Texas Real Estate License Act

Question 1

a properly licensed party who serves a principal in an agency relationship; also called an agent

Answer 1

broker

Question 2

a domestic entity for foreign entity as defined by section 1.002 of the business organizations codes that is qualified to transact business in this state

Answer 2

business entity

Question 3

a person registered by TREC to sell, buy, lease or transfer easements or rights of ways for another individual in exchange for compensation

Answer 3

certificate holder

Question 4

a broker or sales agent licensed under TRELA

Answer 4

license holder

Question 5

a person who offers for consideration to locate a unit in an apartment complex for lease to a prospective tenant

Answer 5

residential real estate locator

Question 6

a person who performs real estate activities while employed by or associated with a licensed real estate broker

Answer 6

sales agent

Question 7

a license holder who represents a principal through cooperation with and consent of a broker representing the principal and who is not sponsored by or associated with the principal’s broker

Answer 7

subagent

Question 8

statute that controls the licensing of persons permitted to practice real estate brokerage in TX; protects the public against unscrupulous brokers and sales agents (part of the occupations code)

Answer 8

TRELA

Question 9

created by the Legislature in 1949.

It is a nine-member commission whose primary purpose is to carry out the provisions of the Texas Real Estate License Act.

Commission members are appointed by the governor and approved by the Senate.

Each serves for a six-year term, except the chairman of the Commission who serves at the pleasure of the governor.

Six of the members of the Commission are broker members.

They must have been brokers for at least five years before being appointed to the Commission.

The remaining three members are public members.

These individuals have nothing to do with the real estate profession in their personal lives.

They are there to represent the general public.

Answer 9

TREC

Question 10

who can suspend or revoke a TX real estate license

Answer 10

TREC

Question 11

what is the administrative penalty per day for offending licensed and unlicensed individuals

Answer 11

up to $5000 per day

Question 12

Real Estate Agents

Individuals representing buyers, sellers, landlords, or tenants for a commission or fee.

Real Estate Brokers

Individuals who sponsor agents and manage transactions, and can work independently.

Apartment Locators

People who match renters with rental properties for a fee or commission.

Property Managers

If collecting rent or managing property for others for compensation.

Leasing Agents

If negotiating lease terms, showing properties, or collecting fees on behalf of a property owner.

Referral Agents

People who refer prospects and receive any form of compensation for doing so.

Business Entity Representatives

If the entity is performing real estate activities for others, the designated broker must be licensed.

Real Estate Assistants

Only if they perform licensed activities (like showing property or negotiating contracts) — otherwise, no license is needed.

Auctioneers

Only if they are involved in negotiating real estate transactions (not just calling bids).

Anyone Advertising Real Estate Services

Answer 12

who must have a license

Question 13

housed at Texas A&M University, this center collects and compiles state relating to real estate in TX

Answer 13

texas real estate research center

Question 14

comprising of 13 members, this committee drafts and revises contract forms that are capable of being standardized to expedite real estate transactions and minimize controversy

Answer 14

broker-lawyer comittee

Question 15

a fund established by TX law to reimburse person damaged by the actions of a broker or sales agent

Answer 15

real estate recovery trust account

Question 16

Make sure consumers are notified of the contact information of the commission so that complaints may be filed.

When a complaint is filed, give a summary of the available options as well as any relevant agencies or officials to both parties.

Use a system to make sure complaints are addressed promptly.

Keep records of each complaint, with information about the parties, the subject matter of the complaint, the results of the investigation, and how it was dealt with.

Make information about the process available.

Notify the parties of the status of their complaint while the investigation is ongoing.

Answer 16

trec complaint process

Question 17

TREC will investigate any written complaints fewer than _____ years old, if evidence is provided and there is probable cause.

Answer 17

four

Question 18

does trec act on anonymous complaints

Answer 18

no

Question 19

If a license holder violates the Texas Real Estate License Act, the Commission may, upon due process,

Answer 19

revoke or suspend a license.

