Texas Real Estate Exam State Flashcards

Texas Real Estate Exam (State) Flashcards mediationa mediator hears both sides of a dispute and tries to help the parties come to an agreement salesperson's sponsoring brokerresponsible to the TREC, the public, and the clients for the acts of a salesperson persons who must have a real estate license 1.attorneys who participate in a commission split2.auctioneers involved in a real estate transaction3.apartment locators4.real estate salespeople5.the designated officer of a licensed real estate corporation or the designated manager of a licensed Real Estate Limited Liability Company (the designated one is a broker)1-4 MUST BE SPONSORED BY A BROKER

AND RECEIVE COMMISSIONS ONLY FROM THAT

BROKER

homesteadparcels of real estate owned and occupied by families (one per person or family)-a statutory estate in Texas-protected

from forced sale by all creditors except: mortgage, property

taxes, mechanics and materialmen's liens, and homeowner associations-designated to protect the interests of homeowners-if foreclosed on for unpaid property taxes, the owner has 2 years to redeem the property (6 months for

unpaid HOA fees)-max size: urban 10 acres, rural 200

acres-derive from the Texas Constitution Seller's Temporary Lease Addendum TREC 15-3 and Buyer's Temporary Lease Addendum TREC 16-3 used when the lease period is 90 days or less arbitrationan arbitrator hears both sides of a dispute and tells the parties what to do steps in obtaining a real estate license 1. meet the educational requirements2. submit an application with or without a sponsoring broker3. submit the required fees4. pass the state exam5. demonstrate integrity Seller's Disclosure of Property Condition must be given to a buyer before he signs an offer to make that offer binding on the buyer-if the buyer does not have the disclosure before signing, he has 7 days to terminate his offer, after receiving the disclosure-disclosure required in most states, but not all (required in Texas) earnest money depositif a broker accepts an earnest money deposit, and acts as an escrow agent, the money must be deposited in a trust account by the close of business of the 2nd business day after the execution of the contract-broker must keep records of this account for 4 years intestate successionthe laws that govern how property passes when a person dies without a will or with a will that makes only a partial

distribution of his/her property-courts will appoint an administrator to settle the estate-property will be distributed according to the Laws of Descent and Distribution-heirs will have Title by Descent

licensing requirements-18 years of age-resident of Texas at the time of application-comply with legal residency requirements (not an illegal alien) subagenta licensee who represents the seller while being sponsored by a broker other than the listing broker-working with a buyer customer rather than a buyer client TREC Consumer information form 1-1-notifies the public of the recovery fund-applies to both real estate licensees and inspectors-must be displayed in the broker's office-must be included in listing and buyer representation agreements, as well as any invoices for services new listinga licensee has 5 days to enter a new listing into the MLS Texas Real Estate Commission (TREC)-created in 1949-purpose: to administer the provisions of the License Act-authority to make rules and regulations-9 members (3 represent the general public, 6 are real estate brokers)-all appointed by the governor and approved by the Senate-serve 6 year terms-has the power to subpoena books, records, and witnesses-has the power to issue or revoke Real Estate Licenses Real Estate Recovery Fundcreated by TREC to pay aggrieved persons who suffered a monetary loss due to unscrupulous acts of the licensees-persons can receive up to 3 times the amount of money lost-when an amount is paid out of it, the license of the individual is automatically revoked or suspended without a hearing (cannot be recovered until the fund has been repaid with interest) Broker Lawyer Committee-writes promulgated contract forms-13 members (6 are brokers appointed by TREC, 6 are lawyers appointed by the President of the State Bar Association, 1 is a public member appointed by the governor) RE inspectorsmust use promulgated forms for residential inspections party accepting the final changethe last party to sign a contract-broker is responsible for filling in the effective date- individual has four years from the effective date of a contract to file a complaint with TREC regarding the licensee involved (must be written and signed) Texas Deceptive Trade Practices-Consumer Protection Act

(DTPA)

allows an aggrieved consumer to hold a seller of goods and services liable for damagesresulting from deceptive or unfair trade practices-allows for the recovery of triple damages-does not apply to commercial properties over $500,000-individual has 2 years from the discovery of the deception to file a complaint contingency clausea clause in a contract requiring a condition to be met backup offers-all must be presented to the seller, order does not matter-to become effective the previous contract must be

terminated and the backup buyer must pay any option fee, name any option period, and deposit any earnest money with an escrow agent-option fee must be paid independently of any other consideration