Busy. Please wait.
or

show password
Forgot Password?

Don't have an account?  Sign up 
or

Username is available taken
show password

why


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
We do not share your email address with others. It is only used to allow you to reset your password. For details read our Privacy Policy and Terms of Service.


Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Don't know
Know
remaining cards
Save
0:01
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the "Know" box, the DOWN ARROW key to move the card to the "Don't know" box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

"Know" box contains:
Time elapsed:
Retries:
restart all cards
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

TX Real Estate

State Exam Real Estate

QuestionAnswer
TREC created in 1949, made to administer provisions of license Act.
When was license act enacted 1939
what was the purpose of the license act and Trec? to protect the public
What does TREC have the authority to do? Make rules and regulations. advise with reference to its rules and the laws that govern license holders. Subpoena books, records and witnesses. if a licensee fails to respond to a subpoena They can file suit with attorney general to enforce subpoena
Who make up TREC ? 9 commission members in all, 3 represent the general public and 6 are real estate brokers
Broker lawyer committee Writes the prominent gated contract forms .
How many members make up the broker lawyer committee? 13 Members, 6 brokers appointed by TREC, 6 lawyers appointed by president of the State Bar Association, and one public member appointed by the governor
True or false TREC can initiate an investigation against a licensee at its own motion ? True
How long does an individual have from the date of the contract 2 Initiate a complaint with TREC regarding a license Holder ? 4 years
How does a consumer research a complaint history About license Holder? Through TREC
Who is the only entity that has the power to revoke or issue a real estate license? TREC
TREC Does what When a license holders Has a complaint filed against them? A hearing for the revocation or suspension is held at TREC in Austin unless they receive a request hearing be held in his County
What happens to the license Holder If he fails to respond to a summons from TREC? TREC will automatically schedule the revocation slash suspension hearing in Austin
If your license is revoked by Tre C, what may you do? You may appeal the decision to the District Court
What is the penalty if one engages in business as a real estate agent without a license? This is a class A misdemeanor and subject to a fine of not more than $4000 or imprisonment For not more than one year or both
If one practices real estate without a license , where is the trial held? In County court
Person's guilty of a violation of the license act and whoever profitted there from are liable for what? Additional civil penalties of up to 3 times the amount of money received
what administrative penalty can TREC assess? Up to $5000 per day for violation of the license act by any person, either license or unlicensed.
If a Licensee Has a penalty assessed by TREC, how long do they have to pay the penalty? 30 days
Real estate Recovery trust account Fun created to pay aggrieved parties who win and uncollectible judgment from an agent slash broker.
How much can an aggrieved party collect from the real estate recovery account ? $50,000 per lawsuit and up to $100,000 per license number
How is the real estate recovery trust account funded? By taking $10 out of every applicant Or renewing license is fee. In addition, all fines levied by the TREC fund this account which is invested in safe securities like T bills and notes
What is done if the real estate recovery trust account ever falls below $1,000,000? TREC can assess all licenses $10 or a pro rata share to bring the balance up to $1.7 Million .
What is done if the real estate recovery trust account balance is above $3.5 Million on January 1st? Reduces the amount 2.5 million dollars buy flushing the access into the general fund of Texas where the Texas legislature spends it.
What happens to the license see if an amount is paid out of the real estate recovery trust account on their behalf? The amount must be paid back with interest and the a license can be suspended or revoked
How are conflicts between license holders resolved ? Does the Tre C get involved with this? No TREC does not get involved in resolving conflicts. This is usually handled at the local board of Realtors level.
If attorneys want to participate in commission split of real estate, what do they need? a real estate license
there are other besides real estate agents who can participate in commission splits with RE agents. Who are they? What do they need? attorneys, auctioneers, apartment locators, business entities such as a broker, property managers that collect rent, any business in R.E. and is require to be registered with SOS must be licensed as a broker
How does Errors and Omissions insurance work? If designated agent has< 10% interest in company then they need E&O with min annual limit of $1 million per occurrence. If agent is 10% or >then E&O can be $0.
