State Prep Exam 1 Missed Questions Flashcards
(21 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)
If you fail to respond to a summons, TREC will schedule your hearing in Austin at the SOAH
You have waived your right to a hearing at a county, district court or at your office by ignoring TREC
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
TREC has not time limit to review an application or complete a 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
Licensees past their 2-yr period (experienced) must be sponsored by a broker and take 18hrs (10CE including 3 on contracts and 8 legal) to re-activate an inactive license
There is no time limit for experienced agents to be inactive, nor education required while inactive as long as you pay your renewal fee every two years
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
All brokers must post the CN1-4 in a public location in their places of business
An equal housing poster would be the only other required document to post on the wall
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
Fidelity is being faithful, observant, 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
Employment agreements must have an expiration date to be valid and enforceable
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
A broker associate is a broker sponsored by another broker. A broker in Texas can pay commission to any other broker or any sales license holder sponsored by the broker
Attorneys and in house employees must be licensed by TREC to receive a commission
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
Putting your money where your mouth is and signing a contract to purchase with a two-year close date to buy it back yourself is LEGAL
It is illegal to guarantee a future profit verbally and selling real estate by lottery and putting a sign in the yard on a verbal consent
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
The broker is responsible for keeping agents legal by properly advertising the name of their broker in all advertisements
Independent contractors are responsible for their own education, financial Oppurtunites and renewing their license
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
Representation must be disclosed orally or in writing at first contact with potential party to a transaction
There is no TREC form for this
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 written employment contract allowing intermediary, and IABS form, and an Intermediary Relationship Notice are all required if an intermediary situation is taking place
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
Paragraph 6D deals with title commitments, exceptions, and the survey as well as the number of days for the buyer to object to these items once received
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
In all caps and bolded at the end of the contract BROKER fills in the effective date; although, general agents usually do this on their behalf
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
If a buyer wants to move in early (up to 90 days) the Buyers Temporary Residential Lease should be used
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.
Within 3 days after the effective date of the contract, Buyer must deliver the earnest money and option fee to the escrow agent
If it falls on the weekend or holiday it is then extended to the next day
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
If you live on the coast, you assume the risk that your property may become part of the public beach or ocean due to natural events and the state can force removal of the structure at your own expense
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 his:
(a) Brother, sister, or parent
(b) Brother, sister or child
(c) Spouse, child or parent
(d) Relative of any kind
(c) Spouse, child or parent
Only disclosure of self, spouse, parent or child in a real estate transaction is required
Which of the following can an HOA ban?
(a) The State of Texas flag
(b) The posting of a 4’x6’ political sign
(c) A roof solar panel
(d) A religious symbol
(b) The posting of a 4’x6’ political sign
HOAs can’t ban political signs, but they can ban anything over a certain size
The statutory estate created by two married individuals that allows for shared and separate property is?
(a) Homestead
(b) Joint Tenancy
(c) Common Law Marriage
(d) Community Property
(d) Community Property
Community Property is a statutory estate in Texas that allows for jointly owned and separated property
