state exam 4 Flashcards
(30 cards)
What is the criminal penalty for engaging in the real estate brokerage business in Texas without first becoming licensed by TREC?
(a) A fine of up to $5,000 per day
(b) Triple damages
(c) A fine of not more than $4,000
(d) Imprisonment for up to 2 years
(c) A fine of not more than $4,000
The Texas Real Estate License Act was passed in:
(a) 1937
(b) 1929
(c) 1939
(d) 1949
(c) 1939
What are the requirements to become a licensed broker in TX?
(a) 900 hours of education + 360 points, in addition to 4 out of the past 5 years active real estate salesperson licensure, including at least one transaction per year.
(b) 180 hours of education + 360 points, in addition to 2 out of the past 3 years active real estate salesperson licensure including at least one transaction per year.
(c) 900 hours of education + 300 points, in addition to 4 out of the past 5 years active real estate salesperson licensure
(d) 180 hours of education + 250 points, in addition to 2 out of the past 3 years active real estate salesperson licensure
(a) 900 hours of education + 360 points, in addition to 4 out of the past 5 years active real estate salesperson licensure, including at least one transaction per year.
The designated officer of a licensed real estate corporation owns 15% of the corporation. How much E&O insurance is required by TREC?
(a) $1 million
(b) $0
(c) $5 million
(d) $10 million
(b) $0
Which of the following actions is NOT a violation of the Texas Real Estate License Act?
(a) A broker offers a guaranteed buy back of a property for a set price, if the purchaser is not happy with the investment after a two-year period of ownership
(b) A broker guarantees a buyer that, based on past performance, an investment property will appreciate over the next two years
(c) Selling real estate by lottery
(d) Placing a sign to sell or lease real property with only the verbal consent of the owner
(a) A broker offers a guaranteed buy back of a property for a set price, if the purchaser is not happy with the investment after a two-year period of ownership
How long does a broker have to deposit earnest money in an escrow account?
(a) Within 3 days of the effective date of the contract
(b) Until the close of the second business day after an offer has been delivered to the offeree
(c) Until the close of business of the second business day after the broker receives the funds
(d) There is no rule about this
(c) Until the close of business of the second business day after the broker receives the funds
Where should the Consumer Information Notice be posted?
(a) on the salesperson’s personal webpage
(b) on every single page of an email
(c) on the Broker’s business website homepage
(d) on every page of the Broker’s business website
(c) on the Broker’s business website homepage
According to the Texas Administrative Code and the canons of professional ethics, an agent who is scrupulous and meticulous in performing their duties to a client is demonstrating:
(a) integrity
(b) fidelity
(c) competency
(d) discriminatory practices
(b) fidelity
How can the TREC IABS form be delivered in an email?
(a) The IABS or a link to a completed IABS must be in the body of the email.
(b) The IABS must be in the header of the email
(c) The IABS must be in a footnote in the email
(d) The IABS must be in a readily noticeable location in an email
(a) The IABS or a link to a completed IABS must be in the body of the email.
An offer on a listed property has been presented to the seller. The buyers have added some unusual contingencies in paragraph 11. The seller tells his agent he wants to take the contract to an attorney before he signs it. What should the agent do?
(a) Get approval from the broker before giving the seller a copy of the contract
(b) Require the seller to sign a waiver before he gives the seller a copy of the contract
(c) Recommend that the seller signs the offer immediately to avoid losing the sale
(d) Provide the seller with a copy of the contract to take to his attorney before the seller signs it
(d) Provide the seller with a copy of the contract to take to his attorney before the seller signs it
A license holder is helping a buyer fill in the blanks on a contract form to make an offer on a property. What are the duties of the agent in this situation?
(a) The agent will simply provide advice and opinions to help the buyer fill in the blanks
(b) The agent will provide advice on filling in the blanks, but no opinions
(c) The agent will help the client fill in the blanks and will explain all preprinted paragraphs
(d) There are no specific guidelines for the agent in this situation
(c) The agent will help the client fill in the blanks and will explain all preprinted paragraphs
Which of the following is the responsibility of the broker?
(a) The listing advertisements of the sales agents he sponsors
(b) The continuing education of the license holders he sponsors
(c) The financial opportunities and success of the license holders he sponsors
(d) The timely renewal of licenses by the sales agents he sponsors
(a) The listing advertisements of the sales agents he sponsors
In the event of a conflict between the statutory duties of Intermediary and the common law duties of dual agency of a broker, which takes precedence?
