State Prep Exam 2 Flashcards
(30 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
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
How many properties can an unlicensed investor sell in a year?
(a) 0
(b) Unlimited
(c) 3
(d) 5
(b) Unlimited
All approved 18-hour CE classes include:
(a) 8 hours of legal update
(b) 10 hours of legal update
(c) 18 hours of legal update
(d) 6 hours of legal update
(a) 8 hours of legal update
A license holder in Texas can:
(a) Prepare a contract addendum for a client per their instructions
(b) Prepare a contract for a client
(c) Prepare a will for a client
(d) Prepare a lease purchase agreement for a client
(a) Prepare a contract addendum for a client per their instructions
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 broker has received a referral from his neighbor. The referral results in a sale and the broker earns a commission on the transaction. How can he thank his unlicensed neighbor for the referral?
(a) No commission
(b) Any commission he promised
(c) A gift of $50 cash
(d) A gift of up to $100 in value, not cash
(d) A gift of up to $100 in value, not cash
A broker is using his/her own trust account. When must the broker deposit the earnest money into that account?
(a) By the close of the second calendar day after the buyer delivers the money to the broker
(b) By the close of the second business day after an offer has been delivered to the offeree
(c) By the close of business of the second business day after the broker receives the funds
(d) There is no TREC rule about this
By the close of business of the second business day after the broker receives the funds
A sales agent or broker must disclose if he is representing his:
(a) spouse or siblings only
(b) brother or sister only
(c) parent(s) or in-laws only
(d) spouse, parent(s) or child only
(d) spouse, parent(s) or child only
How can the IABS or disclosure of agency be delivered to a prospect?
(a) Orally or in writing
(b) By personal delivery on the TREC form
(c) By personal delivery on any form that includes the TREC wording
(d) As a footnote to an email
(a) Orally or in writing
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
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
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 TAR promulgated IABS form
(b) At first substantive dialogue
A broker sponsors only one associate license holder. He has a listing and a buyer client who wants to purchase that listing. What is true?
(a) The broker cannot do Intermediary and must send the buyer to another firm for representation
(b) He can do intermediary without appointments
(c) He can represent the seller and his associate can be appointed to represent the buyer
(d) He cannot do intermediary but can practice dual agency in this situation
(b) He can do intermediary without appointments
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
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
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
If a broker wants to terminate sponsorship of an agent what is required?
(a) Notify the agent in writing and return the license to TREC immediately
(b) Notify the agent orally or in writing
(c) Notify the agent in writing
(d) Notify the agent in writing and return the license to TREC within 2 business days
(a) Notify the agent in writing and return the license to TREC immediately
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
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 seller’s disclosure is not required:
(a) When the seller lives in another state
(b) On new construction that has not been occupied
(c) When a builder is selling his own residence
(d) On the sale of a tenant-occupied property that has been managed by a real estate license holder for years
(b) On new construction that has not been occupied
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
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
Which of the following TREC forms does not include the phrase, “time is of the essence”?
(a) The Short Sale Addendum
(b) The Third-Party Financing Addendum
(c) The 1-4 Family Resale Contract
(d) The Addendum for Coastal Area Property
(d) The Addendum for Coastal Area Property
