Principles of Real Estate in Texas I - Unit 7 Flashcards

Principles of Real Estate in Texas I - Unit 7 Flashcards Each applicant for the renewal of a license must disclose in the license application whether the applicant has entered a plea of guilty or nolo contendere to a felony.True - The statement is true. Each applicant must also disclose in the license application whether the applicant has been convicted of a felony and the time for appeal has elapsed or the judgment or conviction has been affirmed on appeal. This disclosure must be provided even if an order has granted community supervision suspending the imposition of the sentence. (§ 1101.352) CE renewal hours must contain 15 hours of legal topics.False - The answer is false. CE renewal hours must

contain at least eight hours in nonelective legal topics: a

four-hour legal update course and a four-hour legal ethics course. In addition, a broker who sponsors a sales agent, the designated broker of a licensed business entity that sponsors sales agents, or a broker or a sales agent who supervises another license holder must attend at least six hours of broker responsibility education each two years, which may be used to meet CE requirements. (§ 1101.455) What happens if more than $3.5 million is in the trust fund at the end of the year?The answer is the excess money is transferred to the general fund of the state. Essentially, the fewer the misdeeds and the lower the judgments against the industry, the better off all the state's citizens will be.To begin working in the real estate industry, a person must initially obtain The answer is a sales agent's license. A sales agent is associated with a licensed broker for the purpose of helping a broker conduct real estate business. A broker's license is required for any person who, for compensation or the promise of compensation, lists or offers to list; sells or offers to sell; buys or offers to buy; and negotiates or offers to negotiate-either directly or indirectly-for the purpose of bringing about the listing, sale, exchange, purchase, option to purchase, auction, rental, or leasing of real estate. A minimum of four years' experience as an active licensed sales agent is required before a person may take the broker's license exam.Who is barred from collecting from the trust fund?The answer is all of these. The trust fund is established to compensate the losses of "aggrieved persons." License holders, their spouses, or their children may not recover from the fund, although attorney fees may be paid.Once appointed to the Texas Real Estate Commission, a member may not be removed if that member does NOT maintain the required qualifications for membership, so long as the individual was qualified at the time of appointment.False -The statement is false. A member may be removed from the commission if that member (1) does not have the qualifications required for appointment; (2) does not maintain the required qualifications; (3) is ineligible for membership as a result of the person's affiliation or the

spouse's affiliation with a Texas trade association in the real estate industry; (4) cannot discharge the required duties for a substantial part of the term; or (5) is absent for more than half of the regularly scheduled commission meetings, unless excused by a majority vote of the commission. (§1101.057)

To be eligible to receive a real estate license in Texas, a person must have a high school diploma or its equivalent

(GED).

False - The statement is false. At the time of application, however, potential license holders are required, among other things, to be at least 18 years of age, citizens of the United States or lawfully admitted aliens. (§ 1101.354) The Commission may suspend, but not revoke, a license if the license holder fails to honor, within a reasonable time, a check issued to the Commission after the Commission has sent by certified mail a request for payment to the license holder's last known business address according to Commission records.False - The statement is false. The Commission may suspend or revoke a license for this violation, although it is not required to limit its response to these two options; the Commission may choose to take other authorized disciplinary action instead. The License Act contains a list of approximately 50 reasons TREC can suspend or revoke a license or discipline a license holder. (§ 1101.652) As soon as a sales agent applicant has passed the state exam, that person may begin listing, selling, or managing real property for others for compensation.False - The statement is false. The applicant must first secure a sponsoring broker, submit the appropriate forms to TREC, and receive a license from TREC. (§ 1101.351) The Texas Broker-Lawyer Committee must develop and implement policies that separate the policymaking responsibilities of the commission from the management responsibilities of the executive director and staff.False - The statement is false. The Texas Real Estate Commission must develop and implement policies that separate the policymaking responsibilities of the commission from the management responsibilities of the executive director and staff. The Broker-Lawyer Committee drafts and revises standard contract forms to be used by license holders. (§ 1101.155) May individuals ask TREC to make a moral character check on them before actually applying for a real estate license?The answer is yes, moral character checks can precede the actual licensing of an individual. Individuals can save a good deal of time and effort if they know in advance whether TREC would approve them for licensing.When applying for reimbursement from the real estate recovery trust account, the aggrieved person does NOT have to take into account the remaining balance due on the judgment after the debtor's assets have been sold or applied to the judgment.False - The statement is false. The aggrieved person must show the amount that may be realized from the sale of real or personal property or other assets liable to be sold or applied to satisfy the judgment and the balance remaining due on the judgment after application of the amount that may be realized from the sale of assets. (§ 1101.607) The Texas Real Estate Commission may NOT suspend or revoke the license of a real estate license holder who accepts, receives, or charges an undisclosed commission, rebate, or direct profit on expenditures made for a principal.False - The statement is false. The Commission may suspend or revoke the license or take other disciplinary action. The License Act contains a list of approximately 50 reasons TREC can suspend or revoke a license or discipline a license holder. (§ 1101.652) A broker who maintains more than one place of business in the state of Texas must obtain a branch office license for each office.True - The statement is true. If a broker maintains more than one place of business within the state, the broker must apply for, pay the required fee for, and obtain a branch office license for each additional office the broker maintains. (§1101.552) The Commission may NOT prohibit 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 The answer is by the property owner. In addition, TREC Rule 537.11(a) sets forth three additional exceptions to the requirement that license holders use forms prepared by the Texas Real Estate Broker-Lawyer Committee and adopted

(promulgated) by the Texas Real Estate Commission: (1)

transactions in which the license holder is functioning solely as a principal, not as an agent; (2) transactions in which an agency of the U.S. government requires a different form to be used; and (3) transactions for which no standard contract form has been promulgated by TREC.