Texas Real Estate Licensing Exam Prep Purvis Flashcards

Texas Real Estate Licensing Exam Prep (Purvis) Flashcards What is the subject of Form 1-4?The form states that real estate firms are licensed and regulated by TREC and any complaints or inquiries should be directed to the Commission When a broker terminates the association and sponsorship

of a sales agent, the broker MUST:

immediately return the license to the Commission and immediately notify the sales agent in writing Statutory laws passed by the Texas Legislature: authorize administrative agencies to carry out provisions of the law When an individual engages in a real estate brokerage

activity without holding a real estate license, TREC:

may impose a $1,000 fine for each day of unlicensed activity

A licensed assistant may:host an open house

When a real estate sales agent offers property for sale by

lottery, the practice is:

grounds for suspension or revocation of a license When someone who is not a license holder is employed by

a broker, he or she can:

prepare papers When a private citizen files a complaint with TREC, what is required when it is submitted?The complaint must be submitted in writing and signed by the complainant What is the education requirement for renewal of a broker's license?18 hours of CE A commission split can be paid to a non-resident broker

when the:

broker conducted the transaction from outside the state boundaries of Texas When a complaint is filed and an investigation is conducted, who is involved in the investigation?broker and sales agent The Commission form known as CN 1-4, the Consumer

Protection Notice, must be prominently displayed:

on the Internet website of any person licensed and regulated by TRELA Which entity establishes record keeping requirements for real estate license holders?State Government The requirement that you place the client's interests above your own interests is essential to which section of the Canons of Professional Ethics & Conduct?fidelity Who is NOT required to hold a real estate license?a family member who is helping another family member sell a home without compensation Before the first renewal of a sales agent's license, how many hours of SAE are required?90 hours of SAE qualifying education and 8 hours of CE A home inspection performed by a licensed inspector is a:limited visual survey and basic performance evaluation of systems in a home The Texas Real Estate Broker-Lawyer Committee: writes the content for promulgated contracts and addenda Real estate referral fees may be paid to an out-of-state

broker who:

practices brokerage activities within the state in which they are licensed and never within the boundaries of the State of Texas Who may you pay a referral fee?out-of-state broker

A non-resident broker may be paid commission be split

when the:

broker conducted the transaction from the state in which they are licensed The designated broker for a business entity licensed by TREC owns a 5% interest in the business entity. The designated broker must obtain errors & omissions

insurance policy in an amount of:

$1,000,000 per occurrence A licensed real estate broker may pay a commission to a:real estate licensed attorney in the State of Texas An attorney represents the buyer and prepares legal documents for the purchase of a property. Is the attorney entitled to payment of a sales commission in addition to legal fees?No

The action known as canvassing:requires a license if the call is made in Texas

When may you list a seller's home for sale? immediately after your sponsoring broker receives your license When a sales agent leaves the sponsorship of a broker, the

listings:

stay with the broker A home inspection must be conducted:and prepared within the promulgated Standard Inspection Report Form When the Real Estate Recovery Trust Account balance is below $1,000,000 the Commission may assess each

license holder:

a maximum of $10; bringing the balance to $1,700,000 After a license holder uses funds from the Recovery Trust

Account, he or she may be subject to:

license suspension The designated broker for a business entity owns less than 10% of the entity. What is the minimum amount required by TREC for the business entity's errors & omissions insurance policy?

$1,000,000

What is the responsibility of the license holder when the Commission has accessed funds in the Recovery Trust Account to pay a claim on behalf of the license holder?repay principal and interest to the Trust Account What Commission form is displayed in clear view in all real estate offices?Consumer Protection Notice (Form CN 1-4) Renewal of a broker's license is for a period of: 2 years and requires CE education How many hours of CE is a license holder allowed to carry-over to the next license renewal period?none When the agent opens a business in a name that is NOT his or her legal name, he or she must file an official

Assumed Name Certificate with the:

county clerk Which of the following may cause license suspension or revocation?advising the buyer to "take title" with a life estate and designate an heir for the remainder estate it is legal to split a commission with a non-resident broker:when the broker conducted the transaction from out of state When a new broker takes over sponsorship for a sales agent who was previously sponsored by a different broker, the sales agent may conduct brokerage activities under

sponsorship by the new broker:

when the request to sponsor information is submitted online with TREC

When the computer at your Pearson Vue testing center indicates a passing score on the licensing exam, are you authorized to practice real estate brokerage activities?No, you must wait until your broker has received your license A complaint against a real estate license holder must be

filed:

in written form The Texas Real Estate Commission is responsible for:adopting rules and enforcing real estate license laws When broker sponsorship for a sales agent is terminated,

the:

sales agent must be notified immediately and the license must be immediately returned to the Commission The actions of a license holder may result in a payment for damages from the Recovery Account on behalf of the licensee. When a consumer files a civil suit against a

license holder, the licensee should:

hire an attorney The MAXIMUM PENALTY for unlicensed brokerage is a

fine of:

$5,000

Which of the following is NOT required when submitting an application for licensure as a sales agent?broker sponsorship

The practice of real estate without a license is a:criminal offense

After a sales agent notifies the Commission and the existing broker of a change in sponsorship, the sales agent

may practice real estate activities when the:

Change of sponsorship is submitted to the Commission When is an agent required to provide disclosure of information concerning examination of title to the property by an attorney?when an offer is signed

A real estate license is not required to sell: manufactured homes

How many classroom hours of qualifying education (QE) credits will you have after your first license renewal?270

a rebate may be paid to a consumer/buyer: upon agreement of the parties

When a license holder fails to comply with a subpoena, the

Commission may:

enforce the subpoena through the Texas Attorney General May an attorney-at-law who participates in a real estate transaction be paid a real estate commission?No In order to apply for a real estate sales license, the

education requirement is two 30 hour classes in:

real estate principles The Consumer Protection Notice should be: placed on display in the reception area of a real estate broker's office

an unlicensed assistant may:not show property to a prospective purchaser

The process of combining a principal's funds within an

agent's funds is:

commingling Who may compensate a sales agent?one broker When commission disbursement arrangements have been

made, a real estate sales commission may be paid to:

the agent Which of the following is the most important part of real estate advertising?the broker's name When a previous client refers a purchaser to a real estate

agent, at the end of the transaction, the person is paid:

$50 since they are not licensed