State Exam Prep 2 Missed Qs Flashcards
(15 cards)
What is the maximum civil 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
(b) Triple damages
Triple damages can be awarded in an civil suit
Max prison term for the crime is one year
TREC can investigate the actions of a license holder at its own motion. Under what other circumstances can TREC investigate a license holder?
(a) If they have a written complaint no more than 5 years old
(b) If they have an oral complaint no more than 4 years old
(c) If they have a written, signed complaint no more than 4 years old
(d) If they have a substantiated complaint
(c) If they have a written, signed complaint no more than 4 years old
TREC can investigate a written, signed complaint no more than 4 years old
A broker from Colorado refers a buyer to a Texas broker. The Texas broker works with the buyer who finds a property to buy. The buyer then asks the Colorado licensee to represent his interest to the Texas broker. The Colorado broker reviews all the terms and conditions set forth in the buyer’s offer and makes some suggestions that are then included in the offer. The Texas broker presents the offer. It is accepted. The transaction closes and the Texas broker earns a commission. Can he pay the Colorado broker a commission?
(a) No, he cannot pay a commission to an out of state broker
(b) No, the Colorado broker’s actions in contributing to the preparation of the offer constitute negotiating and that is not allowed
(c) No, be he can give a referral gift of up to $200.00 in value, not cash
(d) Yes
(d) Yes
A Texas broker can pay an out of state broker a commission as long as the other broker does not negotiate in Texas
How many days does a license holder have to notify TREC of their final conviction of a felony?
(a) 5 days
(b) 10 days
(c) 14 days
(d) 30 days
(d) 30 days
A license holder must notify TREC of a final conviction of a felony within 30 days
An unlicensed assistant can:
(a) Call a prospect and schedule an appointment
(b) Telemarket for listings
(c) Prepare a CMA and present it to a client
(d) Show a buyer no more than 3 listings
(a) Call a prospect and schedule an appointment
An unlicensed assistant can call a prospect and schedule an appointment
They cannot Telemarket for listings
They cannot show properties to the buyer
They can prepare a CMA but they cannot present it to the prospect
A Texas broker has signed an Exclusive Right to Sell listing agreement with a negotiated commission of 5.5%. He has a buyer-client with a written Buyer Representation Agreement. His buyer-client wants to buy the seller-client’s property. What role will this broker play in this transaction?
(a) Dual agent
(b) Intermediary
(c) Transaction facilitator
(d) Subagent
(b) Intermediary
A broker in Texas representing both buyers in a transaction MUST do so as an Intermediary
Dual agency is NOT allowed
A transaction facilitator works for both parties but does NOT represent either party
Subagent in Texas is only representing the seller and has a buyer customer
How long does a broker have to respond to inquiries from clients, agents, or other brokers?
(a) 1 week
(b) 3 days
(c) 2 days
(d) 5 days
(c) 2 days
A broker must respond to inquiries within 2 days
Which of the following statements about disclosure of representation is FALSE?
(a) Disclosure of representation is at first contact
(b) Disclosure of representation may be oral or written
(c) Disclosure of representation occurs after a client has hired the agent
(d) Disclosure of representation is at first substantive dialogue
(d) Disclosure of representation is at first substantive dialogue
Disclosure of representation is provided at first contact!
Can be provided orally or in writing
There is no TREC form
A buyer has submitted an offer to purchase a seller’s property without receiving the seller’s disclosure of property condition. How many days does the buyer have to terminate the offer once he receives the disclosure?
(a) 7
(b) 5
(c) 10
(d) Any negotiated number of days
(a) 7
A buyer who has submitted an offer without receiving the seller’s disclosure will have 7 days to terminate the offer after he receives the disclosure
According to the TREC contract form, when must the title company deliver the title commitment to the buyer?
(a) 21 days from the effective date of the contract
(b) 21 days from the receipt of the contract
(c) 20 days from the effective date of the contract
(d) 20 days from the receipt of the contract
(d) 20 days from the receipt of the contract
The title company must deliver the title commitment within 20 days from their receipt of the contract
Which of the following statements about Earnest Money Deposits and Option Fees is FALSE?
(a) Earnest money is not necessary for a contract to be valid
(b) Earnest money and option fees cannot be combined in one check from the buyer
(c) An option fee is necessary to have an option clause or an option contract
(d) An option fee must be paid up front and is never refundable
(b) Earnest money and option fees cannot be combined in one check from the buyer
Earnest money and option fee may be paid separately or combined per paragraph 5 of the contract
A broker has several offers on one of his listed properties. What is true?
(a) He is only required to present offers that he believes are in the seller’s best interest
(b) He must present all offers in whatever order he chooses
(c) He must present all offers in the order in which they were received
(d) He must present the best offer first and if the seller accepts that offer, he does not have to present any additional offers
(b) He must present all offers in whatever order he chooses
A broker can represent all offers in any order they want, they just have to present all offers
According to the TREC Addendum for Reservation of Oil, Gas, and Other Minerals, if a property owner is uncertain about the full extent of the Mineral Estate, who can determine this?
(a) An attorney
(b) A surveyor
(c) A broker who specializes in subsurface rights
(d) A landman
(a) An attorney
According to the addendum an attorney with expertise in this area is the only proper means for determining title to the mineral estate with certainty
A young married couple buys a single-family home in Texas. They close and move into the house on March 2nd. Which of the following statements is FALSE?
(a) The property is community property
(b) The owners must wait until the following year to apply for the homestead exemption
(c) They are immediately eligible for homestead protection
(d) Their broker can perform property tax consulting services for them on the property
(b) The owners must wait until the following year to apply for the homestead exemption
There is no waiting period
Homestead protection is automatic for all homeowners in TX
When are foreclosure sales held in Texas?
(a) On the 15th of the month
(b) On the first Tuesday of the month
(c) On the first Friday of the month
(d) There is no set day for foreclosures in Texas as long as the lender sends the notice 21 days before the sale.
(b) On the first Tuesday of the month
Foreclosures in Texas are held on the 1st Tuesday of the month