Persons exempt from needing a R.E. license attorneys that do not partic. in comms. Court appt trustees, guardians, sheriffs, foreclosures, will admins. & exec., apt mgrs (on site)New home sales agents working for builder, cem. lot sales, person selling own prop, empl renting property for owner
What is true of attorneys in TX if they wish to participate in Real Estate Cases? They must be licensed as an attorney in the State of TX
True or false corporate employees buying or selling or renting for corporate property hotel personnel attorney in fact auctioneers calling a real estate auction anyone selling mobile homes all need to be licensed ? false
what does a broker need to do before he advertises and does business in TX? register with TREC and assumed name must be registered with SOS
non resident broker a texas licensed broker that does not have an home or office in texas - cannot represent a buyer or seller in TX but can refer and earn a referral commission
foreign broker broker from another state, may collect a commission from a texas broker as long as that broker does not negotiate in texas. A commission may be in form of cash or gift.
who licenses R.E. Inspectors? TREC-TREC's jurisdiction is limited to the buyer or the seller inspections in connection with a transaction.
TALCB Texas appraisers licensing certification board. Independent sub of TREC with it's own board.
how many members are on TALCB 9 - 4 licensed appraisers, 4 members of the public appt by governor and the executive secretary of the TX Veterans land board as an ex-officio member
how do you get a real estate license? meet educ requirements, submit app, pay fees, pass state exam, finger prints, demonstrate honesty and integrity
if you fail exam 3 times, what happens? you must take additional both, then 60 hours
what are the requirements to become a RE agent? 18 yrs old, resident of TX, legal resident, fingerprints to TREC before testing. 180 hours education
what is needed to get broker's license? 900 classroom hours, including 30 hours of real estate brokerage, must take brokerage course withing 2 years of filing for brokerage exam. 4 years active sales agent during 5 yrs preceding the license.
who is required to take the 6 hour broker responsibility course? any sponsoring broker or designated broker of a business entity who sponsors one or more sales agents at any time during the broer's current license period
what continuing education is required or RE agents? required after their first renewal. 18 hour class taken once every 2 years. Includes 4 hrs legal 1, legal 2, and 6 hour TREC Broker Responsibility if needed.
Can CE hours be carried over to the next renewal period? no
If TREC does not have proof of CE at the time of renewal, what happens? The fee will include a $200 penalty and renewal will only be active for 60 days. If CE is not submitted in 60 days, Agent will become automatically inactive.
If an agent becomes inactive due to lack of CE, what must be done to reinstate? Agent will have to complete and submit CE, pay additional $250 penalty. An on time renewal with late CE after 60 days is $450 (250+200) penalty plus $50 filing fee.
What if agent renews license late? If CE was done on time, there is no late renewal penalty. If CE is done 60 days after expiration date $200 CE deferral fee will apply.
Can an agent be a broker and agent at the same time and hold both licenses? no, TX is a 1 person, 1 license state
What is the time limit for TREC to deny an application for RE agent or broker? no time limit, but if they decide to disapprove an app they must notify applicant within 30 days.
If an app is turned down by TREC, what can applicant do? make appeal within 10 days after receipt of notice of denial. If no appeal is made, applicant gives up right to do so and the ruling stands.
What happens if applicant is late on TX student loans? TREC will refuse to renew license of agent
if an applicant applies without a broker and passes the test, what is the time limit for choosing a broker? none
Can an agent or broker go inactive? yes, TREC will hold the license. Agent must still pay renewals and meet SAE requirements.
Is CE required for Inactive status? No, Once past SAE requirements, CE is not required
Does time on inactive status count toward becoming a broker ((4 years requirement)? No
Can an inactive license holder engage in RE Business? no
Does an inactive license holder need a sponsoring broker? no
What is needed to reactivate a RE license? apply through broker, pay $50 and complete 18 hours of CE if necessary
5 canons of professional ethics and conduct Fidelity, integrity, competency, consumer information notice 1-2, discriminatory practices
fidelity agent is a fiduciary to his client
integrity agent will avoid misrepresentation by commission or omisssion
competency agent will be knowledgeable, informed and educated in performing his work. Must be both scrupulous and meticulous in performance of occupational activities.
consumer info notice 1-2 notifies the public of the recovery trust account. Applies to both agents and inspectors. Must be displayed in a prominent place in broker's office
discriminatory practices no license holder shall inquire about, respond to or facilitate inquires about or make disclosure indicating any discriminatory preferences or limitations.
What are grounds for suspension and Revocation ? guar future profits, get comm. from others than broker, no end date in buyers rep, RE by lottery, legal advice, not advising in writing to get attorney or title policy, placing sign w/o permission, dual agency, not fully disclosing, puffing, comingling
what can happen if you commingle funds or steer clients? your license can be suspended or revoked.
