Module 7 Flashcards by Caiti Jones

Texas Real Estate License Act

The statute that controls the licensing of persons permitted to practice real estate brokerage in Texas; protects the public against unscrupulous brokers and sales agents

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Certificate Holder

A person registered by TREC to sell, buy, lease, or transfer easements or right of ways for another individual in exchange for compensation

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Residential Rental Locator

A person who offers for consideration to locate a unit in an apartment complex for lease to a prospective tenant

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Texas Sunset Act

Texas legislation providing for the review of the Texas Real Estate Commission and the Texas Appraiser Licensing & Certification Board by the Sunset Commission

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Intermediary

A broker that represents both parties of the transaction

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Broker

A properly licensed party who serves a Principal in an agency relationship; also called an Agent

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Commission

Payment to a broker for services rendered, such as in the sale or purchase of Real Property; usually a percentage of the selling of the property

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Sales Agent

A person who performs real estate activities while employed by or associated with a licensed real estate broker

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Texas Real Estate Research Center

Housed at Texas A&M University, this center collects and compiles data relating to real estate in Texas

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Real Estate Recovery Trust Account

A fund established by Texas Law to reimburse persons damaged by the actions of a broker or sales agent

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Business Entity

A domestic entity or foreign entity as defined by Section 1.002 of the Business Organizations Code that is qualified to transact business in this state

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License Holder

A broker or sales agent licensed under the Texas Real Estate License Act

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Subagent

A License Holder who represents a Principal through cooperation with and consent of a Broker representing the Principal and who is not sponsored by or associated with the Principal’s Broker.

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Broker-Lawyer Committee

Comprising of 13 members, this committee drafts and revises contract forms that are capable of being standardized to expedite real estate transactions and minimize controversy

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A broker or sales agent licensed under TRELA

License holder

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A broker who is employed to negotiate a transaction between two parties to a transaction and may act as an agent of the parties

Intermediary

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Drafts and revises contract forms that are capable of being standardized to expedite real estate transactions and minimize controversy

Broker-lawyer committee

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An individual who sells or leases real estate for another in exchange for a commission

Broker

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Qualified to transact business in the state

Business Entity

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_______________ purpose is to protect the public against unscrupulous brokers and sales agents.

TREC’s

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The designated broker of a licensed real estate corporation must be

licensed as a broker.

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An out of state attorney must have a

Texas real estate license

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A broker is a person who, for compensation:

sells, exchanges or leases real estate property, lists or attempts to list real estate for sale, lease or exchange AND controls the acceptance or deposit of rent from a resident of a single-family real property unit

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A person who offers, for consideration, to locate a unit in an apartment complex for lease to a prospective tenant is known as a:

residential rental locator

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The number of hours required for a broker or sales agent license is established by the:

State Legislature

A subagent is a license holder who:

represents a principal through cooperation with and the consent of a broker representing the principal and is not sponsored by or associated with the principal’s broker

Sarah gets a job as a sales representative for Galaxy Custom Homes. She will be working in the new Galaxy model home park and will be limited to selling Galaxy homes only. Sarah will:

be exempt from the requirement to be licensed

Julie is a licensed attorney in Louisiana. She wants to be paid a commission to represent/negotiate on behalf of a purchaser of real estate in Texas. Can Julie do this?

Julie can be paid a commission to negotiate on behalf of the purchaser in Texas, but only if she obtains a Texas Real Estate License

The provision of the License Act that could potentially abolish the Texas Real Estate Commission is the:

Sunset Act

The Texas Real Estate License Act is a part of the:

Occupations Code

Mark gets a new job as a petroleum landman and will be securing leases for a variety of oil and gas companies. Before Mark can begin work, he must obtain a valid real estate license. T or F?

False

TREC may issue or revoke sales agent and broker

licenses

Broker members of the Texas Real Estate Commission must have been actively engaged in the real estate brokerage business as their primary source of income for the previous:

five years

The Commission consists of _____ members.

nine

The Commission members are appointed by the ____________________ and approved by the ______________.

Governor, Senate

_______ members of the Commission represent the public.

Three

_______ members of the Commission are brokers.

Six

The Commission has the authority to set fees for

filing an application for a broker license

The Commission may adopt rules that require license holders to use certain contract forms adopted by the Commission _________.

in all transactions, except those where a form has been prepared by the property owner or the property owner’s attorney

The Commission may solicit and accept gifts, grants, and donations from:

any source

True or False - Members of advisory committees created by the Commission are compensated on an hourly basis for their service on the committee.

F Members of advisory committees are NOT compensated

True or False - The Texas Real Estate Commission has the authority to establish standards of advertising by a license holder acting as a residential rental locator.

