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28 Cards in this Set
- Front
- Back
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When was TREC created & why? |
1949, to administer the provisions of the License Act |
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TREC consists of whom & how long are their terms? |
3,6,9 TREC is mighty fine. 9 Total members, 3 from general public and 6 are brokers. Appointed for 6 year terms. |
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TREC has the power to Subpoena; how can they enforce this? |
TREC can file a suit with the Attorney General to enforce a subpoena. |
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Who is the only entity able to revoke a Real Estate License in Texas? |
TREC |
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Who writes the promulgated contract forms for the State of Texas? |
The Broker Lawyer Committee |
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How many members are in the Broker Lawyer Committee and who are they? |
13 members. 6 are lawyers, 6 are brokers, and 1 is a public member. |
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What are the penalties if one practices real estate without a license? |
They are guilty of a class A misdemeanor and are subject to a fine not more then $4000 and/ or imprisonment for not more than 1 year. |
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What penalties can one face for violating the License Act? |
They are subject to civil penalties of up to 3x the amount of money they received. Also, TREC may assess an administrative penalty of up to $5000 per day for violations. A person has 30 days to pay the penalty. |
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Why was the Real Estate Recovery Trust Account created? |
TREC created it to pay aggrieved persons who suffered a monetary loss due to bad acts of licensees. These people can receive up to 3x the amount of money lost. |
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If at any time during the year the Trust Account goes below X amount of dollars, TREC is allowed to assess each licensee an extra Y to renew their license or a pro- rated amount to bring the total amount in the Trust Account to Z. What dollar amounts are X,Y, and Z? |
If at any time during the year the Trust Account goes below $1,000,000, TREC is allowed to assess each licensee an extra $10.00 to renew their license or a pro- rated amount to bring the total amount in the Trust Account to $1,700,000. |
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Where does TREC invest the money from the Recovery Trust Account? |
TREC only invests in Treasury Bills or Notes, or in the Employees Retirement System of Texas. |
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If the balance of the Recovery Trust Account exceeds $X, where does the excess go? What is X? |
X = 3.5 Million Dollars. The excess goes into the states General Fund. |
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What happens to a licensee when any amount is paid out of the Recovery Trust Account on their behalf? |
The Licensee's license can be revoked or suspended. The license may not be recovered until the amount used from the Trust Account has been repaid with interest. State law limits the maximum payments for payback at $100,000 per licensee & $50,000 per transaction. |
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Why does TREC not play a part in resolving conflicts between licensees? |
TREC is there to protect the consumer. |
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People who are exempt from Real Estate licensing cannot receive a ________. |
Commission |
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People who have a real estate license can receive a ________. |
Commission |
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How can Attorneys receive money for their part in a real estate transaction? |
Texas licensed attorneys can handle real estate transactions for their clients for a legal fee but they CANNOT receive a commission. Any attorney licensed in another state besides Texas must become a licensed attorney in Texas to handle a real estate transaction for a client in Texas. (for a legal fee) |
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What are the 5 steps to obtaining a license in Texas? |
1. Meet the educational requirements (180 classroom hours of 6 core classes. 2. Submit an application to TREC 3. Submit required fees to TREC 4. Pass the State and National Exams (Proving Competency) 5. Demonstrate Integrity. |
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Define and Explain SAE. |
SAE - Salesman's Apprenticeship Education. The initial salespersons license is issued for two years. For the first renewal, one must complete 90 hours of additional core real estate course credit. |
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Define and Explain MCE. |
MCE - Mandatory Continuing Education. MCE is completed after completing a licensees first renewal and consists of a total of 270 core hours. |
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MCE must be completed every X years and consists of what? Define X. |
X = 2 years. MCE consists of a 15 hour course which must include 6 hours of legal/ethics as mandated by TREC. MCE must be taken within the renewal period. |
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What happens if a licensee fails to renew their license by the date required? |
A licensee must submit a "Late Renewal Application" along with renewal fees and proof of required education. If this is not completed, a licensee's license is considered EXPIRED. The maximum time for a late renewal with monetary penalties is 6 months. |
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What happens if an on time renewal does not include the required education? |
The licensee will be required to pay a $200 deferral fee and will have 60 days to complete the education. The license will be active for those 60 days but after that, TREC moves the license to INACTIVE status. |
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When was the Texas Real Estate Licensing Act Passed? (TRELA) |
1939 |
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Why was TRELA passed by legislation? |
To protect the public against unethical licensees. |
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Is telemarketing for listings legal in Texas? |
Yes, but the person doing the calling must be licensed and follow certain rules. |
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What rules must be followed when telemarketing listings? |
A licensee must obey the Federal "Do Not Call List" and the State "No Call" list. The Federal list regulates interstate and international calls. The Texas State's list regulates interstate and interest calls. |
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When advertising as a licensee, what are the 4 main rules? |
1. A broker who has a website must include their name or company name on each page of the website. 2. A salesperson with a website must include the name of their sponsoring broker or company on it. 3. If a licensee lists themselves in the phone book, their broker's name or company name must be present. 4. When advertising a property, the broker's name must be included in the ad. |