What can happen if you remove funds from escrow/trust account before transaction has been consummated (closing)? your license can be suspended or revoked
What can happen if you enter a plea of guilty or nolo contendere or convicted of a felony or or a criminal offense involving fraud? your license can be suspended or revoked
If an agent fails to honor within a reasonable time a check issued to TREC after TREC has sent, by certified mail, a request for payment to the license holder's last know n business address? your license can be suspended or revoked
What happens if an agent fails to notify the commission not later than the 30th day after the date of a final conviction or the entry of a plea of guilt or NLC to a felony? your license can be suspended or revoked
How long must a licensee wait if their license is revoked by TREC? 2 yrs to obtain a new license
3 entities that may accept earnest money? title co, attorneys and brokers.
when must earnest money be delivered? by the close of the 3rd day after the effective date of the contract. may be extended if 3rd day falls on Sat, Sun or holiday.
if broker is using his own escrow account, when must the funds be deposited? by close of the second business day after the effective date of the contract/lease
to?who can a broker pay commission yp to any agent he sponsors or to another broker
how can a license holder share or rebate a portion of he commission with to a customer? with the client's permission
how much of a give can a license holder give to unlicensed individual who provides a referral? $50 in value not cash, if gift card, it cannot be converted to cash
What must be contained in ads for Real Estate? Broker's information or company name
The ideal way to comply with TREC rules about IABS is? post a link to completely filled out IABS form labeled Texas Real Estate Commission Information about Brokerage Service on you business website homepage, in a readily noticeable place in at least 10 PT font.
what font is needed for the IABS (information about brokerage services)? if it says "Texas Real Estate Commission Information about Brokerage Service or Texas Real estate Commission consumer protection notice"? 10 or better
If you use a link on your website stating: TREC Information about brokerage Services or TREC Consumer Protection Notice, what font point must be used? 12
when must the IABS be given out to consumers? at the time of your first substantial communication about real estate.
how can a IABS be delivered? by personal delivery, mail or email
a broker's website must include what? broker or company name on every page of the website
t or f license numbers, phone numbers and em ail addresses are not required in any advertisement true
Senate bill 489 requires agent to give information about brokerage services (disclosure of agency) to a prospect at the first substantive dialoge. Face to face, TREC Info about IABS form is used to make this disclosure - This must be in writing
When do you not have to make agency disclosure using IABS TREC form? 1. leases < 1 yr and no sale is being considered 2. Open houses 3. Already represented
Is the IABS presented before or after you are hired? Before, so before you have a client
Does disclosure according to Senate Bill 489 have to be in writing when you are disclosing that your are representing a client to another party or license holder? Oral or written is allowed
what senate bill allows the broker to be both seller and buyer rep? Senate bill 489
What must happen to work as an intermediary and rep both buyer and seller? must have written permission of both parties including how ther broker will be paid.
Who in a brokerage can be and intermediary? Only the broker
What takes precedence, Statutory Intermediary or Common law dual agency? Statutory Intermediary
Intermediary appointed associate appointed by the broker when broker is working with both the buyer and seller. Associate may give advice and opinions to one part they are working with in transaction
When broker is working as an intermediary, who can they give advice to? Neither the buyer or the seller. He may only disclose facts about the property.
Minimum service a broker gives a client Clients interests first, inform client about material information on the property, answer questions and present offer/counteroffer, treat all honestly and fairly
when can a license holder advertise another broker's listing? with written permission from that broker
When can a broker refer clients to a residential service company with whom they have professional connection? As long as broker uses TREC from RSC-2 to disclose that relationship. Fees must be appropriate
what is the time frame that a broker or delegated supervisor has to respond to clients, agents or other brokers? 2 days
Time frame, that a broker or delegated supervisor has to deliver TREC correspondence to their agents? 3 days
Who can sue for a commission? Only a broker
If a broker sues for a commission, what must he/she be able to prove? 1. He was procuring cause of sale 2. has written compensation agreement 3. licensed with TREC 4. He provided written notice to buyer to obtain an attorney's opinion of title, title policy on property
Brokerage policy and procedures manual agent are geographically competent in the market area being served, and will ensure training and coaching for new agents when they undertake new tasks.
What does a broker do if he wants to terminate sponsorship with an agent? He must do so in writing and return the sales agent's license certificate to the commission immediately.
