest bearing account Can a license holder rebate a portion of the license holder's commission to a church or other non-profit organization of the license holder's choosing or one of the principals' choosing? correct answer: Yes. This is a donation and not a rebate. A residential service company is paying me a fee to advertise for it. Do I have to disclose that fee to my client and use a TREC form? correct answer: Yes and yes. You must also provide the client with the TREC Disclosure of Relationship with Residential Service Company form Does a trust account have to have a special name? correct answer: Yes. If a broker maintains a trust account, it must be clearly identified as a trust account. Can a license holder rebate a portion of his commission to a seller? What about a buyer? correct answer: Yes. It is not a violation of TRELA or the Rules for a license holder to rebate a portion of the license holder's commission to a party to a real estate transaction. If the rebate is to a party the license holder does not represent, the license holder must obtain the consent of the party represented by the license holder before making the payment.
Can TREC obtain reimbursement of commissions paid by buyers and sellers to brokers and sales agents for compensation in real estate transactions? correct answer: No, unless a refund is ordered by TREC in conjunction with an agreement resulting from an informal settlement conference or an administrative order. However, the amount ordered may not exceed the amount the consumer actually paid to the license holder for the services subject to TREC regulation and may not require payment of other damages or estimate harm. In addition, TREC has no jurisdiction or authority to enforce collection of such amounts. Can a listing broker share a portion of the listing broker's commission with an attorney who represented the buyer in a real estate transaction? correct answer: No. A broker is prohibited from sharing fees with or otherwise compensating the attorney acting as a buyer's agent unless the attorney holds an active real estate license. I only represent buyers. Can I advertise that I will rebate a part of my compensation to the buyer? correct answer: Yes, as long as the advertisement complies with any restrictions that might apply. However, a rebate to a buyer from a license holder may be subject to restrictions by the buyer's lender. You should contact your broker or private attorney to find out how you should notify and obtain the consent of the buyer's lender to address any impact the rebate may have on the determination regarding the buyer's creditworthiness. Can a sales agent receive or pay a commission to a party in a real estate transaction? correct answer: No. A sales agent may
not accept compensation for a real estate transaction from anyone other than the broker the sales agent was associated with at the time the commission was earned and may not pay a commission to a person except through the sales agent's sponsoring broker. Can a broker share a commission or other compensation with an attorney when the attorney is a principal in the transaction? correct answer: It is not a violation of TRELA or the Rules for a license holder to rebate a portion of their compensation to a party in the transaction. If the rebate is to a party the license holder does not represent, the license holder must obtain the consent of the party the license holder represents. This must be done before making the payment. Can a broker pay all or a portion of a commission or fee to an unlicensed person? correct answer: In general, no. However, a license holder may rebate all or a portion of the fee or commission to the party being represented in the transaction, or, with consent of the party being represented, the license holder can also pay all or a portion to a party the license holder does not represent in the transaction. Can an unlicensed person own a real estate company and receive all or a portion of a commission paid to a licensed broker? correct answer: Yes, within certain limitations. The unlicensed person may share in the income earned by a real estate brokerage if the person engages in no acts for which a license is required.
inactive status. In addition, if you are a licensed sales agent, the referral fee must be paid through your sponsoring broker. Is it permitted to submit an invoice to an apartment complex falsely claiming that the locator has procured a tenant for the apartment complex? correct answer: No. The Commission can issue an order revoking the license of a locator found to have engaged in this practice. Can a license holder donate a portion of his commission to a church if one of the church members refers a client to the license holder? correct answer: Yes, as long as the church member who made the referral receives nothing that may be defined as valuable consideration from the church or the license holder. Is a locator permitted to rebate a portion of the locator's fee to the tenant? correct answer: Yes, as with all license holders, this can only be done with the prior consent of the person the locator represents. [Rule 535.147(d)] In addition, if advertising a rebate to the tenant of a portion of the license holder's commission, the ad must disclose that the rebate is subject to consent of the party the license holder represents. [Rule 535.155(d)] Can a license holder hold a gift giveaway of any prize regardless of its value as long as entry into the giveaway is not limited to only those that refer a prospect for a real estate transaction? correct answer: Nothing in TRELA or the Rules would prohibit this. However, the license holder should verify that the giveaway is not considered an illegal lottery under Sections 47.01(7) & 47.03(5) of the Texas Penal Code.
Can a license holder offer to enter an unlicensed person in a drawing to win a cruise for referring a potential lessee or buyer? correct answer: No. Since the cruise would have a value greater than $50, it is defined as valuable consideration. Although entering a name into a drawing may not have a cost associated with it, whoever won the drawing would be receiving valuable consideration. In addition, a "referral" drawing may be considered a contest defined as an illegal lottery under Sections 47.01(7) & 47.03(5) of the Texas Penal Code. Can a real estate license be revoked because a license holder files for bankruptcy? correct answer: No. A license holder's bankruptcy does not affect a pending complaint or limit disciplinary action by TREC. If the underlying conduct violates TRELA, disciplinary action can be taken against the license holder for the underlying conduct. Further, a judgment that involves conduct that violates TRELA may be eligible for payment from the Real Estate Recovery Trust Account even if the debt was discharged in bankruptcy. Can a license holder offer to give a $50 gift card to an unlicensed person for referring a potential lessee or buyer? correct answer: Although a license holder may not pay an unlicensed person valuable consideration for referring a potential lessee or buyer, gifts of merchandise with a retail value of $50 or less are not considered valuable consideration. Therefore, a $50 gift card that is only redeemable for certain merchandise (e.g. a gift card to a restaurant or department store) is not defined as valuable consideration and is permissible. A gift card from a bank (e.g. Visa or American Express), however, which can be converted to cash is not permissible. Any amount
