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Principles of Real Estate 1 > Module 7 > Flashcards

Module 7 Flashcards

1
Q

Texas Real Estate License Act

A

The statute that controls the licensing of persons permitted to practice real estate brokerage in Texas; protects the public against unscrupulous brokers and sales agents

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2
Q

Certificate Holder

A

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

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3
Q

Residential Rental Locator

A

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

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4
Q

Texas Sunset Act

A

Texas legislation providing for the review of the Texas Real Estate Commission and the Texas Appraiser Licensing & Certification Board by the Sunset Commission

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5
Q

Intermediary

A

A broker that represents both parties of the transaction

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6
Q

Broker

A

A properly licensed party who serves a Principal in an agency relationship; also called an Agent

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7
Q

Commission

A

Payment to a broker for services rendered, such as in the sale or purchase of Real Property; usually a percentage of the selling of the property

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8
Q

Sales Agent

A

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

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9
Q

Texas Real Estate Research Center

A

Housed at Texas A&M University, this center collects and compiles data relating to real estate in Texas

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10
Q

Real Estate Recovery Trust Account

A

A fund established by Texas Law to reimburse persons damaged by the actions of a broker or sales agent

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11
Q

Business Entity

A

A domestic entity or foreign entity as defined by Section 1.002 of the Business Organizations Code that is qualified to transact business in this state

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12
Q

License Holder

A

A broker or sales agent licensed under the Texas Real Estate License Act

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13
Q

Subagent

A

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.

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14
Q

Broker-Lawyer Committee

A

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

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15
Q

A broker or sales agent licensed under TRELA

A

License holder

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16
Q

A broker who is employed to negotiate a transaction between two parties to a transaction and may act as an agent of the parties

A

Intermediary

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17
Q

Drafts and revises contract forms that are capable of being standardized to expedite real estate transactions and minimize controversy

A

Broker-lawyer committee

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18
Q

An individual who sells or leases real estate for another in exchange for a commission

A

Broker

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19
Q

Qualified to transact business in the state

A

Business Entity

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20
Q

_______________ purpose is to protect the public against unscrupulous brokers and sales agents.

A

TREC’s

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21
Q

The designated broker of a licensed real estate corporation must be

A

licensed as a broker.

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22
Q

An out of state attorney must have a

A

Texas real estate license

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23
Q

A broker is a person who, for compensation:

A

sells, exchanges or leases real estate property, lists or attempts to list real estate for sale, lease or exchange AND controls the acceptance or deposit of rent from a resident of a single-family real property unit

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24
Q

A person who offers, for consideration, to locate a unit in an apartment complex for lease to a prospective tenant is known as a:

A

residential rental locator

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25
Q

The number of hours required for a broker or sales agent license is established by the:

A

State Legislature

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26
Q

A subagent is a license holder who:

A

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

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27
Q

Sarah gets a job as a sales representative for Galaxy Custom Homes. She will be working in the new Galaxy model home park and will be limited to selling Galaxy homes only. Sarah will:

A

be exempt from the requirement to be licensed

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28
Q

Julie is a licensed attorney in Louisiana. She wants to be paid a commission to represent/negotiate on behalf of a purchaser of real estate in Texas. Can Julie do this?

A

Julie can be paid a commission to negotiate on behalf of the purchaser in Texas, but only if she obtains a Texas Real Estate License

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29
Q

The provision of the License Act that could potentially abolish the Texas Real Estate Commission is the:

A

Sunset Act

30
Q

The Texas Real Estate License Act is a part of the:

A

Occupations Code

31
Q

Mark gets a new job as a petroleum landman and will be securing leases for a variety of oil and gas companies. Before Mark can begin work, he must obtain a valid real estate license. T or F?

A

False

32
Q

TREC may issue or revoke sales agent and broker

A

licenses

33
Q

Broker members of the Texas Real Estate Commission must have been actively engaged in the real estate brokerage business as their primary source of income for the previous:

A

five years

34
Q

The Commission consists of _____ members.

A

nine

35
Q

The Commission members are appointed by the ____________________ and approved by the ______________.

A

Governor, Senate

36
Q

_______ members of the Commission represent the public.

A

Three

37
Q

_______ members of the Commission are brokers.

A

Six

38
Q

The Commission has the authority to set fees for

A

filing an application for a broker license

39
Q

The Commission may adopt rules that require license holders to use certain contract forms adopted by the Commission _________.

A

in all transactions, except those where a form has been prepared by the property owner or the property owner’s attorney

40
Q

The Commission may solicit and accept gifts, grants, and donations from:

A

any source

41
Q

True or False - Members of advisory committees created by the Commission are compensated on an hourly basis for their service on the committee.

A

F Members of advisory committees are NOT compensated

42
Q

True or False - The Texas Real Estate Commission has the authority to establish standards of advertising by a license holder acting as a residential rental locator.