(a) Common Law Dual Agency
(b) Statutory Intermediary
(c) Whichever the broker entered into first
(d) Whichever the broker and the parties agree to
(b) Statutory Intermediary
When must representation be disclosed and in what form?
(a) Orally or in writing at first contact
(b) In writing at first contact
(c) Using the TREC promulgated IABS at the first face-to-face contact
(d) In writing at the first face-to-face contact with a party
(a) Orally or in writing at first contact
An appointed associate under Intermediary:
(a) Can give advice and opinions to one party to the transaction
(b) Can only disclose facts
(c) Cannot give advice, but can give opinions
(d) Should refer the client to the broker for any advice
(a) Can give advice and opinions to one party to the transaction
An unlicensed assistant has accompanied an agent who is hosting an open house. The agent receives a call about an emergency with one of her children and must leave the open house. The unlicensed assistant agrees to stay at the property for the last 30 minutes of the open house and then lock up for the agent. As a result of these actions what is true?
(a) The agent can be charged with a Class A misdemeanor
(b) The broker can be charged with a Class A misdemeanor
(c) Only the agent can be fined by TREC
(d) The unlicensed assistant, the agent and the sponsoring broker can all be fined by TREC for the unauthorized activity of the assistant.
(d) The unlicensed assistant, the agent and the sponsoring broker can all be fined by TREC for the unauthorized activity of the assistant.
Disclosure of agency must be given:
(a) At first face-to-face meeting
(b) At first substantive dialogue
(c) At first contact
(d) On the TR promulgated IABS form
(b) At first substantive dialogue
A broker has negotiated a listing agreement with a seller on the phone. The broker has an appointment to secure the agreement in writing this evening after the seller gets home from work. The broker will be in the neighborhood this afternoon and would like to place his sign in the seller’s yard. The seller has agreed to this. What is true?
(a) The broker can place the sign because the seller has agreed
(b) The broker can place the sign because he is in an express agency relationship with the seller
(c) The broker cannot place the sign until the listing agreement is in writing and signed by the seller
(d) The broker has the implied authority to place the sign in the yard
(c) The broker cannot place the sign until the listing agreement is in writing and signed by the seller
A license holder has been convicted of a felony that is in no way connected to real estate. What is true?
(a) The license holder does not have to notify TREC about this conviction
(b) The license holder must notify TREC not later than the 30th day after the date of the conviction
(c) The license holder must notify TREC not later than the 21st day after the date of the conviction
(d) The license holder must notify TREC not later than the 60th day after the date of the conviction
(b) The license holder must notify TREC not later than the 30th day after the date of the conviction
TREC rules require a license holder to disclose his dual role if he is representing himself in a transaction. TREC also requires a license holder to disclose if his client is a business entity in which the broker or salesperson owns:
(a) 5% or more
(b) 10% or more
(c) more than 10%
(d) more than 15%
(c) more than 10%
A property owner has discovered mold on his property. What is true in this situation?
(a) he must hire both a mold assessor and a mold remediator to solve the problem
(b) he can remediate the mold himself
(c) if he hires a mold remediator, they must provide him with a certificate of mold remediation within 5 business days of performing the mold remediation
(d) whether he hires a remediator or does the work himself, the mold must be remediated
(b) he can remediate the mold himself
Based on the TREC Addendum for Reservation of Oil, Gas, and Other Minerals which of the following is FALSE?
(a) The seller will decide how much of the mineral estate is available to be purchased
(b) An attorney who specializes in oil and gas can determine title to the mineral estate with certainty
(c) The seller can reserve all or a part of the mineral estate
(d) This is a mandatory TREC form for use when the mineral estate is owned by the seller
(d) This is a mandatory TREC form for use when the mineral estate is owned by the seller
Which of the following could be included in Paragraph 11 of the 1-4 Family Resale Contract?
(a) Factual statements or business details
(b) The buyer will be leasing the property and moving in for 45 days before the closing date
(c) The seller is financing the sale for the buyer
(d) The seller is reserving 50% of the mineral estate
(a) Factual statements or business details
How many days does the seller have to deliver the survey to the buyer and the title company?
(a) 5 days
(b) 10 days
(c) A negotiated number of days
(d) 20 days
(c) A negotiated number of days