How does a sales agent terminate his association with sponsoring broker? In writing
If a supervisor in a brokerage will be in a supervisor position for more than 3 months, what must a broker do? designate as a delegated supervisor with TREC. (this is anyone who leads, supervises, or directs a team) The person will be required to take the 6 hour broker responsibility course at each license renewal.
When can a new applicant engage in business? after he has found a broker and the broker has received his license at their brokerage office.
what happens if an agent is working for a broker who dies or becomes suspended, or legally insane? change to another brokerage immediately - he may begin to engage in business with new broker as soon as that new broker has mailed his fees and sponsorship forms.
If a broker has more than 1 office, what is the fee? Broker must license each office and pay additional $50 fee per office
What things can an unlicensed assistant do? go with agent to showings, set appointments, place signs on property, accompany an inspector, place advertisements, assist with admin on financing, assist buyer with getting forms for loan, train and motivate agents, manage office, clerical duties, CMA,
What can an unlicensed assistant not do? host open house, show property, unlock door for prospect, telemarket for listings, Engage in any activity requiring a lecense
What are the exceptions to using standard contract forms from TREC? 1. Attorney prepared 2. owner prepared 3. governmental agency specified or their lawyers
What ford does TREC have for commercial, co-op or mobile homes transactions? No form from TREC.
How do forms made for TREC? Broker Lawyer committee writes the forms and TREC promulgates them.
Do back-up offers need to be presented to the owner? yes, this is a must
How does a back up offer become effective? The previous contract must be terminated and the backup buyer must pay the option fee, name any option period, and deposit earnest money to escrow account.
contingency clause a clause in a contract requiring a condition to be met. If contingency cannot be met, the buyer is generally entitled to a refund of his earnest money.
What if a broker has more than 1 offer on the property? Broker must present all offers but there is no required order to the offers presented.
Para 3 of 1-4 Family Residential Contract (Resale) Cash portion plus the financing = sales price
Para 4 of 1-4 Family Residential Contract (Resale) TX law requires agent who is a party to a transaction or acting on behalf of a spouse, parent, or child... to notify the other party in writing before entering into a contract of sale.
Para 5 of 1-4 Family Residential Contract (Resale) Within 3 days after the effective Date, BUYER must deliver earnest money to escrow agent - Time is of the essence for this paragraph
Para 6B of 1-4 Family Residential Contract (Resale) Title company has 20 days to provide title commitment after they receive sales contract
Para 6C (1) of 1-4 Family Residential Contract (Resale) Within ____ days after effective date of contract, seller shall furnish to Buyer and title co. Seller's existing survey and Insurance affidavit.
Para 6D of 1-4 Family Residential Contract (Resale) Allows buyer to choose a number of days to review both the title commitment and survey. If buyer is unhappy with the results of either, he has the negotiated number of days to address concerns with seller.
Municipal Utility District purpose: also called water supply corporation or a utility service provider is to provide flood control or drainage, water and sewers to residents of the district
Para 6E (e3) of 1-4 Family Residential Contract (Resale) TX water code requires seller to deliver and the buyer to sign the M.U.D. disclosure prior to final execution of contract.
What can buyer do if he has not received the M.U.D. disclosure? has the right to terminate the contract
Para 6E(6) of 1-4 Family Residential Contract (Resale) If property is located in certificated service area of utility service provider (a M.U.D.) the buyer must be given notice of this, disclosing to the buyer that there may be an extra charge for having water an d sewer services connected.
Para 7A of 1-4 Family Residential Contract (Resale) Seller at seller's expense shall keep the utilities on during the time this contract is in effect.
Para 7B (2) of 1-4 Family Residential Contract (Resale) If buyer has not recv'd seller's disclosure he chooses a number of days for the seller to provide it. If buyer doesn't get it within that number of days he can terminate the contract. If buyer receives disclosure, buyer has 7 days to terminate.
When is a seller's disclosure not required? foreclosure, guardian, new build, administrator or exec of a will, tax sale, or if house is worth less than 5% of the price of the property
Para 7D (1) of 1-4 Family Residential Contract (Resale) Buyer accepts property as is.
Para 7E of 1-4 Family Residential Contract (Resale) If lender required repairs exceed 5% of the sale price, buyer may terminate the contract and receive a refund of earnest money.
