state exam 5 Flashcards
(30 cards)
Does TREC limit the amount of a rebate that a license holder can share with a client within a real estate transaction?
(a) Yes, the limit is $50 in value, but not cash
(b) No, there is no limit on a rebate to a client
(c) Yes, the limit is $500
(d) TREC prohibits all rebates
(b) No, there is no limit on a rebate to a client
As part of the Texas Property Code there are recording statutes. The statues say:
(a) Recording can be used to impose TREC rules before they are officially adopted
(b) Recording can be used to give constructive notice of ownership of property to future purchasers
(c) A broker must keep copies of all documents for a minimum of 4 years
(d) E-documents cannot be recorded
(b) Recording can be used to give constructive notice of ownership of property to future purchasers
TRELA imposes many rules and requirements on Texas Real Estate License holders. According to TRELA, which of the following actions by a license holder is permitted?
(a) A license holder may put a “for lease†sign on a property with verbal permission from the owner.
(b) If a client requests a copy of a document, the license holder can refuse to provide it unless the client wants to take the document to an attorney for review.
(c) A license holder can present a below market value offer to a seller.
(d) A Texas broker, with written permission from both parties, can choose to act as a dual agent rather than an Intermediary.
(c) A license holder can present a below market value offer to a seller.
A listing agent has received multiple offers on a property and has also been notified by a buyer’s agent that another offer will be delivered this evening. How should the agent handle this situation?
(a) The agent should present the offers in his possession and tell the seller he expects an additional offer this evening.
(b) He should present the offers he has and ignore the expected offer.
(c) He should present the best offer and encourage the seller to accept it.
(d) He should notify all interested buyers that he has multiple offers and ask that they submit their highest and best offers by 9pm that evening.
(a) The agent should present the offers in his possession and tell the seller he expects an additional offer this evening.
Violation of TREC rules can result in disciplinary action for the license holder. Which of the following would be a violation?
(a) The failure of an agent to read his company policies and procedures manual
(b) The failure to disclose a second DWI conviction to TREC
(c) Allowing any unlicensed employee or family member to show a listing
(d) Using paper documents rather than electronic documents
(c) Allowing any unlicensed employee or family member to show a listing
To change to a new broker, a sales license holder MUST:
(a) Notify all current clients in writing before making the change
(b) Go on inactive status with TREC before making the change
(c) Notify the current broker in writing
(d) Give the current broker 2 weeks’ notice before making the change
(c) Notify the current broker in writing
If the effective date of a contract is the Wednesday before Labor Day, the buyer MUST deliver the earnest money to the escrow agent no later than the following:
(a) Thursday
(b) Friday
(c) Monday
(d) Tuesday
(d) Tuesday
TREC has many promulgated contract forms. Which of the following properties are covered by TREC forms?
(a) Mobile homes
(b) Apartment complexes
(c) Farms and ranches
(d) Cemetery lots
(c) Farms and ranches
When must a broker deposit earnest money received from a buyer?
(a) Within 3 days of receiving the funds
(b) Any time prior to closing
(c) By the close of the second business day after receiving the funds
(d) When the buyer tells the broker to deposit the funds
(c) By the close of the second business day after receiving the funds
Which of the following actions can be taken by TREC after a license holder has been found to be in violation of TREC rules:
(a) TREC can revoke or suspend a license
(b) TREC can impose a prison sentence on a license holder
(c) TREC can require a license holder to cancel all association memberships
(d) TREC can cause a real estate license to expire before the expiration date
(a) TREC can revoke or suspend a license
What is true about the Consumer Protection Notice?
(a) It must be displayed in the broker’s office
(b) It must be included in the contract paperwork when a broker is helping a client to fill out a contract form
(c) It must be included in all emails sent by the broker
(d) It must be presented with the IABS when first meeting with a prospective client
(a) It must be displayed in the broker’s office
What can an unlicensed assistant do?
(a) Unlock a door to show property to a buyer
(b) Host an open house
(c) Answer a question about a property size or price
(d) Present an offer to a seller
(c) Answer a question about a property size or price
If an application is denied by TREC, how long must an individual wait before they can reapply?
(a) 6 months
(b) 1 year
(c) 18 months
(d) 2 years
(d) 2 years
The TVLB has several programs designed to help Texas Veterans and their families. Which of the following loans is NOT available from the TVLB?
(a) A home loan
(b) A loan to purchase commercial or investment property
(c) A loan to purchase land
(d) A home improvement loan
(b) A loan to purchase commercial or investment property
A Texas broker can pay a referral commission to someone from another state if:
(a) That person is an attorney
(b) That person is a licensed broker in their state
(c) That person has a real estate sales license from their state
(d) That person requests the fee in writing when providing the referral
(b) That person is a licensed broker in their state
A buyer’s agent has sent an email request for a Seller’s Disclosure to a listing broker. How long does the listing broker have to respond to the email?
(a) 1 day
(b) 2 days
(c) 5 days
(d) 10 days
(b) 2 days
When must a license holder advise a buyer in writing to have an abstract examined by an attorney or get a policy of title insurance?
(a) When helping the buyer to write an offer to purchase
(b) Within 20 days of the effective date of the contract
(c) When presenting the IABS to a prospective buyer client
(d) At the end of the option period
(a) When helping the buyer to write an offer to purchase
What is required for a broker in Texas to be an Intermediary with appointments?
(a) Written permission of the parties, even if the broker does not have any associated license holders
(b) Written permission of the parties and at least 2 sponsored license holders associated with the broker
(c) Written permission from either party and at least 2 sponsored license holders associated with the broker
(d) Written permission from the parties and at least 1 sponsored license holder associated with the broker
(b) Written permission of the parties and at least 2 sponsored license holders associated with the broker
A buyer wants to move into a property before the closing date. What TREC form should be added to the contract in this situation?
(a) The Seller’s Temporary Lease Addendum
(b) The Non-realty Item Addendum
(c) The Buyer’s Temporary Lease Addendum
(d) The Property Condition Addendum
(c) The Buyer’s Temporary Lease Addendum
A link to a completed TREC IABS form MUST be:
(a) In the footer of every page of the license holder’s business website
(b) In a readily noticeable location on the homepage of the license holder’s business website
(c) In the body of every business email sent by the license holder
(d) In 10-point font in every business email sent by the license holder
(b) In a readily noticeable location on the homepage of the license holder’s business website
The option fee referred to in paragraph 5 of the TREC 1-4 Family Resale Contract must be delivered:
(a) To the title company
(b) To the seller’s agent
(c) As a combined payment with the earnest money deposit
(d) As a money order or cashier’s check
(a) To the title company
What can an unlicensed assistant do for a real estate agent according to TREC rules?
(a) Prepare a CMA and present it to a prospective seller-client
(b) Meet with a buyer-client and help them to write an offer
(c) Tele market for listings
(d) Search the MLS for properties for an agent to show
(d) Search the MLS for properties for an agent to show
What is required before an applicant for a sales agent license can engage in the business of real estate?
(a) The applicant must pass the license exam and pay the license fees
(b) The applicant must receive their license from TREC
(c) The applicant must be sponsored by a broker and have an “active status†license
(d) The applicant must have completed all required courses
(c) The applicant must be sponsored by a broker and have an “active status†license
A Texas broker MUST act as an intermediary in a transaction when:
(a) The brokerage represents both the buyer and the seller
(b) If a buyer or seller requests it
(c) When the buyer in the transaction is a customer
(d) When representing a buyer in a FSBO transaction
(a) The brokerage represents both the buyer and the seller
