Texas Real Estate Law Flashcards

Texas Real Estate Law Flashcards Penalties for violationSuspensionRevocation Sales people may receive compensation through who?Through the principal broker How does an agent misrepresent or deceive the public?- failure to disclose material fact or latent defect- misrepresenting or making false promises- deceptive practices- Advertising in any form that is misleading- fail to identify an advertisement as being from a licensed broker or sales person, the brokerage name or record, or designated broker.- Guarnteeing or promising future profits from the resale of real estate- FAiling to disclose the following- the brokerage relationship on who the broker or sales person represents- acting as an undisclosed principal in teh sale or purahse of real estate Is puffing a violation?Not considered a violationNot allowed as a defense under the law.Unthinking consumer may take statement as fact, which can get you in trouble.How long is certificate of registration?What education is required?Can it be revoked?

• yearsno educationCan be revoked

Professional Ethics and Conduct...All licensees must comply with cannon When making a claim from the recovery trust account, what is the max recovery amount per licensee, regardless of the number of claims?

100,000

What test taker may not do:- get questions or answers- remove or attempt to remove questions or answers from the exam site- Provide or attempt to provide exam questions to another person What is the Purpose of the DTPA?Protect consumers from false, misleadings, and deceptive business practicess andprovide procedures for compensation if the consumer can prove they were a victim When changing brokerage happens, what happens to your license?It goes inactive until you have submitted a new principal broker sponsorship application and required fee.What are terms for education Standards advisory commitee?No terms Typically all commissions are paid to who? The brokerage firm, which then splits the fees with all employed brokers and salespersons The licensee is responsible for accurate representations and disclosure of material facts even if, if the contract says AS IS Certification of Registration-A person who receives compensation for selling, buying, transferring, or leasing rights of ways in connection with telecommunication, utility, railroad or pipeline companies If a salesperson leaves a brokerage firm what happens?The license has to return their license to TREC where it is held until they are notified taht you are under a new broker.

If a sales person licesnse is suspended what must happen?Sales person must notify principal broker.Salesperson License-No experience Required- 18 years old- Must be a resident of Texas at time of filing- work under supervision of a principal or sponsoring broker.Who administers?Testing service What must sales person provide to trec at renewal?Evidence to trec that SAE was completed additional 6 semeseter hours or 90 classroom hours and 18 semester hours or reaches 270 classroom hours How long are commission members appointed for? Staggered 6 year terms.Trec Recognizes what two levels in the responsibilities of licenses?SalesPerson License When listing or attempting to list, these things will cause an inevstigation to occur.

• failure to give a definite termination (exception property

management agreement)- offering to sell or lease without consent of the owner- includes placing signs or advertising- advertising a listing that is not the brokerage firm or brokers.- offering terms other than those authroized by the owner.- attempting to solicit a seller of an active listing to terminate and list with the soliciting broker.Who designates commission chairperson?The governor.How are salespersons tracked by Trec?tracked through their principal broker. Changes to location need to be update with brokerTh What are some common ways that real estate professionals get into trouble on offering legal advice?

• telling how to take title to real property- Validity of any

documents including contracts and deeds- marketability of title to real property.Hearings....a hearing that allows licensees to stand up for themselves after being investigated and punished. - What is the charge for practicing without a license?Class A Misdemeanor When does license expire?2 years from the date the license is issued.What are the remedies against a licensee if funds are used?commission may revoke/probation a license if the commission makes a payment from teh real estate recovery trust account to satisfy all or part of a judgement against the licenses Broker and salesperson licensees must complete how many hours in every 2 years period of MCEs?15 hours every two years.What is purpose of Recovery Trust Account? to reimburse consumers who suffer damages caused by real estate licensees, certificate holders, or their empployees.The Texas Real Estate Commission has how many members?96- Brokers3- General Public Members How is the account funded?From License Fees- 10 dollars at time of application If a brokers license is suspsended what must happen?- all the firms salespersons and parties to existing contracts- remit the escrow or trust money (if held by broker) in accordance with instructions of contract principals.