Para 11 of 1-4 Family Residential Contract (Resale) SPECIAL PROVISIONS - Factual statements and business details applicable to the sale can be inserted here. Prohibited by TREC rules to insert items covered in an addendum, lease or other form has been promulgated by TREC for mandatory use.
Para 15 of 1-4 Family Residential Contract (Resale) Default - All TREC contracts have a default paragraph. States that if either party defaults the injured party can sue for performance, seek relief as provided by law or both or can terminate contract
Para 16 of 1-4 Family Residential Contract (Resale) require parties to agree to mediation for dispute resolution. If mediation fails, they move to arbitration
mediations mediator hears both sides and tries to help parties to come to mutual agreement
arbitration an arbitrator hears both sides and then tells the parties what will happen next and how to proceed.
Para 18C of 1-4 Family Residential Contract (Resale) If contract is terminated and excrow agent receives a demand of release of earnest money from 1 party, they must notify the other party. If other party does not send objection w/in 15 days, escrow agent may disburse to demanding party.
Para 22 of 1-4 Family Residential Contract (Resale) Review the addenda.
The buyers and sellers temporary lease addendum are for use of up to how many days max? 90 days max.
Addendum for coastal area property notice tells buyer that owners may gain or lose portions of the land due to actions of the waters.
Gulf Intracoastal Waterway given as addendum to notify buyers that structures must not be erected seaward of the vegetation line. If it is erected or becomes seaward of line, it may be subject to lawsuit by State of Texas for removal.
What does the HOA or POA addendum allow buyer to do? obtain resale certificate of property
Para 23 of 1-4 Family Residential Contract (Resale) buyer must deliver option fee to seller within 3 days after effective date of contract. Time is of the essence (TIOTE) on the Para.
Day 1 of option period is when? the day following the effective date of the contract.
If a buyer is going to terminate contract under the option period, when must buyer notify seller? by 5:00 PM on date specified.
Para 24 of 1-4 Family Residential Contract (Resale) if the parties need or want to see an attorney, an agent should send their clients to an attorney before the clients sign the contract.
who is responsible for filling in the effective date after the last party signs? The broker (agent acting on behalf of the broker)
What are para 7D, 11 and 23 of the 1-4 family res contract (Resale) as is, special provisions, buyer must deliver option fee to seller within 3 days after effective date of contract (TIOTE)
Statute of Frauds requires all contracts that relate to transfer of any interest in real estate be in writing to be enforceable. This applies ot compensation/employment agreements, such as listings, and buyer rep agreements.
If you have a verbal agreement (listing, purchase) for real estate what does the court see you as? a volunteer. These are not valid
When should mold be removed? when it is visible. No testing needs to be done.
remediation mold removal
does testing need to be done after mold remediation? NO
mold assessors and remediators need what? to be licensed
Are property owners able to assess and remediate their own properties without a license? yes
If you hire a mold remediator, how long does he have to give you a certificate of mold remediation after work is complete? 10 days
what does a certificate of mold remediation show? mold has been removed and underlying cause of mold has been corrected
When selling the home, the law requires seller to provide the buyer with all certificates of mold remediation for the past ______ years. 5 years
Community Property Statutory estate in Texas. All property acquired after marriage is jointly owned. Income on a separate property is community property. Separate prop is not community property nor their increase.
separate owned property prior to marriage, is this community property? no. However once community efforts, credit, or funds are used to increase the value or improve the property, community property rights accrue.
how can a spouse waive community property rights? with a written agreement
Homestead statutory estate in Texas. Homestead protection is automatic and cannot be waived. Protected from forced sale by all creditors except: mortgage, property taxes, mechanics and materialmen's liens and HOA's.
If a homestead is foreclosed because of HOA fees, how long does the owner have to redeem the property? 6 months.
If a homestead is foreclosed on for unpaid property taxes, how long does the owner have to redeem property? 2 years.
What is the maximum size of a Urban homestead? 10 acres
What is the maximum size of a rural homestead? 200 acres for a family or 100 acres for a single
What happens if a family rural homestead is larger that 200 acres allowed for the homestead claim? they have the right to designate which land will be considered the homestead. The 200 acres do not have to be connected.
How many homesteads can you have? 1 homestead per person or family
What is the homestead exemption? tax benefit, should not be confused with the homestead protection. Homeowners must apply for the exemption and must own and occupy the home on Jan 1 to qualify. You can back file for up to 2 years if you have failed to claim this exemption.
