Ch. 12 Flashcards - TREC-approved real estate sites? The answer is ...

Ch. 12 Flashcards Must real estate properties for sale be listed only on TREC-approved real estate sites?The answer is no, TREC only has authority over license holders. While license-holder websites and surrogates must adhere to TREC standards, consumers must beware of fly-by-night sites that attempt to lure buyers and investors.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?The answer is 5. If a property is sold, a copy of each certificate of mold remediation issued for the property during the five years preceding the sale must be given to the buyer.If a seller lists property with a broker who is a member of a multiple listing service, which of the following applies?The answer is the listing broker may offer differing amounts of compensation to subagents and to buyer agents. A multiple listing agreement is an exclusive listing (either an exclusive right to sell or an exclusive agency), which obligates the listing broker to distribute the listing to other brokers who belong to that multiple listing service (MLS).Usually, submission of a listing to the MLS carries with it an offer of cooperation and compensation to any cooperating broker who produces a buyer. Cooperation can take the form of offers to subagents, buyer agents, or both, at the listing broker's discretion. All offers of cooperation must be accompanied by an offer of compensation; however, the listing broker may offer differing amounts to subagents and to buyer agents.The amount of commission is determined by The answer is negotiation between the seller and the broker. It is a violation of antitrust laws for brokers to collaborate in setting commissions or fees.If the seller's disclosure notice is NOT given before the execution of the contract, the purchaser may, within seven days after receiving the notice, terminate the contract The answer is for any reason. If the buyer is not given the notice before signing the contract, the seller is given a limited time to provide the notice. If the notice is given within that time frame, the buyer may still terminate the contract for any reason within seven days after receiving the notice. If the notice is not given in that time frame, the buyer may terminate the contract any time before closing.The commission goes to the listing broker no matter who sells the property in The answer is an exclusive right-to-sell listing. This is the only listing type where the broker is guaranteed a commission when the property sells, no matter who sells it-even if the seller sells his own property. The seller employs only one broker in an exclusive right-to-sell listing.There are an assortment of reasons why sellers might "fire" their listing agent. What are legitimate reasons for listing agents to "fire" their client?The answer is all of these. Listing a property does not mean the sales agent is shackled to the owner. If the owner does not behave in a serious and businesslike manner to

get the property sold, the listing agent may have grounds to terminate the listing.

Which sellers must provide a seller's disclosure notice to a buyer on or before the effective date of a contract?The answer is seller of residential property of not more than one unit. Sellers of residential property of not more than one unit must deliver a seller's disclosure notice to a buyer on or before the effective date of a contract. The notice does not have to be given in a transfer by court order, foreclosure sale, bankruptcy, a mortgagee or beneficiary, a will or trust, one co-owner to another, one spouse to another, a governmental entity, or a builder in the sale of a new residence.Is it possible for consumers to discriminate against some telemarketing calls?The answer is yes, consumers may direct individual companies to stop calling them. Even if their number is not on a national or Texas registry, consumers may advise individual companies to stop calling and companies must maintain that list.Under what conditions may a business fax unsolicited advertisements to other commercial enterprises?The answer is if the receiving enterprise has agreed to receive faxes or has made its fax number known through its website or other method. On the first page of any commercial fax, the sender must include a method that allows the receiver to be removed from the fax list.A listing contract isThe answer is a contract of employment. It is a contract between a broker and a landowner to sell real estate on the owner's terms, within a given time, for a commission. If the broker is to be able to collect a commission, a listing must be in writing and must include the seller's signed promise to pay the commission. The broker also must prove that a valid license existed at the time the commission liability arose and that the statutory title notice was given as required. A listing would terminate on the death of the broker but not the sales agent.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?The answer is both of these. The notice must be given before execution of the contract. If it is not, the purchaser may terminate the contract and, in some cases, sue the seller for damages and reasonable attorney's fees.A listing contract contains the nature of the agency relationship with the seller, the date of possession, and The answer is the protection period. The protection period establishes the broker's right to a fee if the owner sells the property to one of the broker's prospects during the time frame stated in the listing agreement. The listing also includes commission information and the beginning and ending dates of the listing contract.Under what conditions may a seller refuse to pay a listing broker?The answer is 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. A seller should be warned that failure to pay the compensation stated in the listing agreement could lead to litigation for breach of contract.

Which ultimately decides the listing price of the property?The answer is seller. The broker may help the seller determine the price by performing a comparative, or competitive, market analysis (CMA).Do you have to be a licensed real estate broker or sales agent to sell real estate in Texas?The answer is no, an unlicensed friend, neighbor, or even stranger can sell property but may not be compensated for the services. Consumers are at peril if they allow an unlicensed individual to assist in their real estate transaction because that individual is likely to be uneducated about the transaction process and legal requirements. Nor is there likely to be legal recourse against that individual should there be a failure in the transaction.Penalties for violating do-not-call regulations may beThe answer is fines up to $11,000 per call, or $16,000 if made from a robocall system. Penalties for such calls are extraordinarily high because the calls typically are pervasive and the public considers them pernicious violations of privacy.EPA Renovation, Repair, and Painting (RRP) regulations require which action?The answer is 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. EPA Renovation, Repair, and Painting (RRP) regulations require that renovation or repair work disturbing more than 6 square feet of surface area for interior work or 20 square feet for exterior work must be carried out by a trained and certified renovator. Property owners performing the work on a home they occupy do not have to be certified. However, if the property is to be sold or rented, a certified renovator must be used for repairs exceeding the stated limits.When taking listing information, why must sales agents be careful what they write about such facilities as churches and schools?The answer is because of fair housing laws. Although listing proximity to a specific school or church might be factual, it also might suggest the area is poor or more dangerous than another area.An area of controversy that might come up regarding a listing is The answer is number of rooms and accurate measurements. Is it a library or another bedroom? Is it 20-by-18 or 18-by-18 with an alcove.? Inaccurate measurements can kill deals or certainly become sources of argument between buyer and seller. Agents should measure rooms themselves.The Texas Real Estate Commission recommends that brokers and sales agents considering online promotions or telemarketing campaigns do what?The answer is contact appropriate legal counsel to stay within guidelines. While such campaigns can contact a maximum number of people in a short period, they also have a high risk of angering some consumers, which could result in lawsuit.