unit 7 Flashcards
if the commission revokes a license after making a payment from the real estate recovery trust account to satisfy all or part of a judgment against a license holder, the license holder is not eligible to receive a new license
until the amount paid from the real estate recovery trust account on the license holder’s account has been fully repaid, with interest, by the license holder
it is permissible for a real estate agent to
fail to specify a definite termination date in a contract to perform property management services
aside from a criminal background check, what other check may the commission make-even before someone applies for a license?
moral character, to make sure the prospective license holder has satisfied any outstanding conflicts with the law
the responsibility for ensuring that a sales agent license is timely renewed belongs to
the sales agent
what happens if more than $3.5 million is in the trust fund at the end of the year?
the excess money is transferred to the general fund of the state
how many members are appointed to the Texas Real Estate Commission (TREC)?
nine members: six real estate professionals and three public members
a person is not eligible for appointment as a public member of the commission if that person owns more then how much of an interest in an entity regulate by or receiving funds from the commission?
10%
A person acting as a real estate broker, real estate sales agent, or a right-of-way agent without a license or registration is guilty of a Class A misdemeanor that is punishable by a fine of
not more than $4,000.
Obtaining a license through the use of fraud is just cause for
a broker’s license to be revoked or suspended.
May a sales agent receive a “finder’s fee” directly from a lender in exchange for sending potential mortgage business to the bank?
No, receiving referral fees from lender is illegal, plus sales agents may only be compensated through their sponsoring broker.
To be eligible for a license, an applicant must be a resident of Texas
at the time of filing the application.
If the Commission proposes to deny, suspend, or revoke a person’s license or certificate of registration, the person is entitled to a hearing conducted by
the State Office of Administrative Hearings.
Which isNOTa condition for a broker’s maintaining an action to collect a commission or other compensation for an act as a broker or sales agent?
The agreement to pay had a definite termination date and stipulated the listing price and an acceptable date for closing and transfer of possession.
Which is an aggrieved personNOTrequired to show at a Texas Real Estate Commission (TREC) hearing on an application for payment from the real estate recovery trust account?
That the judgment debtor (license holder) filed for bankruptcy before the hearing
The Commission will pay no more than what amount from the real estate recovery trust account for claims against any one license holder until the fund has been repaid in full by the license holder?
$100,000
Does a person appointed by the governor to the Texas Real Estate Commission have to be trained before joining the governmental body?
Yes, appointees must understand license law and regulation of the industry, must understand open meetings law, and must be acquainted with TREC audits.
Who is barred from collecting from the trust fund?
The spouse of a license holder
The child of a license holder
License holders deprived of a commission
Aaron wants to work in the real estate industry but does not have a license. Which career choice is available to him, with compensation, before he obtains a real estate sales agent license?
Working for a builder to sell properties the builder constructed
Are real estate brokers and agents obligated to advise consumers that the trust fund is available to offset losses caused by malfeasance by a license holder?
Yes, real estate brokers are obligated to post notices to consumers that the fund is available.
Applicants for a real estate license must be how many years of age, at a minimum?
18
If a person violates the License Act, the Commission may assess an administrative penalty in an amountNOTto exceed
$5,000 per day for each violation.
- It is permissible for a real estate agent to
disclose to a buyer that the seller will accept a price less than the asking price if the agent represents the buyer.
If a sales agent associated with or acting for a broker makes a material misrepresentation to a potential buyer concerning a significant defect known to the license holder, the broker is liable to which parties?
The Commission, the public, and the buyer
Under which circumstances would a broker’s license be required?
Selling, exchanging, purchasing, or leasing real estate for another person for compensation
In which situation would a broker’s license be required?
A person handles short sales for other persons for compensation.
Which notice or disclosure isNOTrequired by the Texas Real Estate Commission (TREC)?
A written notice to a purchaser that a death occurred on a property by natural causes, suicide, or accident unrelated to the condition of the property
A complaint against a license holder was filed with the Texas Real Estate Commission (TREC). After a hearing, the Commission determined that the license holder had violated the Real Estate License Act. Which isNOTa disciplinary action available to TREC?
Requiring a license holder to pay a consumer triple damages
Members of the Texas Real Estate Broker-Lawyer Committee hold office for staggered terms of how many years?
Six
An aggrieved person may only be reimbursed from the real estate recovery trust account if the reimbursement is ordered by
the court that entered the judgment.
The Commission mayNOTprohibit a license holder from using for the sale, exchange, option, or lease of an interest in real property a contract form that is prepared by an attorney and required by the property owner or prepared
by the property owner.
Which isNOTa violation for which the Texas Real Estate Commission (TREC) may suspend or revoke a license or take other disciplinary action?
Failing to advise a buyer or a seller regarding the validity of title to real estate
The amount for each fee collected by the Texas Real Estate Commission is stipulated in
the rules of the Texas Real Estate Commission.
Brokers are required to maintain, and to place all money received from clients in, which of the following?
Escrow or trust account
A member may be removed from the Commission if absent for more than how many of the regularly scheduled meetings?
One-half
An agent received a cash deposit for a client’s property. The agent placed the deposit in his personal checking account and then wrote a check to his trust account. For this action, the agent was found guilty of
commingling.
To receive a real estate license in Texas, potential sales agents must complete course work on contract law. Which of the following are included in the course?
Offer and acceptance of a contract, remedies for breach of contract, and the unauthorized practice of law
Paid executives for real estate trade associations—such as the Texas Association of REALTORS®—are not permitted to serve on the Real Estate Commission. Who else isNOTallowed to be a commissioner?
A person whose spouse is an officer, employee, or executive of a real estate trade association
Managers or consultants to businesses or organizations that have business before the Commission
A person who is registered as a lobbyist who may have occasion to represent special interest before the Commission
If the Texas Real Estate Commission (TREC) determines that the facts revealed in the investigation of a complaint against a license holder do not warrant disciplinary action but, if not corrected, could lead to further complaints and ultimately to potential disciplinary action, what may TREC do?
Issue an advisory letter
- Which listing-related activity would a real estate agent legally be permitted to perform?
Depositing earnest money in a title company rather than holding it in a trust account maintained by the broker for that purpose
The Texas Real Estate Commission’s powers and duties include allEXCEPT
setting commission or compensation rates for sales transactions in Texas.
Does a person appointed by the governor to the Texas Real Estate Commission have to be trained before joining the governmental body?
Yes, appointees must understand license law and regulation of the industry, must understand open meetings law, and must be acquainted with TREC audits.
