State Prep Exam 1 Flashcards
(30 cards)
TREC has the power to order witnesses to appear and/or produce records of documents for its investigations and hearings. This is called subpoena power. If a license holder fails to respond to a subpoena, what can TREC do?
(a) TREC can assess an administrative penalty against the license holder for up to $4,000.
(b) TREC can immediately revoke the license of the license holder without a hearing.
(c) TREC can file suit with the Attorney General to enforce the subpoena.
(d) TREC can file charges of felony against the license holder, based on fraud.
(c) TREC can file suit with the Attorney General to enforce the subpoena.
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 State Office of Administrative Hearings (SOAH)
(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 State Office of Administrative Hearings (SOAH)
TREC has received an application for a Texas Real Estate Sales License from Mary. Mary has completed all her educational requirements and passed the state exam. At this point TREC will begin the background check. Which of the following statements is FALSE?
(a) TREC has no time limit for determining integrity
(b) TREC has 30 days to complete the background check
(c) TREC must notify Mary of a decision to disapprove her application in writing.
(d) Mary has 30 days to appeal a denial of her application
(b) TREC has 30 days to complete the background check
Marcos was a Texas licensed Real Estate Sales agent for some time. He then chose to become inactive and TREC has been holding his license in inactive status. He now wishes to activate the license. What will he have to do?
(a) Apply through a broker, pay $50 and take a 30-hour continuing education course
(b) Apply through a broker, pay $200 and take a 30-hour continuing education course
(c) Apply through a broker and take an 18-hour continuing education course if necessary
(d) Apply through a broker and take a 30-hour continuing education course if necessary
(c) Apply through a broker and take an 18-hour continuing education course if necessary
Which of the following must be posted in a public location on your Broker’s wall in their places of business?
(a) Franchise license from the Secretary of State
(b) Consumer Information Notice 1-4
(c) Policy and Procedures manual
(d) Broker’s name in at least ½ the size of the largest posted advertisements.
(b) Consumer Information Notice 1-4
Fidelity is one of the Canons of Professional Ethics within the Rules of the Commission that means which of the following?
(a) Being scrupulous and meticulous in the performance of your functions
(b) Being knowledgeable in your geographic market area
(c) Avoiding lying, omitting or misrepresentation
(d) Providing the IABS at the first substantive dialogue in a real estate transaction
(a) Being scrupulous and meticulous in the performance of your functions
Which of the following actions are grounds for suspension or revocation of your license by TREC?
(a) An agent failing to disclose a 10% ownership interest in an entity involved in the transaction
(b) Drawing up a bill of sale for personal property outside the transaction
(c) Advising a buyer to get an attorney’s opinion of title
(d) Failing to list an expiration date in an employment contract
(d) Failing to list an expiration date in an employment contract
A Texas broker may pay a commission to:
(a) A broker associate
(b) A licensed attorney in Texas
(c) An in-house employee of a principal
(d) Any unlicensed person for a referral
(a) A broker associate
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
Without proper authorization, a sales agent may accept a commission directly from:
(a) A seller
(b) A buyer
(c) His broker
(d) The title company
(c) His broker
A broker has a listed property. The owner mentions that a neighbor is interested in selling. The broker meets with the neighbor and secures a second listing. Both listings sell and the broker earns a commission on each. The broker would like to thank the owner of the first listed property for this referral. How can the broker thank the seller?
(a) He can give the seller a gift of $50.00 cash
(b) He can give the seller a gift of up to $100.00 in value, not cash
(c) He can pay the seller whatever commission amount he agreed to pay for the referral
(d) He cannot pay the seller any commission at all
(d) He cannot pay the seller any commission at all
A sales agent wished to transfer to a new broker. When may he engage in the business?
(a) When the new broker receives a license for him from TREC
(b) After a waiting period of 48 hours
(c) When the new broker submits the sponsorship forms to TREC
(d) When TREC receives his request for transfer
(c) When the new broker submits the sponsorship forms to TREC
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
With the knowledge and consent of her broker/employer, an unlicensed assistant is showing property to prospective buyers. What is true about this situation?
