Texas Real Estate License Act Flashcards

Texas Real Estate License Act Flashcards Under which circumstances would a broker's license be required?Selling, exchanging, purchasing, or leasing real estate for another person for compensation Applicants for a real estate license must be how many years of age, at a minimum?18 The responsibility for ensuring that a sales agent license is timely renewed belongs to The answer is sales agent. TREC sends a renewal notice to each license holder 60 to 90 days before the expiration of a license. It is a license holder's responsibility to know the license expiration date, to complete required SAE (sales agent annual education) or CE ( continuing education) courses before that date, and to make a timely renewal. Failure to do so will result in an increased renewal fee-up to two times the normal fee. If a license has been expired for six months or longer, the person may be required to obtain a new license by submitting to reexamination and complying with any additional education requirements.How many members are appointed to the Texas Real Estate Commission (TREC)?

The answer is nine members: six real estate professionals

and three public members. All nine members of TREC are appointed by the governor with the advice and consent of the senate. They serve staggered six-year terms, with the terms of three members expiring January 31 of each odd-numbered year. A person is not eligible for appointment as a public member if the person or the person's spouse is registered, certified, or licensed by a real estaterelated occupational regulatory agency or is employed by or receives funds from TREC. In addition, an officer, employee, or paid consultant of a Texas real estate industry trade association cannot be a member of TREC.Obtaining a license through the use of fraud is just cause for The answer is a broker's license to be revoked or suspended. After a hearing or other settlement procedure, the Commission will render a decision. If the evidence establishes a violation of the Real Estate License Act, the Commission may impose disciplinary action, which may include a reprimand, suspension of the license, revocation of the license, probation of the license, an administrative penalty, or a combination of possible actions. In addition, the Texas Real Estate Commission (TREC) can order a license holder to pay a refund to a consumer, may issue a cease and desist order, may seek an injunction, and may recover civil penalties on behalf of the state. TREC may file a complaint with law enforcement officials; the decision of

the courts could be a fine and possible imprisonment for a Class A misdemeanor.Sally wants to enter the hotel/motel management business.She recognizes that the properties are classified as real estate. Which of the following applies?The answer is Sally will not be required to hold a real estate broker's license. Among other persons not required to have a real estate license is (1) an onsite manager of an apartment complex; (2) an owner or the owner's employee who leases the owner's improved or unimproved real estate; and (3) a party to a transaction involving (a) the sale, lease, or transfer of a mineral or mining interest; (b) the sale, lease, or transfer of a cemetery lot; (c) the lease or management of a hotel or motel; or (d) the sale of real property by a trustee under a power-of-sale clause in a deed of trust.

Aside from a criminal background check, what other check may the Commission make-even before someone applies for a license?Moral character, to make sure the prospective license holder has satisfied any outstanding conflicts with the law It is permissible for a real estate agent to The answer is fail to specify a definite termination date in a contract to perform property management services. Failure to specify a definite termination date that is not subject to prior notice in a contract is generally grounds for license suspension or revocation. However, lease contracts and contracts to perform property management services do not require definite termination dates.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.The Texas Real Estate License Act is administered byThe answer is the Texas Real Estate Commission. The Texas Real Estate Commission consists of nine members appointed by the governor with the advice and consent of the senate-six broker-members and three public members.Which is an aggrieved person NOT required to show at a Texas Real Estate Commission (TREC) hearing on an application for payment from the real estate recovery trust account?The answer is that the judgment debtor (license holder) filed for bankruptcy before the hearing. The real estate recovery trust account reimburses members of the public who have been financially injured or damaged by the actions of a real estate broker or sales agent, a certificate holder, or an employee or agent of a license holder.Persons desiring to benefit from the trust account first must obtain a final money judgment against the offending license holder. Then, to receive payment from the account, they must appear at a TREC hearing and show that they are not a spouse of the license holder and not a license holder seeking to recover a commission. Those seeking reimbursement from the recovery trust account must also be able to show the amount of money that might be realized from the sale of assets of the license holder and the balance remaining on the judgment after the sale of assets. The license holder is not required to file for bankruptcy before the hearing for a recovery from the trust account.To be eligible for a license, an applicant must be a resident of Texas The answer is at the time of filing the application. To be eligible to receive a license, an applicant must be at least

18 years of age, a citizen of the United States or a lawfully admitted alien, and a resident of Texas. Applicants must also satisfy the Commission as to their honesty, trustworthiness, integrity, and competency (as measured by the state exam). (§ 1101.354)