Texas State Portion Real Estate Exam Flashcards

Texas State Portion Real Estate Exam Flashcards Each commissioner must be:both qualified voters and residents of Texas. Only six of the members must be licensed real estate brokers.what individuals are exempt from the real estate license requirement?An employee who rents their employer's property For what is there NO promulgated form?contract for deed what is the best way to extend the closing date on a contract?use the Texas Real Estate Commission 39-4 "Amendment" and have the buyers and sellers sign A contract may be terminated by:default, performance, mutual agreement, rescission, or by the fact that it is impossible to perform.Pamela, who lives in a suburb in which many homes are rented, decides to open a rental agency in order to assist her friends in finding suitable renters. Pamela's conduct is unacceptable because it involves an activity for which a real estate license is required.A claim from the recovery fund is paid only if: the licensee has no assets that can be used to satisfy a judgment.A broker who places earnest monies in the company's operating account is guilty of what?commingling A broker may do which of the following for an individual without actually representing the individual?A broker may obtain financing, assist in locating a property, and prepare a contract or lease for an individual without representing the individual.A licensee avoids mentioning negative important facts that he or she knows to be true in his or her presentation to a

potential purchaser of real property. The licensee:

may be charged with misrepresentation by omission.The commission has the authority to revoke a

salesperson's license if he or she:

deposits a buyer's earnest money into his or her bank account.An agency relationship may be created in all of the

following ways except:A. by ratification.B. by estoppel.C. by

apparent authorityD. by assumed authority

• An agency relationship may be created in all of these

ways except for by assumed authority.What is the composition of the Broker-Lawyer Committee?Six broker members are appointed by the Texas Real Estate Commission; six attorney members are appointed by the President of the State Bar of Texas. The appointees serve a term of six years with one-third of them being appointed every two years.Broker Bea recently entered into a listing contract with Seller Sally. Broker Bea just learned that Sally is actually

17 years old and not married. The listing contract is:

voidable at the option of the minor.When a broker decides to terminate his or her sponsorship of a salesperson, the broker must?Notify the commission in writing of the termination and return the salesperson's license to the commission Who may revoke or suspend a Texas real estate license?Texas Real Estate Commission (TREC) What should a real estate broker do with licenses coming into his or her possession?prominently display them in his or her place of business

Buyer Betty gives Broker Bob an earnest money deposit.

According to Texas law, Broker Bob should:

hold the earnest money deposit in a secure place in the broker's office until the offer is accepted and the contract is signed. He or she then must deposit the funds in a separate escrow account by the end of the second business day after the contract is signed.A community property with rights of survivorship agreement

must:

doesn't need to go through probate, must be signed by both spouses, must include the property description, be in writing, contain wording that makes evident the intent of survivorship, and be recorded in the county courthouse.How many classroom hours are required to apply for a salesperson license?180 hours What is a counteroffer?A rejection of an offer and a presentation of new terms and/or conditions. It is not valid until both parties have signed it.Which of the licensed entities does not fall under the regulatory authority of the Texas Real Estate Commission?The Texas Appraiser Licensing and Certification Board has jurisdiction over state licensed and certified appraisers. In addition to licensing brokers and salespersons, the Texas Real Estate Commission is responsible for licensing real estate inspectors and for regulation of companies that sell and issue residential service contracts ("home warranties").(Article 65736, Vernon's Texas Civil Statutes.Which agency is responsible for the contract forms used by Texas licensees?The Texas Real Estate Commission what type of relationship exists between the broker and sales associates?General agency A salesperson may split his or her commission with:anyone that is not a licensed salesperson or broker in Texas.Which type of listing agreement allows the broker to keep all proceeds from the sale that exceeds a certain amount?A net listing.The official effective date of a sales contract is:the date the last party signs the contract.What is true of a mechanic's and materialman's (M&M) lien?Homesteads are not protected against M&M liens, the lien is valid as of the first day work began on the property, and all owners of the property must sign before work is begun.what is the distinction between sales contracts and option contracts?One characteristic of sales contracts is mutual obligation.Option contracts lack mutual obligation. The buyer in an option contract is not obligated to buy.If a salesperson's license is revoked, to whom may he or she appeal the decision?The district court Each TREC member is appointed for a minimum term of

____ .

• years, or until a successor is appointed.

Repair or remodeling of a property generally adds to its worth. In recognition of the role contractors and suppliers play in increasing the value of a property, in many states they are assured payment for their goods and services by

being able to file a/an:

mechanic's lien against the property.