Deceptive Trade Practices Act (DTPA) allows for the recovery of triple damages. An individual has 2 years from the discovery of the deception to file a complaint.
What is an example of a claim with DTPA against a real estate agent? negligent misrepresentation of material facts
Interstate successons how property passes when a person dies without a will or with a will that makes only a partial distribution of their property. Property will be distributed according to the laws of descent and distribution.
intestate without a will at death
testate with a will at death
Title by descent heirs to any real property will have title by decent
who has priority over property under laws of descent? spouse and children
executor party dies with a will and has an appointed person to oversee their estate
title by devise heirs are named in a will
probate judicial process to prove or confirm a will or to settle an estate of one who dies intestate.
when a district judge passes title to heirs at probate, how long does it take the title to transfer? 30 days
how long do landlords have to account for the security deposits within 30 days of tenants leaving
what must landlords provide before renting to new tenants? new locks no later than 7 days after tenant moves in. Smoke detectors must be operational at time tenant is granted possession. Keyless deadbolts are required but not double cylinder
what is mandatory for a landlord to do in texas for new renters 30 dyas settle depos, 7 days to rekey after possession and 0 days for smoke detectors, must have keyless deadbolt
when are foreclosure sales held in TX? first Tues of month
how are a majority of foreclosures in TX done? non-judicial due to the use of the Deed of Trust
when are foreclosures in TX none non-judicial? for home equity loans which are judicial in TX
What does real estate recording do? places a document in public records-providing legal notice to the world
how is recording done in Texas? PROPERTY RIGHTS TO LAND MUST BE RECORDED IN THE COUNTY WHERE THE PROPERTY IS LOCATED. Deed, mortgage, and other instruments affecting real estate are not effective if not recorded.
Mechanics lien lien for labor or material for the improvement of property. Can use to foreclose on a homestead property
2 Programs for TX land board 1. Housing assistance - allows eligible TX vets to have mortgage ln sold to the TVLB instead of Secondary market. 2. TVLV TVLB allows vets to borrow up to $150K for unimproved property.
What is the benefit to the vet of having mortgage loan sold to TVLB rather than the 2nd market? interest rates significantly lower than prevailing market rates.
If a vet purchases unimproved land from TVLB, what are the guidelines? buyer must obtain survey and pay 5%down for a 30 yr loan. The min tract size is one acre.
are veteran's loan benefits available to surviving spouse of vet listed as missing n Action or whose death was service connected? yes
What kind of input does HOA have in Texas about flags? The can regulate but not ban flying flying of flags of US, State of TX, or any branch of US armed forces.
What kind of input does HOA have about solar panels, religious symbols and political signs? They can regulate but not ban.
Can a HOA ban privacy fences in Texas? yes
If an applicant for a sales license engages in a brokerage transaction the applicant: may faced criminal charges resulting in fines and or jail time
An unlicensed assistant is hired to increase an agents listing inventory. What may the assistant do? create marketing flyers and distribute them door to door.
An individual is exempt form real estate license in TX if the indiv is doing what for apartments? being and on site manager of an apartment complex
when a sales agents sponsorship is terminated by his sponsoring broker, the broker must: notify the sales agent of the termination in writing and return the license to TREC immediately.
If an unlicensed indiv provides a referral that ends in a closing, ho can you repay them? $50 gift card, no cash or cards that can be converted to cash.
a license holder while acting as an agent for another should what? be scrupulous and meticulous in performing the agent's functions
when a broker is acting for more than one party, the broker should disclose: only material information about the property
in which of the following situations would the Texas property code excuse seller from disclosure? seller never lived there, foreclosure, value exceeds 5% of sales price, improvements were done prior to 1978. foreclosure
An agent's disclosure of representation must be made how? orally or din writing
according to the TREC residential resale contract form, if a termination option fee is paid, day one of the option period is when? the day following the effective date of the contract
your buyer-client insists on entering into a lease-purchase agreement. You must Recommend buyer seek advice of an attorney.
an agent has received a $75 check from a home warrant company. Can you keep the check? Yes, if the agent provided a RSC disclosure and the broker authorized the payment to the agent.
If a cash buyer would like to have an appraisal done to ensure that the property is priced at or below market value, the agent should: Advise the attorney for the proper wording to put in the contract
if the buyer and seller agree to rely on an existing survey, the survey and the affidavit T-47 must be provided: within the negotiated number of days of the effective date of the contract.
