State Exam 3 Flashcards
(30 cards)
The primary purpose of TREC is to:
(a) make rules and regulations
(b) suspend or revoke licenses
(c) protect the public
(d) promulgate forms
(c) protect the public
A license holder in violation of the TRELA has received a summons from TREC that a hearing will be held regarding the possible revocation or suspension of his license. The license holder fails to respond to the summons. What will TREC do?
(a) Schedule a hearing in the county court where the license holder practices real estate
(b) Schedule a hearing at the SOAH (State Office of Administrative Hearings) in Austin
(c) Schedule a hearing in the district court serving the license holder
(d) Schedule a hearing at the main office or business address of the license holder
(b) Schedule a hearing at the SOAH (State Office of Administrative Hearings) in Austin
The total hours required at the end of your SAE renewal period consist of:
(a) 90 hours of SAE
(b) 270 qualifying hours plus 8 hours of Legal 1 & 2 (278 total)
(c) 270 hours including 6 hours of broker responsibility
(d) 18 hours including 8 hours of Legal 1 & 2
(b) 270 qualifying hours plus 8 hours of Legal 1 & 2 (278 total)
An unlicensed person owns an option to purchase real property for a $190,000. He advertises the option for sale for $20,000. This action is:
(a) only legal if he uses the service of a licensed broker
(b) illegal
(c) only legal with full disclosure of the terms of the option
(d) legal if the seller owns three options or less
(c) only legal with full disclosure of the terms of the option
How long does the buyer have to deliver the Earnest Money Deposit to an escrow agent?
(a) 2 business days from the effective date of the contract
(b) the number of days negotiated in the agreement
(c) the earnest money must be submitted at the time an offer is made
(d) within 3 days after the effective date of the contract
(d) within 3 days after the effective date of the contract
A broker who has a buyer representation agreement with a buyer decided to rebate part of the commission to the buyer to cover closing costs. The broker should:
(a) rebate a gift card to the buyer
(b) rebate $50 of the commission
(c) rebate an amount on the closing disclosure (CD)
(d) write the buyer a check after closing
(c) rebate an amount on the closing disclosure (CD)
Where should the consumer protection notice be?
(a) on every e-mail
(b) on every contract offer sent
(c) on the website in 10-point font
(d) displayed in the broker’s office
(d) displayed in the broker’s office
Where or to whom does the Earnest Money Deposit go?
(a) to the title company
(b) to an escrow account
(c) to the broker
(d) to the seller
(b) to an escrow account
What would NOT cause license revocation by TREC?
(a) A plea of nolo contendere to a felony involving fraud
(b) A second DUI conviction
(c) Selling real estate by lottery
(d) Failure to notify a buyer in writing to get an attorney’s opinion of title or a title policy on a property
(d) Failure to notify a buyer in writing to get an attorney’s opinion of title or a title policy on a property
An unlicensed assistant may do which of the following?
(a) show a home
(b) host an open house
(c) give an overview of the market to a buyer
(d) prepare a CMA
(d) prepare a CMA
What must be included in all advertisements by license holders?
(a) The license number
(b) The brokerage information
(c) The brokerage phone number
(d) The license holder’s email address
(b) The brokerage information
An unlicensed assistant prospects for leads for their agent employer. Who could be fined, and/or have a license suspended or revoked by TREC?
(a) the unlicensed assistant
(b) the unlicensed assistant and the agent
(c) the unlicensed assistant, agent and sponsoring broker
(d) the sponsoring broker only
(b) the unlicensed assistant and the agent
When a broker posts pictures of other brokers’ listings on his website, what is required?
(a) Written permission
(b) Broker’s name on every picture
(c) Broker’s name on the front page of his website only
(d) Both broker and listing broker’s name on all pictures
(a) Written permission
Who can a broker pay a referral commission to?
(a) an attorney in Texas
(b) an attorney in another state
(c) an unlicensed assistant
(d) a broker license holder in this or any other state
(d) a broker license holder in this or any other state
A buyer’s agent rebates a portion of their commission to a buyer. Who needs to approve this?
(a) No one
(b) The buyer
(c) The agent
(d) The sponsoring broker
(d) The sponsoring broker
Which is required of a broker in a minimum level of service listing agreement with a client?
(a) Present any offer to or counteroffer from the client
(b) Enter the property in the MLS
(c) Manage all showings of the property
(d) Personally inspect the property before listing it
(a) Present any offer to or counteroffer from the client
An agent switched brokers in the middle of a sale where the house is already under contract. What is true?
(a) The brokers must split the commission amicably.
(b) The agent may select the higher of splits between brokers.
(c) The first broker is the primary broker for the transaction.
(d) The sale will close under the sponsoring broker at the time of closing.
(c) The first broker is the primary broker for the transaction.
A broker has appointed associates to work with the parties to a transaction in which the broker is the Intermediary. Which of the following statements is FALSE about this?
(a) The Intermediary can answer factual questions
(b) The broker can give advice to both parties, but cannot give opinions to either
(c) The appointed associates can give advice and opinions
(d) The Intermediary has written permission from both the buyer and the seller
(b) The broker can give advice to both parties, but cannot give opinions to either
A broker has designated an associate broker to supervise his office for 60 days while the broker is on family leave. What is true?
(a) The broker does not have to notify TREC about this.
(b) The designated associate will not be required to take the broker responsibility course.
(c) The designated broker must notify TREC within 30 days of the delegation taking place.
(d) The broker must notify TREC when the delegation period ends.
(a) The broker does not have to notify TREC about this.
The option period ends:
(a) at midnight on the day mentioned in the contract
(b) at 5:00 pm on the third day after the effective date
(c) at midnight on the third day after the effective date
(d) at 5:00 pm on the day mentioned in the contract
(d) at 5:00 pm on the day mentioned in the contract
An unlicensed assistant may:
(a) host an open house
(b) unlock a door for a prospect
(c) show property
(d) accompany an inspector
(d) accompany an inspector
A buyer under contract has had an inspection performed and doesn’t want the property. What are the options to back out?
(a) The buyer can back out before closing.
(b) The buyer can back out during a due diligence or option clause in the contract.
(c) The buyer can back out within 7 days of the effective date.
(d) The buyer cannot back out of the contract.
(b) The buyer can back out during a due diligence or option clause in the contract.
Regarding the option fee in the TREC 1-4 Family Resale Contract, what is true?
(a) it must be at least $100
(b) it must be at least $200
(c) no money is required if the buyer already paid an earnest money deposit
(d) it must be an amount discussed/agreed to by the buyer and seller
(d) it must be an amount discussed/agreed to by the buyer and seller
What is an example of something that could be entered in paragraph 11?
(a) The information from a temporary (less than 90 days) seller’s lease agreement
(b) The information from any TREC addendum
(c) The information from any TR addendum
(d) The fact that the seller is a licensed real estate salesperson
(c) The information from any TR addendum