For a two-year lease, a landlord may record, instead of the

actual lease, a:

Memorandum of lease. For more then one year lease Which type of listing agreement is now prohibited under Section 15 of the TRELA?Open listing

Separate property is:property owned before marriage, settlement from a

personal injury suit, gifts and inheritance after marriage, and property agreed in writing to be separate Six of the members of the Broker-Lawyer Committee are

selected from:

The State Bar of Texas.If Broker Bob, the listing agent, negotiates an offer that is presented by Broker Bill, who works for another company

and represents a buyer, the brokers will be acting as:

single agents since they both have agreements with their respective principals.Full disclosure of material facts by a licensee falls under which of the obligations of a licensee?Duty of Integrity A licensee in Texas may not practice law, unless licensed and authorized to do so in Texas. Practicing law includes

altering contracts, or drawing up:

a deed, deed of trust, will, or other written instrument that may transfer or affect the title to land.If a tenant has not paid the rent on time, how much written notice must a landlord give the tenant to pay the rent before the landlord may file an action to evict?three days after giving written notice of rent due.Responding to or facilitating inquiries about the ancestry or familial status would put the licensee in the position of violating Federal and state laws as well as the Texas Real Estate Commission rules. Facilitating such inquiries could result in suspension or revocation of one's license.Which of the following is true of a licensee purchasing or selling his or her own property?It is legal as long as full disclosure is made.The written disclosure of agency relationships is not

required if the:

proposed transaction is for a residential lease for not more than one year and no sale is being considered. Disclosure is also not required if the licensee meets with a party who is represented by another licensee.An agency relationship may be terminated by expiration of time, agreement, rescission, abandonment, or by the death of either party.

An agency relationship cannot be created by: inherent authority

No one seems to own the vacant lot next to Henry's house, so he has used it for a garden for many years now. He may have a good chance of going to court and obtaining ownership by adverse possession.A real estate licensee must notify the real estate program

manager if:

A licensee must notify the real estate program manager within 20 days of receiving any criminal complaint, information, indictment, or conviction in which the licensee is named as a defendant; or entry of a civil court order, verdict, or judgment, against the licensee in any court of competent jurisdiction in which the subject matter therein involves any real estate or business-related activity by the licensee.

What penalties may a licensee who breaches the agency relationship face?A licensee who breaches the agency relationship may be sued for damages, termination of the contract, and/or non-payment of the commission.A real estate salesperson may accept compensation from?The salesperson's sponsoring broker only What happens when an applicant for licensure has failed to pass the competency examination within the prescribed six-month period?The applicant must submit a new application meeting all current requirements.

A broker is obligated by law to treat his or her client:honestly

Which of the following people would need to obtain a real estate license if they were involved in a real estate activity?A. the executor of an estateB. a court-appointed guardianC. a trustee of the bankruptcy courtD. one who sells lots in a mobile home park

• The sale of land/lots is an act of brokerage and requires

that one have a license if he or she is not the owner of the lot. The other three answers are listed as people who do not need a license in Section 3 of the Texas Real Estate License Act.What is required to obtain a broker's license in Texas?license must be at least 18 years of age, have been actively engaged as a licensed salesperson for at least 2 years, and complete 900 hours of approved coursework A property owner may claim a homeowner's exemption in Texas on a residence that is both owned and occupied.The exemption reduces the assessed value of the residence by $7,000 dollars A broker must maintain a place of business in the state of Texas. If the location changes, the broker has how long to notify the commission?The broker must notify the commission of any change of address within 10 days.If a broker is working as an intermediary to both parties in a transaction, the broker may collect commissions from both

parties if:

each party knows exactly how much commission is collected from the other party and receives full disclosure of all facts.What penalties may be imposed on an unlicensed individual for a single act of brokerage for which a license is required?$4,000 fine plus other penalties provided by law The nature of the relationship between a principal and

agent can be described as:

fiduciary.Who is credited with actually securing a written offer?Procuring cause The commission will investigate complaints submitted up to how long after the alleged incident?

• years

Dave defaulted on his mortgage loan and the property was ordered to be sold at a foreclosure sale. Dave may redeem

his property:

A property owner in default may redeem his or her property up until the property is sold, under the equitable right of redemption.In Texas, real estate licenses expire:on the last day of the anniversary month of issuance, what may render a contract void?one or both of the parties to the transaction is mentally incompetent, if the contract was for an illegal purpose, or if fraud was involved.what would be exempt from the seller disclosure requirements of Section 5.008 of the Texas Property Code?Property that has never been occupied, property acquired by a lender as a result of borrower default, and property being sold by a duly appointed/approved administrator or executor of an estate are specifically listed in the list of