Texas Real Estate Exam

Front 1

In Texas if a salesperson wants to sell their personal real estate what do they need to do?

Back 1

disclose in writing that they are selling their own property, prior to a contract

Front 2

If a customer refers a buyer to a licensed salesperson in Texas, how much cash can the salesperson pay the customer?

Back 2

Can’t pay unlicensed customer

Front 3

What is MUD?

Back 3

municipal utility district

Front 4

Who signs the MUD document?

Back 4

seller & buyer

Front 5

Who delivers the MUD document?

Back 5

seller

Front 6

When does earnest money need to be deposited into the trust account?

Back 6

close of business of the second working day after broker receives trust money

Front 7

A salesperson shall not maintain a ________________. Any trust money received by a salesperson must be immediately delivered to the salesperson's sponsoring broker.

Back 7

trust account

Front 8

When must a salesperson deliver earnest money to their sponsoring broker?

Back 8

immediately

Front 9

If an out of state salesperson refers a customer, can the out of state salesperson be paid a fee?

Back 9

yes, as long as the out of state salesperson has an active real estate license

Front 10

Which form is used by a salesperson to add a contract related item to a P&S?

Back 10

39-7 Amendment to Contract

Front 11

How much money can a salesperson take directly from a buyer?

Back 11

any amount as long as it comes from the sponsoring firm

Front 12

Express material misrepresentation or Neglect Material misrepresentation is grounds to suspension of a license?

Back 12

express

Front 13

A party is not liable for a misrepresentation or a concealment of a material fact made by a license holder in a real estate transaction unless the party?

Back 13

concealed the material fact. knew about a falsity with misrepresentation. failed to disclose a matter which could adversely affect the transaction

Front 14

If an unlicensed assistant is hosting an open house for a salesperson. Who is ultimately responsible for the assistant?

Back 14

broker

Front 15

Unlicensed salesperson participating is real estate sales could receive?

Back 15

-administrative penalty

-cease and desist

-a complaint from TREC

Front 16

How many years does the broker need to keep sales contracts at the sponsoring firm?

Back 16

4 years

Front 17

Texas Property Tax Exemptions state that a person can have ____________ up to ________in the State of Texas?

Back 17

One homestead, up to 20 acres

Front 18

When a licensee is up for their first renewal, what is required to complete?

Back 18

90 hours of core real estate classes

Front 19

When a Seller requests that his home must appraise for the Selling price, and he wants it to be a condition of the sale, who must add this?

Back 19

Agent adds to the special revisions

Front 20

A type of Foreclosure not usually tied to a person's primary residence?

Back 20

ad valorem

Front 21

A 15% Broker owner of the business must maintain how much errors and omissions insurance?

Back 21

$0.00

Front 22

As a salesperson when do you advise the Buyer to have the survey pulled and get a title insurance policy?

Back 22

Within 20 days of execution of the purchase and sale contract:

Within 20 days after the Title Company receives a copy of this contract, Seller shall furnish to Buyer a commitment for title insurance

Front 23

What is the main Difference between Licensee and Intermediary Broker?

Back 23

an intermediary must act impartially and represent both parties

Front 24

What is the remedy stated as part of the standard information provided on the One to Four Family Residential Contract?

Back 24

mediation

Front 25

If the Termination clause is activated by the buyer, the earnest money is released to?

Back 25

buyer, buyer’s agent

Front 26

What is the main factor to consider when determining the appraisal value?

Back 26

highest and best use

Front 27

What is the minimum requirement for a 5% owner of a business for Errors and Omissions Insurance?

Back 27

$1,000,000

Front 28

When is it OK to pay a referral to an out-of-state referral?

Back 28

referring person is an agent/broker

Front 29

What is the responsibility of a Licensee that decides to perform real estate business by other another name?

Back 29

notify sponsoring broker - and update TREC within 30 days

Front 30

When a brokers list "Appraisals Available" on their personal website - it would be Illegal, unless?

Back 30

the Broker is a Licensed TREC Appraiser

Front 31

Purchase and Sales Agreement is signed. Agent finds the building is beyond lot lines, the agent should:

Back 31

tell the owner to notify the buyer immediately

Front 32

When a Buyer/ Seller request a copy of the Purchase and Sales Agreement, the Agent should?