A

T The Texas Real Estate Commission has the authority to establish standards of advertising by a license holder acting as a residential rental locator

43
Q

TREC may investigate a complaint that is made within _______________ from the date of the incident

A

4 years

44
Q

The Commission shall prepare and maintain a written plan that describes how a person who has __________ may be provided reasonable access to the commission’s programs.

A

has a mental disability and/or a physical disability

45
Q

The Commission will investigate a complaint that is:

A

written and signed

46
Q

The Commission is required to prioritize the investigation of complaints based upon:

A

The Commission is required to prioritize the investigation of complaints based upon, the degree of potential harm to a consumer, potential for immediate harm to a consumer and overall severity of the allegations in the complaint

47
Q

The Texas Broker-Lawyer Committee:

A

writes the TREC-promulgated contract forms

48
Q

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

A

to pay renewal fees

49
Q

True or False - A residential apartment locator in Texas is not required to be a license holder.

A

F A residential apartment locator in Texas is not required to be a license holder

50
Q

The sales agent exam is divided into two parts. The state portion has _____  questions, and the national portion has _____ questions.

A

30, 80

51
Q

The passing grade on the sales agent exam is ___%.

A

70%

52
Q

Sally wishes to once again become active in the real estate brokerage business. Her license has been expired for seven months. She must:

A

submit an application for a new license

53
Q

True or False - A license holder must advise a buyer who has a written offer to have the abstract covering the real estate examined by an attorney to be provided with or obtain a title insurance policy.

A

T A license holder must advise a buyer who has a written offer to have the abstract covering the real estate examined by an attorney to be provided with or obtain a title insurance policy

54
Q

True or False - A broker may act as intermediary between parties to a real estate transaction if the broker obtains oral consent from each party for the broker to act as intermediary.

A

F A broker may act as intermediary between parties to a real estate transaction if the broker obtains oral consent from each party for the broker to act as intermediary

55
Q

A license holder who represents a party in a proposed transaction shall disclose orally or in writing that representation

A

at first contact with another party

56
Q

The maximum payment out of the recovery account is ______________ per transaction and ____________ per license holder.

A

$50,000, $100,000

57
Q

All of the following are true regarding the Real Estate Recovery Account, EXCEPT:

A

TREC sets the maximum payments from the fund

58
Q

The Real Estate Recovery Account is:

A

to protect aggrieved individuals who suffer a monetary loss due to illegal acts of license holders

59
Q

The Recovery Account receives deposits from TREC when TREC:

A

TREC receives an administrative penalty from a licensed or unlicensed individual

60
Q

Material Misrepresentation & Selling/Leasing without Consent

A

(b-3) Failing to disclose a material misrepresentation to a potential buyer concerning a significant defect, including a latent structural defect, known to the license holder that would be a significant factor to a reasonable and prudent buyer in making a decision to purchase real property makes a material misrepresentation can revoke in the commission suspending or revoking a license.
(b-19) Offering to sell or lease real property without the knowledge and consent of the owner of the real property, or their agent, can result in suspension or revocation of a license.

61
Q

True or False - A broker may disclose to the buyer or tenant that the seller or landlord will accept a price less than the asking price if the broker has oral instruction to do so.

A

F A broker may NOT disclose to the buyer or tenant that the seller or landlord will accept a price less than the asking price if the broker has oral instruction to do so

62
Q

A licensed broker may not pay a commission to or otherwise compensate a person directly or indirectly for performing an act of a broker unless the person is:

A

A licensed broker may not pay a commission to or otherwise compensate a person directly or indirectly for performing an act of a broker unless the person is both a real estate broker licensed in another state who does not conduct in this state any of the negotiations for which the commission or other compensation is paid and a license holder

63
Q

True or False - TREC may suspend or revoke a license if a license holder induces or attempts to induce a party to a contract of sale or lease to break the contract for the purpose of substituting a new contract.

A

T TREC may suspend or revoke a license if a license holder induces or attempts to induce a party to a contract of sale or lease to break the contract for the purpose of substituting a new contract

64
Q

When an amount is paid out of the Recovery Account on behalf of a license holder, the license will be revoked:

A

if repayment of the account is not received by the 31st day after TREC provides notice to the license holder

65
Q

The Real Estate Commission may impose an administrative penalty of up to ________ per day.

A

$5000

66
Q

In determining the amount of an administrative penalty, the executive director of TREC may consider all of the following except:

A

How long the license holder has been licensed

67
Q

If an unlicensed person does an act that requires a real estate license, that person is guilty of:

A

a class A misdemeanor

68
Q

The civil penalty of up to _____________ may be levied for practicing real estate brokerage without first obtaining a real estate license.

A

3 times the amount of money received

69
Q

Which of the following is true regarding the imposition of an administrative penalty by TREC?

A

If the person does not pay the administrative fee, the administrator is authorized by the Commission to refer the matter to the attorney general for collection

70
Q

Broker candidates must achieve ________% on each section to pass

A

75

Principles of Real Estate 1 (12 decks)

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