TEXAS STATE PORTION REAL ESTATE EXAM

• | Page

TEXAS STATE PORTION REAL ESTATE EXAM

CORRECT SOLUTIONS.

Who is responsible for any wrongs done by a salesperson while acting within the scope of the agency agreement? - correct answer- The broker is liable for the wrongdoing of his or her salespersons. The principal is liable for any wrongs committed by the broker while acting within the scope of the agency agreement.

what is the distinction between sales contracts and option contracts? - correct answer- One characteristic of sales contracts is mutual obligation. Option contracts lack mutual obligation. The buyer in an option contract is not obligated to buy.

A listing agreement must contain: - correct answer- a standard

street address is sufficient.

If the commission investigates a complaint and determines that an individual's real estate license should be suspended or revoked, the licensee is entitled to a hearing before the commission within how many days after the commission reaches its decision? - correct answer- A licensee who faces 1 / 4

• | Page

suspension or revocation of their license is entitled to a hearing within 30 days of the commission reaching their decision.

Which of the licensed entities does not fall under the regulatory authority of the Texas Real Estate Commission? - correct answer- The Texas Appraiser Licensing and Certification Board has jurisdiction over state licensed and certified appraisers. In addition to licensing brokers and salespersons, the Texas Real Estate Commission is responsible for licensing real estate inspectors and for regulation of companies that sell and issue residential service contracts ("home warranties"). (Article 65736, Vernon's Texas Civil Statutes.

A licensee in Texas may not practice law, unless licensed and authorized to do so in Texas. Practicing law includes altering

contracts, or drawing up: - correct answer- a deed, deed of

trust, will, or other written instrument that may transfer or affect the title to land.

What penalties may a licensee who breaches the agency relationship face? - correct answer- A licensee who breaches the agency relationship may be sued for damages, termination of the contract, and/or non-payment of the commission.

Undisclosed dual agency is: - correct answer- a violation of the

TRELA. 2 / 4

• | Page

What is the composition of the Broker-Lawyer Committee? - correct answer- Six broker members are appointed by the Texas Real Estate Commission; six attorney members are appointed by the President of the State Bar of Texas. The appointees serve a term of six years with one-third of them being appointed every two years.

A licensee must disclose any existing agency relationships to a

new client. This disclosure: - correct answer- may be done

orally or in writing.

A broker may do which of the following for an individual without actually representing the individual? - correct answer- A broker may obtain financing, assist in locating a property, and prepare a contract or lease for an individual without representing the individual.

A real estate licensee must notify the real estate program

manager if: - correct answer- A licensee must notify the real

estate program manager within 20 days of receiving any criminal complaint, information, indictment, or conviction in which the licensee is named as a defendant; or entry of a civil court order, verdict, or judgment, against the licensee in any court of competent jurisdiction in which the subject matter 3 / 4

• | Page

therein involves any real estate or business-related activity by the licensee.

Pamela, who lives in a suburb in which many homes are rented, decides to open a rental agency in order to assist her friends in finding suitable renters. Pamela's conduct is - correct answer- unacceptable because it involves an activity for which a real estate license is required.

The sole broker of a brokerage firm has his or her real estate license suspended for two years. What would happen to the licenses of the salespersons affiliated with this broker? - correct answer- If the broker's license is suspended or revoked, the salespersons' licenses are made inactive and must be returned to the commission. A salesperson's license may be made active when the salesperson is sponsored by a new broker.

Which agency is responsible for the contract forms used by Texas licensees? - correct answer- The Texas Real Estate Commission

A community property with rights of survivorship agreement

must: - correct answer- doesn't need to go through probate,

must be signed by both spouses, must include the property description, be in writing, contain wording that makes evident

• / 4