Chapter 1: Texas Contract Law Flashcards
___________ created by the legislature in the 1970s to collect and compare data about real estate in Texas
Real Estate Center
__________ establish by TREC to write a mandatory residential contract forms for license holders
Broker-lawyer committee
_____ created by the legislature in 1949 to carry out the provisions of TRELA
Texas real estate commission
_______ administered by TREC to protect aggrieved individuals who suffer a monetary loss due to illegal acts of license holders
Real estate recovery trust account
________ requires proof that the act or omission was a significant factor in bringing about an injury
Producing cause
What year was the Texas real estate act created?
1939
What year was the Texas real estate commission established to enforce the real estate act?
1949
True or false: if an individual engages in a real estate transaction without first obtaining a license, they are guilty of a class a misdemeanor, which is punishable for a fine up to $4000, and or up to one year in the county jail
True
In the real estate recovery trust account what is the maximum amount per transaction?
$125,000
In the real estate recovery trust account what is the maximum amount any real estate license holder can use?
$250,000
How much does an applicant have to pay towards the trust account?
$10
True or false if an amount is paid up on the license individuals behalf their license can be revoked or suspended in, cannot be re-issued until the account has been repaid with interest
True 
What documents can’t a license holder prepare
Deeds, wills, deeds of trust, option agreements, and lease purchase agreements
What forms do the broker-lawyer committee write?
Promulgated forms
What does the word promulgated mean?
To make known by open declaration or publish
How many members does the broker-lawyer committee have?
13 members: six appointed by TREC
Six members from the state bar of Texas, and one public member
Trec has only two promulgated lease forms. What are they?
Buyers temporary residential lease and sellers temporary residential lease
In a buyers temporary residential lease, the buyer occupies the property for no more than ______________ to closing
90 days prior
In a sellers temporary residential lease, the seller occupies the property for no more than _________ closing
90 days after
What is a right of first refusal?
Gives the tenant the right to purchase the lease property by matching or bettering the offer before the property is sold to someone else.
What Texas law applies to trade and commerce that was passed in 1973
Deceptive trade practices act
The DTPA allows
And agreed consumer to sue a seller of goods for damages
Goods are also known as
Chattel
What does services mean?
Work labor or repair of goods
True or false a brokerage is not a service
False
An individual, corporation, partnership, or government source who seeks to acquire or purchase the goods or services is
A consumer
What requires proof that an act or omission was a significant factor in bringing about injury?
Producing cause
What is a good tool to use as a defense in a DTPA lawsuit?
Sellers disclosure notice
True or false: a seller, or their agent has to release information, whether a death by natural causes suicide, or anyone on the property having HIV aids or any related illnesses
False