If either party to the contract breaches the agreement and s in default, can the injured part terminate contract? yes
a license holder MUST use a TREC promulgated form except: principal requires the use of another form
when must a property owner declare their primary residence as their homestead to get homestead protection? never
A DTPA claim cannot be brought against a license holder for what? giving incorrect advice or opinions
before closing, if a buyer has not received a MUD disclosure, what options does the buyer have? revocation of contract
broker entered representation agreement with buyer on the phone, broker found property and was procuring cause of sale, buyer refused to pay comm. What can broker do? according to TRELA, there is no recourse for the broker - must be in writing
which of following is requested through HOA addenda? HOA disclosure of property condition, itemized list of HOA Charges, background check, resale certificate? resale certificate
what information is contained in paragraph 7D of he 1-4 family contract? "as is" provision
what type of information can you put in para 11 of the 1-4 family resale contract? business details
what information is contained in Para 11 (special provisions) of the 1-4 family contract? business details
an HOA wants to foreclose on a property owned by a soldier on active duty. Based on the serviceman's readjustment act what is true? The VA must be notified prior to foreclosure
which of the following is NOT required for a back-up offer to become effective? terminate prev contract, pay earnest money, pay option fee, name inspector? name inspector
a broker is not required to: review all contracts, make sure agents use promulgated forms, be sure agents obey laws of advertising, be sure agents follow all TREC rules and regs. review all contracts
if a broker is using an assumed name, or DBA, this must be filed in: In the county courthouse in every county where he has an office
what are the penalties for practicing an act of brokerage without a license? fine of $4000 and/or imprisonment in county jail of up to 1 year plus civil suit for damages
what is the difference from a broker-intermediary and sales agent appointee? sales agent can give advice and opinions to one party in the transaction.
when a broker markets his own property he should Inform the buyer that he is a license holder
which of the following is considered community property? property acquired prior to marriage, acquired after marriage, property held in tenancy in common, property inherited by husband property acquired after marriage
marketing real property by guaranteeing a profit when it is resold is: cause for suspension or revocation of lisense
the rules and regs of TREC have what? the full force and effect of the law
TREC was created in 1949 primarily to what? Enforce TRELA
The standard contract forms adopted by TREC must: be used by real estate agents in all transaction to which the forms are applicable
according to TREC acting as a broker or sales agent without first obtaining a license is a: Misdemeanor
A buyer and seller have signed contract. Buyer has received a survey and is unhappy. What action can he take? The buyer has previously negotiated number of days to notify the seller of his concerns and ask the seller to correct the problem.
what power does the commission have when a license holder fails to comply with a subpoena? file suit through the attorney general to enforce the subpoena
A license holder in violation has ignored a summons from TREC. What will TREC automatically do? set a hearing in Austin
What remedy is available in every TREC contract from for Breach of contract? Mediation
a license holder is working as a buyer's agent. Her buyer wants to take his contract to an attorney for advice. Agent should: Give the contract to buyer to take to his attorney.
which of the following would cause TREC to refuse to license an applicant? felony, cant be honest or trustworthy, misdemeanor, past revocation of license cant be honest or trustworthy
a tenant has vacated rental property. He still owes rent. He has left personal property behind. The landlord cannot do what? cannot attach the wages of tenant for rent owed. Landlord can sell, dispose or pack and store property
when agent has been assess an administrative penalty by TREC as a result of TREC determining an infraction of its rules, how long does the agent have to pay the penalty? 30 days
t or f - only a licensed remediator can remove mold? false
t or f a homeowner is entitle to a certificate of mold remediation within 10 days of the work being done? true
t or f - an insurance company cannot make an underwriting decision based on previous mold claims in the property owner has a certificate of mold remediation. true
t or f - when a property is sold, the seller must provide all certificates of mold remediation he has received in the past 5 years true
In order to be certified as a mediator for the Texas Real Estate commission and individual must complete a course in alternative dispute resolution ADR the course is how many hours? 40 hours
If a license holder, under CE requirements, renews on time without including the required education what will TREC do? consider the license active for an additional 60 days, during which time the license holder must complete the required education and pay the $200 amount for fees and penalties.