Back 32

supply a copy to the requesting Buyer / Seller

Front 33

In the State of Texas Auctioneers doing real estate auctions are:

Back 33

not required to be licensed

Front 34

When MUST an existing agency relationship be disclosed to another party to a proposed transaction?

Back 34

At the time of licensee’s first contact.

Front 35

What are the agency disclosure requirements for real estate licensees?

Back 35

disclose upon first contact to another party

Front 36

Are licensees required to provide parties with written information relating to agency?

Back 36

Yes, at first substantive dialogue using TREC form Information About

Front 37

What is considered a substantive dialogue?

Back 37

A substantive dialogue can occur at a face-to-face or telephone meeting or by written communication (including email) that involves a substantive discussion relating to specific real property. If the substantive dialogue occurs at other than a face-to-face meeting, the required written statement should be sent to the party promptly

Front 38

Are there exceptions when the statutory written statement is not required?

Back 38

Yes. The statement is not required for either of the following:(1) a transaction which is a residential lease no longer than one year and no sale is being considered; or(2) a meeting with a party represented by another licensee.

Front 39

Are the disclosure and statutory information requirements applicable to commercial transactions, new home sales, farm and ranch sales or transactions other than residential sales?

Back 39

Disclosure is required for all applicable real estate transactions, except for a lease less than one year and a party already represented.

Front 40

Is the licensee required to provide the "written statement" to buyer prospects at an open house?

Back 40

No, However, at the first substantive dialogue thereafter with the buyer regarding a specific property they are.

Front 41

If a buyer's agent is required to disclose his or her status as the buyer’s agent to a listing broker when setting up a showing appointment, must the listing broker also disclose to the buyer's agent that the listing broker represents the seller?

Back 41

Yes, on the first contact with the licensee representing the buyer.

Front 42

A factory has smoke coming out filling the neighborhood with pollution, a house is downwind from the factory suffers from?

Back 42

economic functional obsolescence

Front 43

A former client (non licensed) refers a buying customer to a broker. The broker can offer the former client consideration of?

Back 43

$50 gift card

Front 44

Realtor has an advertisement in the local paper for one of his listings. The license must include:

Back 44

the name of the broker and the firm

assumed name if it is registered with the commission

phone #, email & fax #

Front 45

What can be deposited in the firm’s trust account?

Back 45

funds collected from a buyer

Front 46

During an open house, the broker allows an unlicensed person to show the house to customers. Who gets reprimanded?

Back 46

none of them

Front 47

Salesperson didn’t tell the buyer about a material fact defect on the house. He started a disagreement/argument between seller and buyer on purpose. He committed?

Back 47

Fraudulent misrepresentation

Front 48

Does a real estate trust account collect interest?

Back 48

yes, the broker can keep the interest if the person depositing the money signed an agreement authorizing the broker to keep the interest.

Front 49

As an independent contractor can your broker deduct social security from commission checks?

Back 49

no, independent contractors pay this

Front 50

Can an independent contractor ask his broker to deduct federal taxes from his commission checks?

Back 50

no

Front 51

As an independent contractor, can a broker have mandatory meetings that all independent contractor / salespersons must attend?

Back 51

licensees’ don’t have to attend

Front 52

In a rural homestead, how many acres can be claimed? KEYWORD: Rural

Back 52

rural: 200

urban: 10

Front 53

When a purchase and sales agreement is delivered to the other party, who has the final signature on it?

Back 53

seller

Front 54

While at a listing appointment the seller asked the broker not to mention that the roof is leaking. The broker should?

Back 54

ask the seller to retract the statement, or the licensee can’t list the property

Front 55

A client dies, with a will. When can the heirs begin to collect real/personal property?

Back 55

they can receive the property immediately

Front 56

How does a salesperson tell a client he is the represents another party?

Back 56

upon first contact in writing or verbally

Front 57

Can a broker pay all or a portion of a commission or fee to an unlicensed person if they were a party to the transaction?

Back 57

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.