Texas Real Estate Exam Prep Flashcards

Texas Real Estate Exam Prep Flashcards All of the following are acceptable sources for reproduced copies of promulgated forms EXCEPT The answer is handwritten copies that are similar to the mandatory forms. Numbered copies obtained from the Commission, photocopies obtained from the Commission, and computer-driven printed copies following Commission guidelines are all acceptable sources for reproduced copies of standard forms. Handwritten copies of a form are not an acceptable reproduction method.A married couple is selling their homestead, owned as community property. For the deed conveying the property to be valid, who must sign it?The answer is both husband and wife. For the deed conveying homestead and/or community property to be valid, both husband and wife must sign the deed.The statement "a broker must be employed to recover a commission for services" means that The answer is the seller must have signed an agreement to pay a commission to the broker for selling the property. A person in this state may not sue to recover a commission for the sale or purchase of real estate unless the promise or agreement on which the action is based, or a memorandum, is in writing, and signed by the party against whom the action is brought or by a person authorized by that party to sign the document.An unlicensed individual who engages in one activity for which a real estate license is required is subject to which penalty?The answer is administrative penalty of up to $5,000 in addition to other penalties provided by law. Administrative penalties cannot exceed $5,000 per day unless the license holder has a history of previous violations.The previous occupant of a listed property died of complications related to AIDS. Which statement is TRUE about the listing broker?The answer is the broker must not disclose this fact to potential buyers. A broker must not disclose whether a previous or current occupant has or had HIV/AIDS.Which of the following is NOT treated as an addendum to a promulgated TREC contract form?The answer is Information About Brokerage Services. The Information About Brokerage Services is not an addendum and should not be attached to or made a part of the offer/contract.Which of the following is NOT addressed by a TREC-promulgated contract?The answer is a purchase using a contract for deed. There is no TREC form for a contract for deed.Which of the following would generally be considered community property?The answer is property acquired during marriage by purchase from income earned from separate property.Absent an agreement to the contrary, income earned from separate property is considered community property.Therefore, property acquired during marriage by purchase from income earned from separate property is considered community property.Generally, property acquired by either spouse during marriage is The answer is community property. All property acquired by either spouse during marriage, with the exception of that acquired by gift, inheritance, or a personal injury lawsuit, is

community property.

A broker may appoint one or more license holders to communicate with and carry out instructions for each party when the broker is acting as The answer is an intermediary. A broker may appoint one or more license holders to communicate with and carry out instructions for each party when acting as an intermediary.A broker acting as an intermediary may appoint The answer is one or more license holders to each of the parties to communicate with and carry out instructions for each of the parties. If the parties consent, the broker may appoint to each party one or more license holders associated with the license holders to communicate with and carry out instructions of the parties.If disciplinary action is taken against a sales agent, the Commission may also take action against The answer is the sales agent's broker. If disciplinary action is taken against a sales agent, the Commission may also take action against the sales agent's broker.A real estate broker or sales agent may show an unlicensed person her appreciation for a referral by giving the unlicensed individual The answer is a non-cash gift as long as the retail value does not exceed $50. The Texas Real Estate License Act prohibits a real estate license holders from paying a commission, fee, or other valuable consideration to a person who is not licensed as a sales agent or broker for services as a real estate agent.With a few exceptions, the statutory written statement concerning broker duties and representation must be provided to a party who is NOT represented The answer is at the time of the first substantive dialog with the party concerning a specific property. A statutory written statement (typically contained in the Information about Brokerage Services form) must be delivered to a party who is not represented at the first substantive dialogue with the party.The maximum tenancy that may be addressed in a TREC Seller's or Buyer's Temporary Lease is The answer is 90 days. The maximum tenancy that may be addressed in a TREC Seller's or Buyer's Temporary Lease is 90 days.A real estate sales agent mayThe answer is accept compensation only from the broker under whom the sales agent is or was licensed. A sales agent may not accept compensation for a real estate transaction from a person other than the broker with whom the sales agent is associated or was associated when the sales agent earned the compensation.A license holder who was concerned about the condition of a property decided to insert an "as is" clause into the standard contract. According to the Deceptive Trade Practices Act, which statement is TRUE?The answer is the license holder is still responsible for making material misstatements or concealing known property defects. According to the Deceptive Trade Practices Act, the license holder is still responsible for known structural defects that are material to the transaction even when a property is being sold "as is." According to the TREC One- to Four-Family Residential Contract (Resale), who is responsible for paying the owner policy of a title insurance fee?The answer is the party specified in the contract. The TREC One to Four Family Residential Contract (Resale) provides that the seller furnish to the buyer an owner policy of title insurance at either the seller's or the buyer's expense.

When negotiating a listing, a real estate license holder is obligated to advise a property owner concerning the license holder's The answer is opinion of the property's market value. When negotiating listings, license holders must share with property owners their true opinion of the property's market value.Which of the following is NOT true regarding trust accounts?The answer is sales agents are permitted to have trust accounts. Trust accounts must be in the broker's name. A sales agent is not permitted to have a trust account.Which statement is TRUE about TREC real estate contract forms?The answer is they are promulgated or approved by the Texas Real Estate Commission. The Broker-Lawyer Committee drafts and revises TREC real estate contracts, which are then either promulgated or approved by the Texas Real Estate Commission.A mechanic's lien claim arises when, on the owner's order, a general contractor has performed work or provided material to improve a parcel of real estate but has not been paid. Such a contractor has a right to The answer is record a notice of the lien and file a court suit within the time required by state law. A general contractor who has performed work or provided material to improve a parcel of real estate but has not been paid has the right to record a notice of the lien and file a court suit within the time required by state law.Which of the following additions may be made to a TREC-promulgated form?The answer is the broker's name may be inserted in any blank provided for that purpose. The business name or logo of a broker may appear at the top of a form outside the border, and the broker's name may be inserted in any blank provided for that purpose. Under TREC rules, license holders shall make additions or deletions required by the principals.What is a legal proceeding brought by a party to a contract against another party to compel action called for in the agreement?The answer is a suit for specific performance. A suit for specific performance is a legal proceeding brought by a party to a contract against another party to compel action called for in the agreement.Which of the following is TRUE regarding a test taker who fails one portion of the exam?The answer is they only need to retake the failed portion. If a test taker fails one portion of the exam, they only need to retake the failed portion.Which of the following is considered community property?The answer is income earned from separate property during marriage. Property acquired during marriage by gift or inheritance, property acquired during marriage by settlement or judgment for personal injury, and the sales proceeds from separate property sold during marriage are all considered separate property.When no promulgated form meets the needs of a particular transaction, the license holder may use which of the following?The answer is a form created and approved by a Texas licensed attorney. In a transaction for which no standard form exists, a license holder may use a form for the particular kind of transactions involved that is prepared and approved by an attorney-at-law licensed in Texas.TREC is composed ofThe answer is six real estate brokers and three members of the public. TREC is composed of nine members (six