Part 7 Flashcards
What is the purpose of Section 1101.160 regarding dispute resolution?
A) To allow TREC to settle lawsuits privately
B) To require license holders to hire attorneys for all disputes
C) To encourage mediation or negotiation with a trained individual
D) To limit TREC’s involvement in consumer complaints
C
What does Section 1101.351 require in order to obtain a real estate license in Texas?
A) Must have two years of full-time work experience
B) Must pass a polygraph exam and credit check
C) Must be of good moral character and meet all education, experience, and exam requirements
D) Must close at least one real estate transaction under supervision
C
Why is the inclusion of a criminal history review in licensing important under TRELA?
A) To comply with federal background check laws
B) To determine eligibility for federal housing subsidies
C) To verify good moral character and public trust
D) To discourage applicants from out-of-state
C
How many classroom hours are required for a Texas real estate sales agent applicant?
A) 90 hours
B) 120 hours
C) 180 hours
D) 250 hours
C
What is a broker applicant required to show in addition to education and exam completion?
A) Two years of property management experience
B) Four years of active licensure within the previous five years
C) A sponsorship agreement with three agents
D) Ten successful real estate transactions in a calendar year
B
Which of the following best reflects a license holder’s fiduciary duty to a client?
A) Closing deals quickly to maximize commission
B) Maintaining confidentiality and acting in the client’s best interest
C) Offering discounts to first-time buyers
D) Promoting listings on as many platforms as possible
B
Which of the following is not a listed ground for disciplinary action by TREC?
A) Misrepresentation or fraud
B) Failing to maintain required records
C) Practicing outside Texas without a license
D) Demonstrating incompetency or unworthiness
C
What is one of the rights granted to a license holder facing disciplinary action under TRELA?
A) Automatic reversal of the penalty after 30 days
B) A public apology from TREC
C) A hearing before the State Office of Administrative Hearings (SOAH)
D) Mediation through the Texas Bar Association
C
What factor does TREC consider when determining the amount of an administrative penalty?
A) The number of contracts the license holder has closed
B) Whether the violation was reported by a competitor
C) The seriousness and frequency of the violation
D) The agent’s length of time in the business
C
What must a broker record for each trust account transaction?
A) The client’s full credit history
B) The brokerage’s tax ID
C) The source, purpose, and final use of the funds
D) The name of the escrow officer
C
How soon must a broker deposit trust money after receiving it, according to TRELA guidelines?
A) By the end of the month
B) Within 24 hours
C) Within three banking days
D) Within one week
C
According to TRELA, what must all forms of advertising by a license holder include?
A) A photo of the agent
B) The license holder’s phone number
C) The name of the broker or brokerage firm
D) The license holder’s email address
C
. Where can brokers and agents access the full text of TREC’s administrative rules when needed?
A) From the IRS website
B) Only by written request to the State Bar of Texas
C) Through links available on the TREC website
D) By attending TREC’s annual ethics summit
C
