Principles of Real Estate Flashcards
BROKERAGE
The definition of brokerage is the business of bringing parties together who are interested in conducting a real estate transaction.
BROKER
The statute defines broker in Sec. 1101.002 of Texas’s The Real Estate Licensing Act as a person who, in exchange for a commission or other valuable consideration or with the expectation of receiving a commission or other valuable consideration, performs for another person one of the following acts, including helping another person to conduct a real estate transaction:
They deal with legal sales contracts daily,
WHY DO WE NEED A BROKERAGE FIRM
TO OFFER GUIDANCE, AND SUPPORT. JUST A REGULATION. IN TURN YOU SPLIT YOUR SALE WITH THEM
The Real Estate License Act (TRELA)
These laws define the legal relationship between licensees and the parties to a real estate transaction. They also serve to provide each with a clear understanding of the duties that the real estate licensee will be expected to perform in the transaction. The state legislature of Texas passed the Texas Real Estate License Act to protect the public from brokers and sales agents who are dishonest. TRELA also: Establishes rules that license holders must follow that pertain to obtaining, and later maintaining, a real estate license.
Sales Agent
A sales agent (to whom this class is targeted) is a licensee employed by or associated with a broker, who conducts brokerage activities on behalf of the broker in return for a fee or a commission. They perform real estate transactions under the ultimate supervision of the broker.
Regarding Legal Advice
While a broker may be a licensed professional in the field of real estate, he or she is not a member of the Texas state bar and, therefore, is not allowed to practice law in the state (unless, of course, he or she is also a licensed attorney). The Texas Real Estate Commission, TREC, has the authority under TRELA to suspend or even revoke a broker’s license if they conduct the unlawful practice of law.
While brokers deal with legal sales contracts daily, licensees (brokers or sales agents) should advise their clients, buyers or sellers, that if there are provisions in those contracts that they do not understand, the clients should seek legal counsel.
Education Standards Advisory Committee
purpose of ESAC is to approve and regulate continuing
education providers and accredited schools offering real estate courses. Members of the committee serve two-year terms, expiring on December 31 of each
even-numbered year. A member may serve up to three consecutive terms on the
committee, and may be reappointed after a break in service of at least two years.
TREC
The Texas Real Estate Commission
