Texas Real Estate State Exam

Front 1

When was TREC created?

Back 1

1949

Front 2

What is TREC's responsibility?

Back 2

to administer provisions of license act (TRELA)which was passed in 1939

Front 3

TREC has authority to make

Back 3

rules and regulations and can advise with reference to rules and the laws that goveren license holders.

Front 4

How many people make up TREC?

Back 4

9 commission members

3 general public
6 real estate brokers

Front 5

Who appoints TREC members?

Back 5

All are appointed by the Governor,

approved by Senate.

Front 6

TREC members served for how many years

Back 6

6 years

Front 7

What does TREC do if licensee ignores a
subpoena?

Back 7

TREC will file suit with Attorney General to enforce it

Front 8

What does TREC do if you ignore a summons?

Back 8

TREC will automatically schedule the hearing in Austin unless the license holder requests the hearing be held in his county.

Front 9

Where can you appeal a TREC license
suspension?

Back 9

Appeal the decision to the district court.

Front 10

How many members in Broker/Lawyer

Committee?

Back 10

13 total

6- brokers appointed by TREC
3- lawyers by President of Texas Bar
1- general public by governor

Front 11

What is the punishment for acting or working without a license?

Back 11

Class A misdemeanor

Fine up to no more than $4000

1 yr in county jail

Front 12

What is administrative penalty for violation of the license act?

Back 12

$5000 per day and 30 days to pay it off

Front 13

Who created Real Estate Recovery Trust Account?

Back 13

TREC

Front 14

The Real Estate Recovery Trust account was created by TREC to pay aggrieved persons due to unscrupulous acts of the license holder

Back 14

up to 3x's the amount of money lost.

Front 15

When does a licensee have to pay a $10 fee for the Trust account?

Back 15

When balance is below $1 mil and until balance reaches 1.7 mil

Front 16

State Law limits the maximum payment which is

Back 16

$100,000 per license holder and only $50,000 per transaction.

Front 17

What does TREC invest Trust money in?

Back 17

Treasury bills, notes
(same as Employees Retirement System of Tx)

Front 18

If RERTA account exceeds $3.5 million the excess goes

Back 18

into the state's General fund.

Front 19

If TREC suspends a license and paid out of trust, can you still hold a license?

Back 19

Not until all has been paid back with interest

Front 20

Texas licensed attorney can handle a real estate transaction for a client for a fee as long as

Back 20

they do not participate in broker to broker commission splits.

Front 21

Who sets the limit the Trust can pay per
licensee?

Back 21

state law

Front 22

Will TREC help resolve conflicts between
licensees?

Back 22

No

Front 23

How many classroom hours is needed to get a Sales Agent License?

Back 23

180 hours consisting of 6 required qualifying courses.

Front 24

Licensing requirements are:

Back 24

*Must be 18 yrs or older.

*Resident of Texas

*Legal residency requirements.

*Submit fingerprints to TREC before or after testing.

Front 25

Steps to obtain a Real Estate License:

Back 25

1. Meet educational requirements.

2. Submit application with/without sponsoring broker.

3. Submit required fees.

4. Pass state exam.

5. Demonstrate Honesty, Integrity & Trustworthiness.

Front 26

To obtain a brokers license:

Back 26

Yes

Front 27

Does a designated manager of a licensed Real Estate LLC need a license?

Back 27

Yes, a designated broker license

Front 28

Does an attorney-in-fact need a license?

Back 28

No

Front 29

Corporate employees selling corporate property need a license?

Back 29

No

Front 30

On-site apartment managers need a license?

Back 30

No

Front 31

How is competency determined by TREC?

Back 31

not demonstrated thru course completion but solely determined by passing exam

Front 32

Why would TREC deny a license?

Back 32

*Unable to satisfy TREC with honesty, integrity, and trustworthiness.
*Defaulted on student loans

Front 33

Brokers license educational requirements?

Back 33

*900 classroom w/ 30hrs Real Estate Brokerage and active for 2 out of 8 years.

*4 yrs of active sales license holder out of 5 years.

*3600 points-300 points per sale.

*A 6-hour broker responsiblity course if sponsoring one or more sales agents.

Front 34

What are CE requirements after 1st renewal?

Back 34

*18 hour class taken every 2 years (must include 8 hours of legal/ethic update as mandated by TREC.

Front 35

If TREC does not have proof of CE at the time the license holder renews the fee for renewal will include a

Back 35

$200 penalty. The renewal will be active for 60 days. If CE is not submitted after the 60 days the license will become automatically inactive.

Front 36

To return to active status the license holder will have to

Back 36

complete and submit CE, pay an additional $250 penalty and pay $50 to move the license back to active status.

Front 37

A license will be considered EXPIRED until the late renewal is processed by TREC. The maximum period of time is

Back 37

6 months.

Front 38

How can you get inactive license back active?

Back 38

pay $200 late fee
pay add $250 penalty
pay $20 fee with form
take education
testify "no business done"

Front 39

Is CE required for inactive license?

Back 39

No, just fees

Front 40

What is required to activate an inactive license with a broker?

Back 40

$50 fee and 18 CE hours

Front 41

Fee for more than one branch office of Broker?

Back 41

$50 per office

Front 42

How long does TREC have to notify you of disapproval of license?

Back 42

30 days

Front 43

How long do you have to appeal a license disapproval?

Back 43

10 days

Front 44

If a brokerage or business entity elects to do business under an assumed name, the assumed name should be...