(a) The broker and unlicensed assistant are both guilty of a third-degree felony
(b) Both the broker and unlicensed assistant can be fined an administrative penalty of $5,000 per day
(c) Only the unlicensed assistant can be fined by TREC for this activity
(d) Only the broker can be fined by TREC for this activity
(b) Both the broker and unlicensed assistant can be fined an administrative penalty of $5,000 per day
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) In writing at the first face-to-face contact with a party
(b) Orally or in writing at first contact
(c) In writing at first contact
(d) Using the TREC promulgated IABS at the first face-to-face contact
(b) Orally or in writing at first contact
Which of the following is true and demonstrates the difference between the role of a Broker-Intermediary and the role of a Sales Agent-Appointee?
(a) The sales agent may give advice and opinions to one party in the transaction
(b) The sales agent may give advice and opinions to both parties in the transaction
(c) The broker may give advice and opinions to one party in the transaction
(d) The broker may give advice and opinions to both parties in the transaction
(a) The sales agent may give advice and opinions to one party in the transaction
What is required in order for a broker to act as an intermediary?
(a) The broker must have at least 2 associates to appoint to work with the parties in order to be an intermediary
(b) The broker must have the written permission of the seller and the buyer, including information on how the broker is to be paid
(c) The broker must have the written permission of the seller in the listing, but may have a verbal representation agreement with the buyer
(d) The broker must use the TREC promulgated forms for intermediary status and appointments
(b) The broker must have the written permission of the seller and the buyer, including information on how the broker is to be paid
A broker has signed an exclusive agreement to represent a seller. Which of the following is a requirement of the minimum level of service in this situation?
(a) The broker must put the interest of the client above all others, except the broker’s own interest.
(b) The broker must present any offer to or counteroffer from the client.
(c) The broker must refer all client questions to an attorney.
(d) The broker must advertise the client’s property in addition to placing the listing in the MLS.
(b) The broker must present any offer to or counteroffer from the client.
John has listed the property at 17 Oak St. The sellers have received and accepted an offer from the buyers. The buyers have received the survey and it shows an encroachment that the sellers did not previously disclose. The buyers are not willing to purchase the property in this condition. What action on the part of the buyers must be taken?
(a) Within 10 days, the buyers can notify the sellers that the contract is cancelled and demand the return of their earnest money
(b) The buyers can sue the sellers for breach of contract
(c) The buyers have the number of days mentioned in the Paragraph 6D to address survey problems with the sellers
(d) The buyers must submit the survey to the sellers, checking the box on the survey form, indicating their intent to cancel the transaction
(c) The buyers have the number of days mentioned in the Paragraph 6D to address survey problems with the sellers
Who is responsible for filling in the effective date of the real estate sales contract?
(a) The party accepting the final offer
(b) The agent of the party accepting the final offer
(c) The broker
(d) The seller
(c) The broker
What TREC promulgated form should be incorporated into the contract when a buyer wants to obtain possession before the closing and funding of the transaction?
(a) The Seller’s Temporary Lease Addendum
(b) The Buyer’s Temporary Lease Addendum
(c) The TREC Consumer Information Form 1-1
(d) The Addendum for the Sale of Other Property by the Buyer
(b) The Buyer’s Temporary Lease Addendum
When must the option fee be delivered?
(a) The buyer must pay his agent the option fee within 3 days of the effective date of the contract
(b) The buyer must deliver the option within 3 days after the effective date of the contract.
(c) The buyer must pay his agent the option fee within 7 days of the date of the contract
(d) The buyer must pay the seller the option fee within 7 days of the date of the contract
(b) The buyer must deliver the option within 3 days after the effective date of the contract.
John sold his waterfront property to some buyers and provided the Notice of Coastal Area Property. The house on the property was behind the vegetation line at the time of the sale. Several months after the sale, a hurricane caused a considerable amount of beach erosion, and the structure is now seaward of the vegetation line. What is true?
(a) The buyers can sue John for damages
(b) The state can force the removal of the structure
(c) The buyers can sue John and the real estate brokers involved in the transaction for damages
(d) The buyers can file a claim with the Title Insurance Company for loss of property
(b) The state can force the removal of the structure