If broker represents a seller who does not truthfully disclose all about his property and the sale is later reversed in court, Is the broker entitle to keep the commission earned on the sale? yes
What are the categories it is illegal to discriminate against? race, color, religion, sex, handicap, familial status, national origin
where do you file a complaint if you feel you have been discriminated against? US Department of Housing and Urban development
What housing is covered under the Fair Housing Act? Covers most housing, in some cases it exempts owner-occupied buildings with no more that 4 units, sing family housing sold or rented without the use of a broker, and housing operated by orgs and private clubs that limit occupancy to their members
What can landlords not do if someone has a disability? refuse to let them make reasonable modifications to the dwelling or common use areas at their expense. Cannot refuse to make reasonable accommodations in rules, policies, practices or services if necessary for the disable person to use the housing.
Wetlands are often associated with what? endangered species
a veteran cannot use his entitlement to obtain what type of loan? a commercial investment loan
the due on sale clause is found in a what? mortgage
Agent had listing and property did not sell. It expired. Seller disclosed confidential info to agent. Several months later, the agent has a buyer client interested in purchasing the same property. How long must the seller's private info be kept confid? forever
a metes and bounds description will always have what? a point of beginning
which of the following is an example of economic obsolescence? deferred maint, air pollution, unpopular floorplan, structural defects in property? air polution
an agent designed an innovative technology in the office that would substantially improve service to clients. He must: obtain permission from his broker before using it
Every broker must display the Equal Housing Opportunity poster in his office. The poster is usually distributed by? HUD
What is a FHA loan? totally insured by the FHA
a broker is most often what type of agent? special agent
what type of loan has a rate linked to the economic index ARM
When should an agent advise a client to get title work done? before closing
what is considered evidence against a broker accused of discrimination. failure to display the equal housing poster in their office.
How many hours of continuing education can carry over from one license period to another? 0
In TX a homeowner's association can regulate and ban what? privacy fences
How much E&O insurance is required when a designated broker has less than 10% interest in the LLC? $1 million
With regard to TREC investigating the actions of agent against who a complaint is filed, what would cause a complaint to be a priority? the complaint involves personal or financial harm to a consumer
violation of the license act is a class A misdemeanor. The criminal penalty could be a fine of up to? $4000
income approach for an appraisal would be most widely used for what? commercial and investment property rented to tenants.
the right to cross over a property owned by another is called: easement
taxes on real estate automatically become: a lien, an easement, a relinquishment, a mortgage? A Lien
deeds are recorded where? county courthouse
real property owned by the husband or wife prior to marriage is called? Separate property
Eminent domain is what? the right to take property for public use
taxes are determined by multiplying the tax rate by the what? assessed valuation
the person who borrows the money and give the mortgage is know as the what? mortgagor
A person who has real property willed to them by a relative is said to acquire title by what? devise
usary charging an interest rate higher than the legal limit
who do escrow accounts protect? the principals
A mortgage insured by the FHA is usually borrowed from whom? a lending institution
anything fastened to real property permanently is called what? real property
what does recording a mortgage do? creates a lien
borrowing funds to increase purchasing power is called what? leverage
commingling as used in real estate law is what? placing principal's money with the broker's money
the number of acres in a section is 640
fannie mae refers to: federal national mortgage association
to be binding who must sign a lease? lessor and lsessee
an agent is one who is employed by who? a principal
a contract which has no force or effect is said to be invalid
what is ha judgment? a court decree
what is a loss of value due to being out of date called? functional obsolescence
a mortgagee is the person who what? lends the money to mortgagor
greenfield land not previously developed
what is a quit claim deed generally used for? remove a defect in title
Express means: written and spoken
A buyer has signed an offer to buy and later receives the seller's disclosure. How many days does he have to terminate offer after receiving the disclosure? 7
what determines selling price of a property? market value
the period in which a building earns sufficient income to justify its operation is: economic life
describing land boundaries using terminal points and angles is called? metes and bounds
the statutory information statement about agency must be provided when? when the license holder meets face to face with a party concerning a proposed real estate transaction
recission termination of contract by mutual agreement of parties
apartment bldg where units are individually owned and there is common ownership of lobbies, elevator, etc, is called what condominium
appurtenance something which passes with the land, such a right of way
person who executes a deed is who? person whose property rights are transferred
RESPA stands for: real estate settlement procedures act
voluntary alienation transfers title by deed
How long under civil rights act of 1968 does a person who has been discriminated against have to file a complaint? no more than 2 years from the date of the incident
when a sales license is issued, who is it mailed to? the sponsoring broker
punitive damages for a single violation in a suit brought under the Federal Fair Housing Law are limited to how much? $150,000
Created by: delorya