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texas real estate exam prep workbook > unit 3 standards of conduct > Flashcards

unit 3 standards of conduct Flashcards

1
Q

t/f
a listing contract form approved by TREC must include a provision informing the parties to the contract that real estate commission are negotiable

A

false

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2
Q

t/f

a broker who maintains a trust must keep a record of all account deposits and withdrawals for a period of seven years

A

false

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3
Q

t/f
a real estate broker or sales agent has a special obligation to exercise integrity in the discharge of the license holder’s responsibilites

A

true

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4
Q

t/f

sales agents may receive a referral fee from a broker other than their sponsoring broker

A

false

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5
Q

t/f

license holders may have their license revoked or suspended for offering property for sale by means of a lottery

A

false

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6
Q

t/f
license holders may place a for sale sign on a vacant lot next to their own property without the consent of the property owner so that they may capture buyers

A

false

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7
Q

t/f
all parties in a transaction have the right to receive all documents that have their signature or initials on the documents

A

true

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8
Q

t/f
under the canons of professional ethics and conduct, fidelity provides that a real estate broker or sales agent, while acting for another, is a fiduciary. this demands that the primary duty of the real estate agent is to represent the interests of the client, and the brokerage’s position, in this respect, would be implied to all parties concerned in a real estate transaction

A

false

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9
Q

t/f

displaying the consumer protection notice is evidence of nondiscriminatory practice

A

false

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10
Q

t/f
property management agreements are not bound to the same requirements of other representation agreements in regards to a definite termination date

A

true

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11
Q

the canons of professional ethics and conduct includes which of the following

A

fidelity

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12
Q

all of the following are included in the canons of professional ethics and conduct except

A

reasonable skill and care

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13
Q

which canon of the canons of professional ethics and conduct provides, “a license holder, while acting as an agent, is a fiduciary and must put the principal’s interest above all others, including the agent’s. all license holders are expected to deal fairly with all parties”?

A

fidelity

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14
Q

which canon of the canons of professional ethics and conduct provides, “a license holder must be prudent and cautious to avoid all acts of misrepresentation”?

A

integrity

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15
Q

a license holder must be knowledgeable and informed and exercise judgment and skill. a license holder is considered “competent” to engage in real estate brokerage activities by completing

A

all of the prelicensing courses and passing the licensing exam

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16
Q

all the following are grounds for suspension, revocation, or denial of a license except

A

advising a buyer to get an abstract or title insurance policy

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17
Q

all the following are grounds for suspension, revocation, or denial of a license except

A

providing copies of all signed documents to the signing parties

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18
Q

all of the following are ground for suspension, revocation, or denial of a license except

A

identifying the name of the broker of record or name of the designated broker in an advertisement

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19
Q

a sales agent lists a property for sale for a period of 180 days with the provision for the listing to automatically renew at the end of 180 days for an additional 90 days. does this in any way put the sales agent at risk of having any type of disciplinary action taken against him?

A

yes. disciplinary action could be taken for failing to sate a definite termination date.

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20
Q

a sales agent tells an investor, “i guarantee that if you can negotiate a purchase price of $1,000,000 or less, you will be able to turn around and sell it for a huge profit.” does this in anyway put the sales agent at risk of having any type of disciplinary action taken against her?

A

yes. this would constitute guaranteeing or promising future profits for resale of real estate

21
Q

a broker, acting as a property manager, enters into a management agreement for a period of one year, which automatically renews indefinitely for another year until either the property owner or property manager gives the owner party 30 day’s notice. does this in any way put the broker at risk of having any type of disciplinary action taken against him?

A

no. as long as the property owner agreed to those terms, the broker has not in any way violated TRELA

22
Q

all of the following would constitute the unauthorized practice of law except

A

advising a buyer to have the abstract of title examined by an attorney or obtain title insurance

23
Q

license holders may complete all of the following forms except

A

if it was prepared by an attorney licensed in a state other than texas

24
Q

which of the following is not true regarding trust accounts?

A

sales agents are permitted to have a trust account

25
Q

which of the following is not true regarding trust accounts?

A

the broker must retain all account records for two years

26
Q

a sales agent may not pay a compensated

A

only by the sponsoring broker

27
Q

a sales agent may not pay a commission to

A

another license holder, except with the written consent of the sales agent’s principal broker

28
Q

a broker may give a gift to unlicensed persons under all of the following circumstances except

A

if it is a cash gift

29
Q

in order for a broker to file a court action to collect unpaid fees, the broker must be able to do all of the following except

A

have an oral or written agreement showing how the fees were to be paid and when they would be owed

30
Q

which of the following statements is true?

A

brokers are responsible for all professional acts and conduct of their sales agents

31
Q

brokers may not split fees with

A

sales agents sponsored by another broker

32
Q

the commission stated in a listing agreement or buyer/tenant representation agreement is determined by

A

the agreement between the parties to the listing agreement or buyer/tenant representation agreement

33
Q

under what circumstances, if any, is it legal for a broker to rebate a portion of the commission to the principal?

A

the payment is strictly a rebate and is not made for a real estate service, such as a referral

34
Q

listings adopted by TREC must include a section explaining the availability of texas coastal natural hazards information important to costal residents. how many listing are currently approved or promulgated by TREC?

A

zero

35
Q

a broker may assign a listing agreement, buyer’s representation agreement, or other personal service contract to another broker

A

with written consent of the other party

36
Q

disciplinary action may be taken against a license holder who publishes any advertisement that

A

misleads or is likely to deceive the public; tends to create a misleading impression; or fails to identify the name of the brokerage, broker of record, or designated broker

37
Q

a real estate sales agent may

A

accept compensation only from the broker under whom the sales agent is or was licensed

38
Q

a broker or sales agent who fails to give the statutory title notice to the buyer at or prior to closing

A

must forfeit the entire commission on the subject transaction but in so doing is absolved of any other liability

39
Q

a license holder who draws an earnest money contract instead of using a form promulgated for a specific purpose

A

shall have his license revoked or suspended

40
Q

which canon of the canon of professional ethics and conduct requires that the broker or sales agent employ prudence and caution of the discharge of her duties to avoid misrepresentation?

A

integrity

41
Q

a person licensed as a sales agent

A

cannot work independently, without a broker

42
Q

if a broker applies for inactive status, the broker

A

must have given 30 days’ notice to any sales agent sponsored by the broker

43
Q

the texas real estate commission may suspend or revoke a real estate license for all causes except

A

failing to specify a definite termination date in a lease

44
Q

to receive compensation for performing brokerage services in texas, all the following requirements must be met except

A

there must have been a separate earnest money escrow account established for the transaction

45
Q

it is unlawful for a real estate license holder to prepare a deed unless the license holder is

A

an attorney

46
Q

which of the following is true?

A

the commission may suspend or revoke the license of a license holder who discriminates against an owner, potential buyer, landlord, or potential tenant.

47
Q

the license act is administered by

A

the texas real estate commission

48
Q

the sum to be paid to an aggrieved party from the real estate recovery trust account is determined by

A

the court

49
Q

when a complaint against a license holder is received, an investigation is conducted by

A

the texas real estate commission

texas real estate exam prep workbook (4 decks)

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