Real Estate Texas State Exam Flashcards

Real Estate Texas State Exam Flashcards TREC has the power to order witnesses to appear and/or produce records of documents for its investigations and hearings. This is called subpoena power. If a license holder fails to respond to a subpoena, what can TREC do?TREC can file suit with the Attorney General to enforce the subpoena An unlicensed assistant prospects for leads for their agent employer. Who could be fined, and/or have a license suspended or revoked by TREC?the unlicensed assistant, agent and sponsoring broker According to the TREC contract form, when must the title company deliver the title commitment to the buyer?20 days from the receipt of the contract A buyer has submitted an offer to purchase a seller's property without receiving the seller's disclosure of property condition. How many days does the buyer have to terminate the offer once he receives the disclosure?7 Which of the following statements about Earnest Money Deposits and Option Fees is FALSE?Earnest money and option fees cannot be combined in one check from the buyer Who is eligible for a TVLB loan?eligible spouses A broker is using his/her own trust account. When must the broker deposit the earnest money into that account?By the close of the second business day after the broker receives the funds Which of the following actions is NOT a violation of the Texas Real Estate License Act?A broker offers a guaranteed buy back of a property for a set price, if the purchaser is not happy with the investment after a two-year period of ownership Broker Bob has a listing contract and a buyer's representation agreement, and so is acting as intermediary in a transaction. The buyer tells Bob that if he is successful in purchasing the property, he plans to buy all the surrounding property too. What should Bob tell the seller?Nothing, as this is confidential information from the buyer A broker sponsors only one associate license holder. He has a listing and a buyer client who wants to purchase that listing. What is true?He can do intermediary without appointments Which of the following TREC forms does not include the phrase, "time is of the essence"?The Addendum for Coastal Area Property What is an example of something that could be entered in paragraph 11?The information from an TR addendum What is required in order for a broker to act as an intermediary?The broker must have the written permission of the seller and the buyer, including information on how the broker is to be paid A buyer and seller have signed a Texas sales contract.Prior to signing, the buyer did not receive the Seller's Disclosure. If he receives it within the negotiated number of

days in the contract, the buyer can:

terminate the contract for up to 7 days after he receives the disclosure

According to the TREC Addendum for Reservation of Oil, Gas, and Other Minerals, if a property owner is uncertain about the full extent of the Mineral Estate, who can determine this?An attorney When must the option fee be delivered?The buyer must deliver the option within 3 days after the effective date of the contract What TREC promulgated form should be incorporated into the contract when a buyer wants to obtain possession before the closing and funding of the transaction?The Buyer's Temporary Lease Addendum A broker has a listed property. The owner mentions that a neighbor is interested in selling. The broker meets with the neighbor and secures a second listing. Both listings sell and the broker earns a commission on each. The broker would like to thank the owner of the first listed property for this referral. How can the broker thank the seller?He cannot pay the seller any commission at all Landlords in Texas have how many days to settle deposits with tenants after move out?30 days What would NOT cause license revocation by TREC? A second DUI conviction When must representation be disclosed and in what form?Orally or in writing at first contact An agent is aware of a foundation issue that was not disclosed on the Seller's Disclosure. She discusses it with her broker who advises the agent to let the Seller fill out the Disclosure. Who is in violation of DTPA?Both the agent and broker are in violation Which of the following is the responsibility of the broker?The listing advertisements of the sales agents he sponsors Who is responsible for filling in the effective date of the real estate sales contract?The broker John has listed the property at 17 Oak St. The sellers have received and accepted an offer from the buyers. The buyers have received the survey and it shows an encroachment that the sellers did not previously disclose.The buyers are not willing to purchase the property in this condition. What action on the part of the buyers must be taken?The buyers have the number of days mentioned in the Paragraph 6D to address survey problems with the sellers

The primary purpose of TREC is to:protect the public

A Texas broker may pay a commission to:A broker associate

A broker has signed an exclusive agreement to represent a seller. Which of the following is a requirement of the minimum level of service in this situation?The broker must present any offer to or counteroffer from the client TREC can investigate the actions of a license holder at its own motion. Under what other circumstances can TREC investigate a license holder?If they have a written, signed complaint no more than 4 years old The total hours required at the end of your SAE renewal

period consist of:

270 qualifying hours plus 8 hours of Legal 1 & 2 (278 total) Fidelity is one of the Canons of Professional Ethics within the Rules of the Commission that means which of the

following?Being scrupulous and meticulous in the performance of your functions

A buyer delivers funds for the option fee and earnest money to the title company within 3 days of the effective date of the contract. What is true?The funds will be applied first to the option fee and then to the earnest money

All approved 18-hour CE classes include: 8 hours of legal update

A broker has appointed associates to work with the parties to a transaction in which the broker is the Intermediary.Which of the following statements is FALSE about this?The broker can give advice to both parties, but cannot give opinions to either In the event of a conflict between the statutory duties of Intermediary and the common law duties of dual agency of a broker, which takes precedence?Statutory Intermediary Which of the following can an HOA ban?The posting of 4'x6' political sign The option period ends:at 5:00 pm on the day mentioned in the contract A buyer's agent rebates a portion of their commission to a buyer. Who needs to approve this?the sponsoring broker Which statement about Texas Homestead protection is

FALSE?

Homestead protection will prevent foreclosure for unpaid property taxes If a broker wants to terminate sponsorship of an agent what is required?Notify the agent in writing and return the license to TREC immediately How many properties can an unlicensed investor sell in a year?unlimited A license holder in Texas can:Prepare a contract addendum for a client per their instructions Which of the following statements about disclosure of representation is FALSE?Disclosure of representation is at first substantive dialogue Regarding the option fee in the TREC 1-4 Family Resale Contract, what is true?it must be an amount discussed/agreed to by the buyer and seller How long does the buyer have to deliver the Earnest Money Deposit to an escrow agent?within 3 days after the effective date of the contract An appointed associate under Intermediary: Can give advice and opinions to one party to the transaction Homestead protection will NOT prevent the forced sale of

the property due to:

unpaid ad valorem taxes Which of the following actions are grounds for suspension or revocation of your license by TREC?Failing to list an expiration date in an employment contract John sold his waterfront property to some buyers and provided the Notice of Coastal Area Property. The house on the property was behind the vegetation line at the time of the sale. Several months after the sale, a hurricane caused a considerable amount of beach erosion, and the structure is now seaward of the vegetation line. What is true?The state can force the removal of the structure TREC rules require a license holder to disclose his dual role if he is representing himself in a transaction. TREC

also requires a license holder to disclose if his client is his:

Spouse, child or parent