Texas License Law and Unauthorized Practice of Law Flashcards
If both the buyer and seller agree to have the real estate professional write a contract for their specific situation and will put this request in writing, can the agent then write the contract for the customers?
Not under any circumstances
No, but this is by practice and not by law
Yes, because the customers put it in writing
Yes, TREC allows such exceptions, whether in writing or not
Not under any circumstances
Which of the following is true?
A real estate licensee may practice law (limited)
A real estate licensee may advise his or her clients
A real estate licensee may draw up contracts for use
A real estate licensee can hire an attorney to represent his or her client’s interests
A real estate licensee may advise his or her clients
What is an error in the meaning of words, laws, or facts which causes one or both parties to enter into the contract without fully understanding the outcomes or responsibilities implied by the contract?
Fraud
Actionable Deception
Mistake
Reverse Coercion
Mistake
Which of the following is a real estate agent not allowed to do?
An agent acting properly should keep the contract neat.
An agent acting properly should be sure that all the blanks are filled in correctly.
An agent acting properly should always include all names including nick names and fictitious names as well as full names for the parties of a contract.
An agent acting properly should always double-check all the numbers and figures.
An agent acting properly should always include all names including nick names and fictitious names as well as full names for the parties of a contract.
How many lawyers are on the Broker-Lawyer Committee?
2
4
6
8
6
Which of the following statements is FALSE regarding reformation?
The written agreement is changed to reflect the parties’ original understanding.
It is granted only if one party was unaware that the writing did not conform to the actual agreement.
The agreement may be rewritten.
One of the parties assigned his duties under the contract to a third party.
One of the parties assigned his duties under the contract to a third party.
How many public members are on the Broker-Lawyer Committee?
2
1
3
None
1
Prohibition for practicing law
(b) A licensee may not:
(1) practice law,
(2) offer, give or attempt to give legal advice, directly or indirectly;
(3) give advice or opinions as to the legal effect of any contracts or other such instruments which may affect the title to real estate;
(4) give opinions concerning the status or validity of title to real estate; or
(5) attempt to prevent or in any manner whatsoever discourage any principal to a real estate transaction from employing a lawyer.
The contract is binding
(n) A licensee shall advise the principals that the instrument they are about to execute is binding on them.
Licensees should orally express that the document the buyers and sellers are about to sign will bind them to the details contained in the document. When two parties agree to purchase and sell a real property, there are no days for automatic rescission. The contract becomes effective upon signatures by both parties and the notification of that agreement.
The Broker-Lawyer Committee is made up of
six lawyers appointed by the president of the state bar of Texas and six real estate brokers appointed by the Texas Real Estate Commission.
There is also one public member who is appointed by the governor.
The main law that governs the real estate industry is the Texas Real Estate License Act.
This dictates what a real estate salesperson can and cannot lawfully do. Should a salesperson act outside of the guidelines, they could end up practicing law without a law license.
Licensees are not permitted to write their own contracts
instead they must only use TREC promulgated forms
Licensees are also prohibited from:
Practicing law
Offering, giving or attempting to give legal advice, directly or indirectly
Giving advice or opinions as to the legal effect of any contracts or other such instruments which may affect the title to real estate
Giving opinions concerning the status or validity of title to real estate
Attempting to prevent or in any manner whatsoever discourage any principal to a real estate transaction from employing a lawyer.
Licensees are still required to share facts with the principles in a transaction
This includes any negative condition about the property or known problems that may affect the title of the property.
Unilateral Mistakes
are errors in wording, law or fact that are held by only one party and not the other. These mistakes are more common than others and usually mean that one party is mistaken about the subject matter or terms contained in a contract.
