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Question 1

An agency relationship may be terminated for a number of reasons. Which wouldNOTbe just cause for terminating a listing agreement?

Answer 1

The death of the listing sales agent

Question 2

If a sales agent is at a parent school night and talks with other parents about “what they do for a living,” at what point might the sales agent be obligated to provide an agency disclosure?

Answer 2

If a parent happens to zero in on a specific property the sales agent has listed

Question 3

May a seller refuse to a pay a commission if a buyer refuses to pay full price for a property?

Answer 3

The listing agreement properly signed by the seller and the broker is a legal document that sets compensation.

Question 4

Which of the following prohibits email-based marketing of a real estate listing if the subject line of the advertisement contains false, misleading, or deceptive information?

Answer 4

CAN-SPAM Act

Question 5

Must real estate properties for sale be listed only on TREC-approved real estate sites?

Answer 5

No, TREC only has authority over license holders.

Question 6

A seller lists his home with a sales agent for a local large brokerage. Another sales agent working for the same brokerage brings a buyer. Is the seller obligated to pay a full commission under an exclusive right-to-sell agreement?

Answer 6

The listing agreement is the ruling document, meaning that the seller would owe the commission regardless of where the buyer came from.

Question 7

EPA Renovation, Repair, and Painting (RRP) regulations require which action?

Answer 7

Sellers and landlords must hire certified renovators to complete repairs that disturb more than 6 square feet of surface area for interior work or 20 square feet for exterior work.

Question 8

If a seller lists property with a broker who is a member of a multiple listing service, which of the following applies?

Answer 8

The listing broker may offer differing amounts of compensation to subagents and to buyer agents.

Question 9

Sellers and landlords must disclose to buyers and tenants any knowledge of lead-based paint in properties built before

Answer 9

1978.

Question 10

Should a buyer agent discourage a buyer from looking at property that doesNOTmake a seller disclosure notice readily available?

Answer 10

The buyer agent should neither encourage nor discourage the buyer but should advise extreme caution.

Question 11

A listing contract is

Answer 11

a contract of employment.

Question 12

The governing body of a municipality or county has undertaken an improvement project, such as landscaping, erecting fountains, or installing special lighting, that benefits a definable part of the community. In turn, the owners of those properties pay an annual assessment to cover the costs and maintenance. If a property being sold is subject to such an assessment, the purchaser must be given

Answer 12

a notice of obligations related to public improvement district (PID).

Question 13

If the broker has done nothing to market the property, the seller may be able to terminate the listing due to

Answer 13

abandonment by the broker.

Question 14

What is a real estate advertisement under TREC rules?

Answer 14

An advertisement is any form of communication by or on behalf of a license holder designed to attract the public to use real estate brokerage services.

Question 15

After mold damage to a property has been remediated, a seller is required to give a copy of the certificate of mold remediation to a buyer. For how many years does this obligation extend?

Answer 15

5

Question 16

Is it possible for consumers to discriminate against some telemarketing calls?

Answer 16

Yes, consumers may direct individual companies to stop calling them.

Question 17

According to surveys, what is the strongest venue for selling real estate?

Answer 17

The internet

Question 18

An area of needless controversy that seems to come up regarding many listing is

Answer 18

number of rooms and accurate measurements.

Question 19

There are an assortment of reasons why sellers might “fire” their listing agent. What are legitimate reasons for listing agents to “fire” their client?

Answer 19

Failure to consistently keep the property clean and “showable”
Repeated rejection of showing opportunities because of inconvenience
Failure to make full disclosures of serious property issues

Question 20

Because home builders are not required to provide property disclosures, should buyers also bypass home inspections?

Answer 20

No, new homes can have serious flaws that can be detected in home inspections.

Question 21

If a seller believes—but is not certain—that a friend wants to buy his house, what kind of agreement should he sign with a broker?

Answer 21

An exclusive agency listing

Question 22

The amount of commission is determined by

Answer 22

negotiation between the seller and the broker.

Question 23

Under what conditions may a seller refuse to pay a listing broker?

Answer 23

If the listing broker failed to meet the terms of the listing contract, such as widely market the property, negotiate effectively, or generally show a lack of competence in the transaction

Question 24

The Texas Real Estate Commission recommends that brokers and sales agents considering online promotions or telemarketing campaigns do what?

Answer 24

Contact appropriate legal counsel to stay within guidelines

Question 25

Which ultimately decides the listing price of the property?

Answer 25

Seller

Question 26

A seller of unimproved property located in a certificated service area of a utility service provider, must give written notice to a purchaser of which of the following?

Answer 26

That extension of water or sewer services might require additional expense to the purchaser
That there might be a delay in the utility’s ability to provide services

Question 27

Can a real estate licensee with an agency agreement with a buyer collect a commission on a deal with a seller who is unrepresented (for sale by owner)?

Answer 27

Yes, if there is an agreement in writing to be compensated by either the buyer or the seller

Question 28

May sellers disclose the fact that a sex offender lives in a neighborhood?

Answer 28

Yes.

Question 29

Penalties for violating do-not-call regulations may be

Answer 29

fines up to $11,000 per call, or $16,000 if made from a robocall system.

Question 30

If a seller of vacant land doesNOTinclude in the contract a disclosure notice regarding the possible liability of the purchaser for additional taxes, the responsibility for additional taxes and interest belongs to

Answer 30

the seller.

Question 31

When taking listing information, why must sales agents be careful what they write about such facilities as churches and schools?

Answer 31

Because of fair housing laws

Question 32

Which sellers must provide a seller’s disclosure notice to a buyer on or before the effective date of a contract?

Answer 32

Seller of residential property of not more than one unit

Question 33

A homeowner gives open listings to three brokers. The brokers

Answer 33

each have the opportunity to earn the entire commission.

Question 34

If the seller’s disclosure notice isNOTgiven before the execution of the contract, the purchaser may, within seven days after receiving the notice, terminate the contract

Answer 34

for any reason.

Question 35

If a property is being transferred through a will to a family member, is a disclosure necessary?

Answer 35

No, a property transferred via a will does not need a disclosure.