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49 Cards in this Set

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When was TREC created & why?

1949, to administer the provisions of the License Act

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.

TREC has the power to Subpoena; how can they enforce this?

TREC can file a suit with the Attorney General to enforce a subpoena.

Who is the only entity able to revoke a Real Estate License in Texas?

TREC

Who writes the promulgated contract forms for the State of Texas?

The Broker Lawyer Committee

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.

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.

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.

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.

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.

Where does TREC invest the money from the Recovery Trust Account?

TREC only invests in Treasury Bills or Notes (as done by the Employees Retirement System of Texas)

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.

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.

Why does TREC not play a part in resolving conflicts between licensees?

TREC is there to protect the consumer.

People who are exempt from Real Estate licensing cannot receive a ________.

Commission

People who have a real estate license can receive a ________.

Commission

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)

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.

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.

Define and Explain MCE.

MCE - Mandatory Continuing Education. MCE is completed after completing a licensees first renewal and has a total for 270 core hours, it consists of a total of 15 hours course

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 and 6 hours of broker responsibility training. MCE must be taken within the renewal period.

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.

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 with a additional $250 fine and $50 to reactivate (with proof of CE cooption and sign renewal "they did not engage in real estate while inactive)

Why was TRELA passed by legislation?

To protect the public against unethical licensees. TREC rules always favor the consumer and have the full force and effect of the law

Is telemarketing for listings legal in Texas?

Yes, but the person doing the calling must be licensed and they must observe the Federal "Do Not Call" list (regulates interstate and international calls) and the Sate "No Call" list (regulates interstate and intrastate calls) * a license holder can telemarked people on lists w/whom they have a past professional relationship w/

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.

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.

How long does TREC have to deny an application, and how long after do they have to notify the applicate of disapproval

no time limit for TREC to deny an application, however once TREC decides to disapprove and application, they have 30 days to notify the applicant

If a Broker has more than one place of business, what must he obtain?

Branch office license for each additional office at a cost of $50 per office. ( not necessary to have a licensed broker at each location)

If a broker dies or legally insane or license suspended, his salesperson must..

change to another broker immediately and is authorized to engage in business as soon as his fees and sponsorship forms have been mailed to TREC

an applicant who has applied with a broker and passed the test can or cannot engage is business automatically?

Cannot, until the license is recipe ed in the brokers office. An applicant without a broker cannot engage in business until broker is selected and receives the applicant's license as well (FYI: no time limit for selecting broker)

for TREC to allow inactive status, license holder must

pay renewal fee and meet SAE requirements (CE is not required for inactive status)

the time spend as inactive does or doesn't not apply toward the four year requirement for a broker's certification?

Does not count towards 4 year requirement

an inactive license holder cannot engage in the real estate business but needs a sponsoring broker during this period, True or False?

False, they cannot engage in real estate but they DONT need a sponsoring broker during this period

if application for license is approved by TREC, the applicant may make an appeal within how many days

10 days after the receipt of the notice of denial. If not appeal is made within the 10 days, the applicant gives up the right to do so and the ruling of the commission stands.

If a license holder defaults on Texas State Student Loans, TREC will refuse to renew the license? True of False




A broker using a DBA or assumed name, must..

True




file with his county clerk in every county where they have an office

Trec Consumer Information Form does what, applies to who, and must be displayed where?

-notifies the public of the recovery trust account

-applies to both real estate license holders and inspectors


-must be displayed in the broker's office

An unlicensed assistant may perform clerical duties and act as a greeter at an open house, but they must be careful to avoid what kind of activities?

Avoid activities requiring a license (both the assistant and license holder could be fined)

Licensing Requirements?

-18 yr or older


-Resident of Texas at time of application


- comply with legal residence requirement( may not be illegal alien)


-retake the exam as many times up to one year of application


-submit fingerprints to TREC before of after testing

Who needs and does not need a license?


-Attorney


-Apartment Locator


-on-site apartment managers


-new home salesman w/ 1 builder/owner


-cemetery lot salesmen


-real estate salesperson


-anyone engaging/carrying out foreclosure sales


-auctioneers calling a real estate auction


-anyone selling mobile homes


-an attorney-in-fact


-hotel/motel personnel


-corporate employees selling corporate property


-employee leasing or renting property for owner


- a person selling their own property


-administrators and executors of a will


-court appointed receivers, trustees, guardians, and sheriffs



-Attorney: Exempt *only for a fee and licensed in Texas, may not participate in commission split, need license and must be sponsored by broker and relieve commission only from that broker)


-Apartment Locator:Need License


-on-site aartment managers: Exempt


-new home salesman w/ 1 builder/owner:Exempt


-cemetery lot salesmen:Exempt


-real estate salespersonl: Need License


-anyone engaging/carrying out foreclosure sales: Exempt


-auctioneers calling a real estate auction: Exempt * need a license if involved in any part of a real estate transaction and must be sponsored by broker and relieve commission only from that broker


-anyone selling mobile homes: Exempt


-an attorney-in-fact: Exempt


-hotel/motel personnel: Exempt


-corporate employees selling corporate property: Exempt


-employee leasing or renting property for owner: Exempt


- a person selling their own property: Exempt


-administrators and executors of a will: Exempt


-court appointed receivers, trustees, guardians, and sheriffs:Exempt

Who must be licensed as a broker?

-designated office of a licensed real estate corporation or designated manager of a licensed Real Estate Limited Liability Company


-designated= broker has less than 10% inter best they need proof of min. annual limit $1mil per occurrence of E&O insurance


-agent owns 10% or more required E&O insurance is $0


-business entities that receive compensation on behalf of a license holder


-third party who controls acceptance/collection of rent form single family residence


-any business entity that engages in real estate brokerage and is required to be registered to do business in Texas with the Secretary of State

Review page 92 for reasons for suspension or revocation of a broker's or salesman's license

18 points

if a seller signed a listing agreement or a buyer signs a Buyer's Representation Agreement and they default, the broker may do what to recover lost commissions?

only a broker may sue to recover lost commissions

nonresident brokers must work through resident workers meaning...


How can commission be paid?

a broker from another state may collect a commission from a Texas broke as long as that broker does not negotiate in Texas


-commission paid by cash or gift ($1000 watch)

What can a license holder do for to an unlicensed individual who provides a referral

give a referral gift up to $50 in value (NO CASH)

Commission can never be paid to any unlicensed person in Texas, true of false?




a license holder may rebate a portion of the commission to a client within a transaction (list at lower than expected commission rate) or a customer with the clients permission (contribute to buyer's closing cost not the HUD) True of false?

both are true

a broker is responsible for all professional acts or occupational activities of the salesmen he sponsors including...




Broker must provide what to sponsored license holder?

advertising, use of promulgated forms, proper disclosure, etc.




broker must provide written standards of sponsored activities to sponsored license holder

if the broker wishes to terminate sponsorship, he must...




if a sales license holder wishes to terminate his association with the sponsoring broker, he must...

-notify the salesman in writing


-return the salesperson's license certificate to the commission immediately




-do so in writing

TREC=


TRELA=


-who/what enforces who/what?


-who/what protects the public


-what created TREC

TREC=People


TRELA=Paper (law)


-TREC enforces TRELA


-TRELA protects the public


-Legislature created TREC