Back 44

file with the Secretary of State, TREC and local county clerk.

Front 45

What is TREC Consumer Information Form?

Back 45

-Notifies public of Trust account
-Applies to licensees and inspectors
-Must be displayed in broker's office

Front 46

What is Texas Real Estate License Act?

Back 46

Passed in 1939 to protect the public against unscrupulous brokers and sales agents.

Front 47

Can a sales agent receive commissions directly from selling, leasing, negotiating, or auctioning real estate.

Back 47

NO. Commission should only come from his/her broker.

Front 48

Can a foreign broker collect a commission?

Back 48

Yes, thru a Texas broker

Front 49

A broker is responsible for all professional act or occupational activities of the sales agents he sponsors including...

Back 49

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

Front 50

Is license required to tele-market?

Back 50

Yes and observe DNC list

Front 51

Nonresident broker must work through resident brokers. A foreign broker or broker may collect a commission from a Texas broker as long as that broker does NOT negotiate in Texas. TRUE OR FALSE

Back 51

TRUE

Front 52

What bill allows a broker to act as intermediary?

Back 52

Senate Bill 489 with written from both parties with info on pay

Front 53

Who can an appointed associate give advice to?

Back 53

to only one party

Front 54

Can an intermediary broker ever give advice?

Back 54

No, only facts

Front 55

When must IABS and disclosure of representation be given?

Back 55

IABS on first face to face and
representation on first contact even oral

Front 56

When must seller disclosure be given

Back 56

before he signs an offer

Front 57

What happens if buyer isnt given seller disclosure

Back 57

he has 7 days to terminate his offer after receiving disclosure

Front 58

How long does a licensee have to enter new property into MLS?

Back 58

5 days

Front 59

What is the length of the protection period in listing agreement?

Back 59

negotiable

Front 60

Does TREC have forms for commercial or co-op?

Back 60

No

Front 61

When can you use temporary lease addendums?

Back 61

less than 90 day leases prior to closing

Front 62

Is option fee separate from other consideration?

Back 62

yes

Front 63

If contingency can't be met, does buyer get earnest money back?

Back 63

yes

Front 64

How long can a person file a complaint with TREC regardins licensee or sue for specific performance?

Back 64

4 years

Front 65

How long does broker have to deposit earnest money?

Back 65

48 hours and keep 4 year records

Front 66

If lender repairs are required how much constitutes terminating the contract?

Back 66

5% OF THE PRICE

Front 67

How much training does commission mediator have?

Back 67

40 hours

Front 68

Difference in mediator and arbitrator?

Back 68

mediator help, arbitrator decides

Front 69

What does Texas water code require?

Back 69

Disclosure for charge of turning on utilities if located in a Certified Service Area of a Utility Service Provider

Front 70

How long can buyer act on unsatisfactory survey or title?

Back 70

determined in contract

Front 71

How long does the title company have to provide title commitment after they receive sales contract?

Back 71

20 days

Front 72

What does TREC define as a reasonable amount of time?

Back 72

2 days

Front 73

Is an increase in seperate property's value community property?

Back 73

No, unless community funds or efforts made it increase

Front 74

Homestead, being automatic not able to be waived, protects against forced sales except?

Back 74

mortgage
property taxes
mechanic's and material liens
HOA dues

Front 75

How long does owner have to redeem property after homestead is foreclosed on?

Back 75

taxes 2 years
HOA dues 6 months

Front 76

Maximum size for homestead?

Back 76

Rural max 200 acres
Urban 10 acres
One per family

Front 77

Difference in Homestead exemption and protection

Back 77

Homestead exemption is just tax benefit. must occupy house on Jan 1 and can back claim for 2 years

Front 78

Education requirements for Appraisal Review Board Arbitrator?

Back 78

30 hour class and $500 max fee

Front 79

What does a seller of coastal property abutting tidally influenced water have to provide?

Back 79

Notice Regarding Coastal Area Property

Front 80

What does Notice Regarding Coastal Area Property disclose?

Back 80

Buyer may lose or gain land due to water

Front 81

What must a seller do that sells property located seaward of vegetation line?

Back 81

If structure is erected seaward of vegetation line or becomes by natural causes, structure is subject to lawsuit by Texas for removal.

Front 82

Can a buyer back out of contract if the bonded indentness of MUD district is not disclosed?

Back 82

Yes, seller must deliver and buyer must sign the MUD disclosure

Front 83

What is intestate succession?

Back 83

laws that govern how property passes intestate. Laws of Descent and Distribution

Front 84

Who is appointed to settle an estate by Laws of Descent and Distribution?

Back 84

administrator appointed by court

Front 85

If obtained property thru Laws of Descent and Distribution, you have title by?

Back 85

Title by Descent

Front 86

The Real Estate Settlement Procedure Act (RESPA) applies to what types of real estate transactions?

Back 86

Federally related mortgage loans

Front 87

How much time must the parties to a real estate closing be given to review the HUD statement?

Back 87

One day before closing

Front 88

Which of the following is considered a good balance between the supply of and demand for apartments?

Back 88

5 percent vacancy

Front 89

The recording of an instrument gives:

Back 89

Constructive notice

Front 90

In order to be valid all exclusive listings must include:

Back 90

a definite date of expiration.

Front 91

Freehold estate includes:

Back 91

life estates

Front 92

The total collection of rights which may be claimed by private ownership is best described as: