State Exam Flashcards
What does TRELA stand for
The Texas Real Estate License Act
What does TREC stand for
The Texas Real Estate Commission
What year was TREC founded
1949
What year was TRELA passed
1939
What is the difference between TREC and TRELA
TREC was created to enforce the TRELA law
What are the agencies that are regulated by TREC
- Real Estate Brokers and Salespersons
- Real Estate Inspectors
- Real Estate Appraisers
- Education Providers for Real Estate and Inspection Courses
- Residential Service Companies
- Timeshare Developers
- Easement or Right-of-Way (ERW) agents
ALL OF THE ABOVE
How many members does TREC consist of?
9 Members - 6 brokers, 3 general public
What is the Broker-Lawyer Committee
Advisory body to the TREC
How many Members are in the Broker Lawyer Committee
13 members - 6 Brokers, 6 Lawyers, and 1 public appointed by the Gov
How long do the Members of the Broker Lawyer Committees serve for?
6 Year terms
What does ESAC Stand for
Education Standard Advisory Committee
What Year was ESAC founded
2011 under the Senate Bill 747
What does ESAC do
Review and revise curriculum standards, course content,
How many Members are in ESAC
12 members - 7 Brokers, 4 Real Estate Instructors, 1 Public
What are examples of someone who does not have to have a RE License
- When a Buyer or a Sell is acting as a Principal
- A Lawyer
- Manger of an apartment complex
- Builder of a new home
What is the RE recovery fund
To reimburse consumers who suffer damage caused by RE License holders
What are the 2 Account/Fund to reimburse consumers who suffered damage from RE License holder
The Real Estate Recovery Trust Account, and the Real Estate Inspection Recovery Fund
The aggregate amount recoverable from the Real Estate Recovery Fund by all claimants for losses
caused by one licensee shall NOT exceed:
$100,000
If TREC revokes the license of a salesman, to whom would the salesperson appeal?
The district court
If a license holder fails to comply with a subpoena, what can TREC do?
File a suit through the Attorney General’s office
What is TAR
Texas Association of Relators
According to TREC rules, when MUST you inform a seller about the market value of their home?
When the listing is taken
A residential rental locator shall prominently display in a place accessible to clients:
the locators licensed by the commission
An individual manages several properties for several owners. Is this person required to have a
real estate license?
Yes, he doesn’t need one if it is for one owner
Who can appraise any type of property regardless of transaction value or complexity?
Certified general appraiser
An applicant for a broker or salesperson has _______ to satisfy the requirements after they file
the application
1 year
An applicant who fails an examination
May apply for reexamination by filing a request accompanied by the proper fee
How long does a broker have to return a salespersons license to Trec when they quit?
Immediately
5 Canons of ethics
Fidelity, Integrity, Competence, Discriminatory Practices, Consumer information form 1-1
Real Estate Investment Trust (REIT)
Real Estate company modeled after mutual funds - a way to invest - purchase of equity - like owning stocks
Seller’s Disclosure Notice
form seller makes available on or before the effective date of contract
If Seller’s Disclosure Notice is not give on or before the effective date the Buyer has how many days to cancel the sale?
7 days
What is Information About Broker Services
a mandatory form that brokers need to provide anyone
What is a FSBO
for sale by owner
Residential Real Estate Listing Agreement - Exclusive right to sell
Form from TAR - principle contracts with seller to give broker the right to sell for commission
what is Intermediary
Broker represents buyer and seller
What are Non fiduciary duties
owe all parties honesty and fairness
What are the fiduciary duties
OLDCAR (Obedience, Loyalty, Disclosure, Confidentially, Accounting, Reasonable Care, Diligence)
What is commingling
when a Broker places escrow money into the company operating acct
Do licensees have to use standard or promulgated forms of TREC when Applicable (T/F)
True
What are the three exceptions where a license does not need to use a standard TREC form
When you are the principal, when an attorney draws it up, if it is a government required form
Which of the following would end a real estates salesmen authority?
When he has accepted earnest money
when he witness a theft
with the death of his broker
when a disagreement w/ a client
When broker dies
Can we accept earnest money for the broker
Yes Agents need a lisncess to deposit money tonto an escrow
What must a buyer Representation have
a termination date
Promising a future profit to a prospect when it is resold is
Permitted
Unethical bot not against the law
cause for suspension
appropriate
Cause for suspension - You cannot tell a seller you will sell his house for more
A listing contract that pays the agent commission unless the seller procures the buyer is
an exclusive agency
What are the 4 types of listing
Exclusive rights to sell
Exclusive Agency
Open Listing
Net Listing
Who owns the listing contracts obtained by a salesmen
the employing broker
Who is responsible to TREC and the public for the salespeople
the sponsoring broker
how does TRELA define the first face to face meeting?
When substantive discussions occur
What is the IABS form
the form that must be given a buyer/seller during the first substantive meeting
What does the Texas state law say about the IBAS form as it relates to email
The form can be attached to the email or the link can be in the body. It can not be in the footnote
Which of the following is not a TREC form?
1-4 family residential contract resale
New home contract
Sellers temp residential lease
Tesidential lease application
Residential Lease Application
What are the 6 promulgated contract
1-4 family resale, new home complete, new home incomplete, unimproved property(just land), Farm and Ranch, condo resale
What is the number of hours for a broker to renew his license
18 hours every 2 years