Education Standards Advisory committee make up: 12 members7 active licenses with 5 years experience4 educational members1 public member Competency-A Licensee must be knowledgeable, informed, and exercise judgement and skill.the 15 MCE hours must include what?6 hours of classroom TREC created courses(3 hours legal update(3 Hours Ethics UpdateBalance of 9 hours can be taken through educator Delegated Licensee-A licensee/broker who manages one or more licenses for 6 months or longer.How are members of the commission put on the commission?Appointed by the governor, with the advice and consent of the state senate.Can licensees draft documents that transfers or otherwise affects an interest in real property?NO!Principal brokers must have what?A Fixed office, and obtain a branch office license for each additional brokerage office they maintain.When will the renewal after probation or revokation be ended after trec pays out money from the Recovery Trust Account?After full amount is repaid plus interest.Deceptive or misleading advertising includes: Innacurate ads of a material factMisrepresenting any property, terms, values, services, or policies.Failing to remove an ad about a listed property within a reasonable time after closingFAiling to clearly disclose the permitted uses of the property What can Trec not due?They dont mediate or settle commissions or other disputes between brokers or licensees.They dont recommend individual licensees to the public.they cannot Send Licensees to jail.If the person manages or mentors one or more licensees for a six month period or longer, what is required?Broker Responsibility Courseto become designated licensee Licensees and Firms operating under an assumed name must meet what requirements?

• file assumed name with county clerk in teh county that

you operate- Must advice trec of assumed name within 30 days of the assumed name being used.Punishemnts in regard to advertising- punished ads that mislead or decieve the public- tends to create a misleading impression- Fails to identify the advertising is from a licensed broker or sales person.Penatlies taht can happen to use by TREC? - revoke- Cancel (trec admits its wrong)- Suspend License.Recovery may include what?Economic damages, and an amount not to exceed treble (three times) damages.Licensees may be charge if:They misrepresent or fail to disclose a material factmake statemetns not characterized as advice, judgement, or opinion.when making a claim from recovery trust account, what is maximum amount to be recovered per transaction regardelss of number of claimants?

50,000

What happens if trec declines a notice?- Trec must immediately give written notice and- appeals are allowed- probationary period may be used.Education Standards Advisory Committee-Reviews and revises education curriculum What is the makeup of the TREC real estate advisory committee?13 members6 lawyers appointed by presient of the state bar of TExas6 Brokers appointed by teh commission1 public member appointed by goveror Can a sales persona pay a commission to another licensee?only with the salespersons principal broker.Fidelity-A licensee while acting as an agent as a fiduciary puts the principals interest above all other, including the agents.Investigations caused by handling trust funds poorly.- commingling or converting funds- disbursing trust funds prior to closing or termination- failure to property account for all trust funds- failing to keep trust funds in a texas bank or title company.If the amount drops below 1 million, what happens?All license holder, including inactive, or assessed a 10 to bring the account back up to 1.7 million dollars.What are complete requirements of a salesperson? 12 semester or 180 hours1- 4 semesters of 60 hours of principles of real estate2- 2 Semesters or 30 hours each of agency, contracts, contract forms and addenda, and real estate finance What is practicing without a license punishment? 4000 FineAnd or Up to one year in Jail What are terms that TREC real estate advisory committee ?Staggered 6 year terms(individual person of public terms is not a staggered term) Investigations started by commissions1- receving commissions from a party to a transaction without consent of the other parties2- paying commissions to unlicensed persons Recovery Trust AccountFunds must total what? 1 million dollars If teh brokerage changes address, the principal broker must apply to Trec in how many days?10 days.Puffing-Making a statement anyone should understand as an exageration (best view in teh world) What is the law that governs all real estate licensess?Texas Real Estaet License Act, and sets the powers of TREC.Most waivers and disclaimers are void under what? DTPA MCE Hours-Mandatory continuing education requirements that apply to all licensees after the first renewal What powers does trec have in regard to hearings? - Trec has power to subpoena witnessess and docs- failure to obey court ordre may be punished by being in contempt Appeals to a trec decision are made to who? A district court.Can damages for mental anguish be included? If teh conduct of the defendant was committed knowingly or with intention.What are two portions of exam?State and National80 National30 State Specific Exemptions to License Law-What are the common exemptions to license law?Completing real estate activities without a license.(host at open house)(licensed auctioneer)(attorney licensed in Texas)(attorney in fact)(court order, will, or trust eg.