T The Texas Real Estate Commission has the authority to establish standards of advertising by a license holder acting as a residential rental locator

TREC may investigate a complaint that is made within _______________ from the date of the incident

4 years

The Commission shall prepare and maintain a written plan that describes how a person who has __________ may be provided reasonable access to the commission’s programs.

has a mental disability and/or a physical disability

The Commission will investigate a complaint that is:

written and signed

The Commission is required to prioritize the investigation of complaints based upon:

The Commission is required to prioritize the investigation of complaints based upon, the degree of potential harm to a consumer, potential for immediate harm to a consumer and overall severity of the allegations in the complaint

The Texas Broker-Lawyer Committee:

writes the TREC-promulgated contract forms

While holding an Inactive License, a broker and a sales agent must continue

to pay renewal fees

True or False - A residential apartment locator in Texas is not required to be a license holder.

F A residential apartment locator in Texas is not required to be a license holder

The sales agent exam is divided into two parts. The state portion has _____ questions, and the national portion has _____ questions.

30, 80

The passing grade on the sales agent exam is ___%.

70%

Sally wishes to once again become active in the real estate brokerage business. Her license has been expired for seven months. She must:

submit an application for a new license

True or False - A license holder must advise a buyer who has a written offer to have the abstract covering the real estate examined by an attorney to be provided with or obtain a title insurance policy.

T A license holder must advise a buyer who has a written offer to have the abstract covering the real estate examined by an attorney to be provided with or obtain a title insurance policy

True or False - A broker may act as intermediary between parties to a real estate transaction if the broker obtains oral consent from each party for the broker to act as intermediary.

F A broker may act as intermediary between parties to a real estate transaction if the broker obtains oral consent from each party for the broker to act as intermediary

A license holder who represents a party in a proposed transaction shall disclose orally or in writing that representation

at first contact with another party

The maximum payment out of the recovery account is ______________ per transaction and ____________ per license holder.

$50,000, $100,000

All of the following are true regarding the Real Estate Recovery Account, EXCEPT:

TREC sets the maximum payments from the fund

The Real Estate Recovery Account is:

to protect aggrieved individuals who suffer a monetary loss due to illegal acts of license holders

The Recovery Account receives deposits from TREC when TREC:

TREC receives an administrative penalty from a licensed or unlicensed individual

Material Misrepresentation & Selling/Leasing without Consent

(b-3) Failing to disclose a material misrepresentation to a potential buyer concerning a significant defect, including a latent structural defect, known to the license holder that would be a significant factor to a reasonable and prudent buyer in making a decision to purchase real property makes a material misrepresentation can revoke in the commission suspending or revoking a license. (b-19) Offering to sell or lease real property without the knowledge and consent of the owner of the real property, or their agent, can result in suspension or revocation of a license.

True or False - A broker may disclose to the buyer or tenant that the seller or landlord will accept a price less than the asking price if the broker has oral instruction to do so.

F A broker may NOT disclose to the buyer or tenant that the seller or landlord will accept a price less than the asking price if the broker has oral instruction to do so

A licensed broker may not pay a commission to or otherwise compensate a person directly or indirectly for performing an act of a broker unless the person is:

A licensed broker may not pay a commission to or otherwise compensate a person directly or indirectly for performing an act of a broker unless the person is both a real estate broker licensed in another state who does not conduct in this state any of the negotiations for which the commission or other compensation is paid and a license holder

True or False - TREC may suspend or revoke a license if a license holder induces or attempts to induce a party to a contract of sale or lease to break the contract for the purpose of substituting a new contract.

T TREC may suspend or revoke a license if a license holder induces or attempts to induce a party to a contract of sale or lease to break the contract for the purpose of substituting a new contract

When an amount is paid out of the Recovery Account on behalf of a license holder, the license will be revoked:

if repayment of the account is not received by the 31st day after TREC provides notice to the license holder

The Real Estate Commission may impose an administrative penalty of up to ________ per day.

$5000

In determining the amount of an administrative penalty, the executive director of TREC may consider all of the following except:

How long the license holder has been licensed

If an unlicensed person does an act that requires a real estate license, that person is guilty of:

a class A misdemeanor

The civil penalty of up to _____________ may be levied for practicing real estate brokerage without first obtaining a real estate license.

3 times the amount of money received

Which of the following is true regarding the imposition of an administrative penalty by TREC?

If the person does not pay the administrative fee, the administrator is authorized by the Commission to refer the matter to the attorney general for collection

Broker candidates must achieve ________% on each section to pass

Module 7 Flashcards

(70 cards)