Question 20

criminal conduct and fraud

failure to follow trela & trec rules and guidelines

unethical conduct or dishonest behavior

negligence and incompetence

improper handling of money

discrimination

unauthorized or misleading acts

Answer 20

reasons trec would suspend a license

Question 21

TREC’s presiding officer for a case involving a consumer is required to appoint a ____________ consisting of three Commission members, to determine whether a person’s license to practice should be suspended temporarily.

Answer 21

disciplinary panel

Question 22

A sales agent license holder with no sponsoring broker has an __________ and may not receive commissions of any kind and may not practice real estate brokerage.

Answer 22

inactive real estate license

Question 23

(a) The commission may request and, if necessary, compel by subpoena:

(1) the attendance of witnesses for examination under oath; and

(2) the production for inspection and copying of records, documents, and other evidence relevant to the investigation of an alleged violation of this chapter.

(b) A subpoena may be issued throughout the state and may be served by any person designated by the commission.

(c) If a person fails to comply with a subpoena issued under this section, the commission, acting through the attorney general, may file suit to enforce the subpoena in a district court in Travis County or in the county in which a hearing conducted by the commission may be held.

(d) The court shall order compliance with the subpoena if the court finds that good cause exists to issue the subpoena.

Answer 23

subpoena authority of trec

Question 24

applicants must meet all of the following licensing requirements:

be a citizen of the United States or a lawfully admitted alien

be at least 18 years of age

be determined, by the commission, fit to engage in the profession

meet the education requirements

submit application with or without a sponsoring broker

show competency by passing the state test

submit fingerprints to TREC using the TREC form

Answer 24

requirements to obtain a tx real estate license

Question 25

60 hours in principles 30 hours in agency 30 hours in contracts 30 hours in finance 30 hours in promulgated contract forms

Answer 25

educational requirements for the sales agent total 180 hours

Question 26

The commission may solicit and accept a gift, grant, donation, or other item of value from any source to pay for any activity under this chapter, or Chapter 1102, 1103, 1104, or 1303 of this code, or Chapter 221, Property Code.

Answer 26

trec gifts

Question 27

TX legislation providing for the review of TREC and the TX Appraiser licensing & certification board by the sunset commission (can potentially abolish TREC)

Answer 27

texas sunset act

Question 28

While holding an Inactive License, a broker and a sales agent must continue

Answer 28

to pay renewal fees

Question 29

Evidence of continuing education must be submitted to TREC at least ____ business days before license expiration.

Answer 29

ten

Question 30

educational requirements for the broker are ______ Of these, 270 must be in qualifying real estate courses In addition, the broker applicant must have been actively licensed as a sales agent for four of the preceding five years.

Answer 30

900 hours

Question 31

An applicant who fails the examination _____ consecutive times may not apply for reexamination or submit a new license application unless the applicant submits evidence satisfactory to TREC that the applicant has completed additional mandatory qualifying education.

Answer 31

three

Question 32

Once licensed, the first renewal will require 90 hours of qualifying, __________ within the first two-year licensing term.

Answer 32

continuing education

Question 33

You must continue to pay your annual fees and complete your qualifying education requirements.

Answer 33

even with an inactive license

Question 34

If a person’s license has been expired for ______________________ the person may not renew the license. The person may obtain a new license by complying with the requirements and procedures for obtaining an original license.

Answer 34

six months or longer

Question 35

A person whose license has been expired for ______ or less may renew the license by paying to the commission a fee equal to 1-1/2 times the required renewal fee. If a license has been expired for more than ______ but less than six months, the person may renew the license by paying to the commission a fee equal to two times the required renewal fee.

Answer 35

90 days

Question 36

administered by TREC. The purpose of the account is to protect aggrieved individuals who suffer a monetary loss due to illegal acts of license holders.

Answer 36

recovery trust account

Question 37

$125,000 is the maximum per transaction, and $250,000 is the maximum on behalf of any one license holder.

Answer 37

recovery trust account

Question 38

maximum payment amounts for the recovery trust account are set by ____ and not by _____

Answer 38

legislature, trec

Question 39

If an individual engages in the real estate profession without first obtaining a license, he or she is guilty of a ____________, which according to the Texas Penal Code, is punishable by a fine of up to $4,000 and/or up to one year in the county jail.

Answer 39

class a misdemeanor