Chapter 7 - Subchapter A Flashcards
Sec. 1101.001.
Short Title states that the chapter may be cited as The Real Estate License Act.
Sec. 1101.002.
Definitions for these terms: ⦁ Broker ⦁ Business entity ⦁ Certificate Holder ⦁ Commission ⦁ Real estate ⦁ Residential rental locator ⦁ Salesperson ⦁ Sub-agent
Sec. 1101.003.
Core Real Estate Courses lists eleven categories of courses and their content.
Note: We’ve indicated sample topics under each category below, but this isn’t an all-inclusive list of topics. For the complete list, please read the most current copy of the law.
⦁ Agency Law
a. Relationship between sales person and pricipal
b. Salesperson’s fiduciary duties
c. Disclosure of agency
⦁ Contract Law
a. Elements of a contact
b. Offer and acceptance
c. Unauthorized practice of law
⦁ Principles of Real Estate
a. Licensing
b. Legal Descriptions
c. Closing Procedures
⦁ Property Mangement
a. Roles of property manager
b. leases
c. tenant relations
⦁ Real Estate Appraisal
a. Purposes
b. Case Studies
c. Reporting
⦁ Real Estate Brokerage
a. Agency of law
b. Operational policies and procedures
c. Recruiting and training personnel
⦁ Real Estate Finance
a. Primary and secondary money markets
b. mortgage loans
c. closing costs
⦁ Real Estate Investment
a. Investment Analysis
b. Leverage
c. Tax Shelters
⦁ Real Estate Law
a. Property Rights
b. Contracts
c. Foreclosures
⦁ Real Estate Marketing
a. Professionalism and ethics
b. Listing procedures
c. Advertising
⦁ Real Estate Mathematics
a. Percentages
b. Interest
c. Poration
Sec. 1101.004.
Acting as Broker or Salesperson states that a person is acting as a broker or salesperson if that person directly or indirectly performs or offers, attempts, or agrees to perform for another person, with the expectation of receiving valuable consideration, any of the acts that were described under the broker definition we covered on an earlier screen.
Sec. 1101.005.
Applicability of Chapter lists the persons or entities to whom this chapter does not apply.
These persons or entities include:
an attorney licensed in this state.
an attorney-in-fact authorized under a power of attorney to conduct a real estate transaction.
a public official while engaged in official duties.
an auctioneer licensed under chapter 1802 while conducting the sale of real estate by auction if the auctioneer does not perform another act of a broker or salesperson.
a person conducting a real estate transaction under a court order or the authority of a will or written trust instrument.
§535.5 Exemptions
In addition to the exemptions listed on the previous screens, §535.5 of the Texas Rules also lists these exemptions:
⦁ A person acting as a principal who purchases, sells, leases, or subleases real estate for profit
⦁ Trade associations or other organizations that provide an electronic listing service for their members, but do not receive compensation when the real estate is sold
⦁ An answering service or clerical or secretarial employees identified to callers as such to confirm information concerning the size, price and terms of advertised property
⦁ An unlicensed person who acts as a host or hostess at a property being offered for sale by the broker, provided the unlicensed person engages in no activity for which a license is required
Sec. 1101.0055.
Non applicability of Law Governing Cancellation of Certain Transactions states that a service contract that a license holder enters into for services governed by this chapter isn’t a good or service governed by Chapter 601, Business & Commerce Code.
Sec. 1101.006
Application of Sunset Act says that the Texas Real Estate Commission is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the commission is abolished and this chapter, Chapter 1102, and Chapter 1303 of this code and Chapter 221, Property Code, would expire September 1, 2025.v
