Texas State Real Estate Exam Review

Texas State Real Estate Exam Review Questions And Answers 2022/2023

If an applicant for a sales license engages in a brokerage transaction, the applicant Correct Answer: may face criminal charges resulting in fine and or jail

An unlicensed assistant is hired to increase an agent's listing inventory. The assistant may... Correct

Answer: create marketing flyers and distribute the flyers door to door

An individual is exempt from real estate licensure in Texas if the individual is doing which of the

following... Correct Answer: being an on-site manager of an apartment complex

When a sales agent's sponsorship is terminated by his sponsoring broker, the broker must... Correct Answer: notify the sales agent of the termination in writing and return the license to TREC immediately

If an unlicensed individual provides a referral that ends in a closing, how can you repay them?

Correct Answer: With a $50 gift card (not cash)

A license holder, while acting as an agent for another, should... Correct Answer: Be scrupulous and meticulous in performing the agent's functions

When a broker is acting for more than one party, the broker should disclose Correct Answer: any known material defects on the property

In which of the following situations would Texas property code excuse the seller from delivery of the seller's disclosure notice regarding the condition of the property? Correct Answer: The property is being sold as a foreclosure

Agents disclosure representation must be made Correct Answer: in writing and orally

According to the TREC residential resale contract form, if termination option fee is paid, day one of the option period is Correct Answer: the day following the effective date of the contract

Your buyer-client insists on entering into a lease-purchase agreement. You must: Correct Answer: Recommend that the buyer seek the advice of an attorney

An agent has received a $75 check from a home warranty company. Can he keep the check? Correct Answer: Yes, if the agent provided the RSC disclosure and the broker authorize the payment to the agent

If a cash buyer would like to have an appraisal done to ensure that a property is priced at or below market value, the agent should: Correct Answer: Advise the client to talk to an attorney for the proper wording to put in the contract

If the buyer and seller agree to rely on an existing survey, the survey and the affidavit T-47 must be provided Correct Answer: Within the specified number of days of the effective date of contract

Produced with a Trial Version of PDF Annotator - www.PDFAnnotator.com

If either party to the contract breaches the agreement and is in default, can injured party terminate the

contract? Correct Answer: Yes

A license holder MUST use a TREC promulgated form except Correct Answer: the principal requires the use of another form

When must a property owner declare their primary residence as their homestead to get homestead

protection Correct Answer: never

A DTPA claim cannot be brought against a license holder for Correct Answer: giving incorrect advice or opinions

Before closing, if a buyer has not received the MUD disclosure, what option does the buyer have?

Correct Answer: revocation of the contract

A broker entered into a representation agreement with a buyer on the phone. The broker found a property for the buyer and was the procuring cause of the sale. The buyer has refused to pay the agreed commission. What can the broker do? Correct Answer: According to TRELA, there is no recourse for the broker

Which of the following is requested through the HOA Addenda? Correct Answer: a resale certificate

What information is contained in Paragraph 7D of the 1-4 Family Contract? Correct Answer: "as is" provision

What information is contained in Paragraph 11 (Special provisions) of the 1-4 Family Contract?

Correct Answer: business details

What type of information can you put in paragraph 11 of the 1-4 family Resale Contract? Correct

Answer: business details

An HOA wants to foreclose on a property owned by a solider on active duty. Based on the Serviceman's Readjustment Act what is true? Correct Answer: The VA must be notified before this foreclosure can proceed

Which of the following is NOT required for a back-up offer to become effective? Correct Answer: the back-up buyer must name his inspectors

A broker is not required to Correct Answer: Be sure to review all contracts prepared by license holders he sponsors

If a broker is using an assumed name, or DBA, this must be filed in: Correct Answer: In the county courthouse in every county where he has an office

What are the penalties for practicing an act of brokerage without a license? Correct Answer: Same as "a" plus civil suit for damages

Which of the following differentiates a Broker-Intermediary from a Sales agent-appointee? Correct Answer: The sales agent can give advice and opinions to one party in the transaction

When a broker markets his own property he should: Correct Answer: Inform the buyer that he is a license holder

Which of the following is considered community property? Correct Answer: Property acquired by husband and wife after marriage with labor

Marketing real property by guaranteeing a profit when it is resold is Correct Answer: Cause for suspension or revocation of licensure

The rules and regulations of TREC Correct Answer: have full force and effect of law

The Texas Real Estate Commission was created in 1949 primarily to Correct Answer: Enforce the TRELA

The standard contract forms adopted by the TREC Correct Answer: Must be used by real estate license holders in all transactions to which the forms are applicable

According to TREC, acting as a broker or sales agent without first obtaining a license is a Correct

Answer: Misdemeanor

A buyer and seller have signed a contract for the sale of the seller's property. The buyer has received the survey and is unhappy with some of the information. Which of the following actions should he pursue? Correct Answer: The buyer has the previously negotiated number of days to notify the seller of his concerns and ask seller to correct the problems

What power does the Commission have when a license holder fails to comply with a subpoena?

Correct Answer: file suit through the attorney general to enforce subpoena

When must disclosure of representation be made in order to comply with the law? Senate Bill 489 requires disclosure of representation to be made: Correct Answer: at first contact

A license holder in violation of the TRELA has received a summons from TREC that a hearing will be held regarding the possible revocation or suspension of his license. The license holder fails to respond to the summons. What will TREC do? Correct Answer: set a hearing in austin

What remedy is available in every TREC contract form for Breach of Contract? Correct Answer: suit for specific performance, seek such other remedies as may be permitted by law, or both

A license holder is working as a buyer's agent. Her buyer wants to take his contract to an attorney for advice. The license holder should... Correct Answer: give the contract to the buyer to take to his attorney

Which of the following would cause TREC to refuse to license an applicant? Correct Answer: Inability to demonstrate honesty, integrity, and trustworthiness to TREC

A tenant has vacated a rental property. He still owes rent. He has left personal property behind. The landlord cannot Correct Answer: attach the wages of the tenant for the rent owed

When a license holder has been assessed an administrative penalty by TREC as a result of TREC determining an infraction of its rules, how long does the license holder have to pay that penalty?

Correct Answer: 30 days

Which of the following statements about mold remediation is FALSE? Correct Answer: Only a licensed remediator can remove mold

In order to be certified as a mediator for the Texas Real Estate Commission, an individual must complete a course in Alternative Dispute Resolution (ADR). This course is Correct Answer: 40 hours

If a license holder, under CE requirements, renews on time without including the required education what will TREC do? Correct Answer: Consider the license active for an additional 60 days, during which time the license holder must complete the required education and pay $200 amount for fees and penalties

A broker has represented a seller in the sale of the seller's property. The property was listed for sale "as is", Caveat Emptor- buyer beware. The seller provided a seller's disclosure stating there were no known problems of any kind with the property. The property was sold to the buyer who agreed to the "as is" provision. After closing the buyer moved in and immediately discovered many serious problems with the property. He had an inspection done, and the inspector determined that the problems were not "new", but rather more were long standing. The buyer sued the seller and was able to have the sale reversed. Is the broker entitled to keep the commission earned on this sale?

Correct Answer: Yes

How many hours of Continuing Education can carry over from one license period to the next? Correct

Answer: none

In Texas a Homeowner's Asspciation can regulate and ban Correct Answer: privacy fences

How much E&O insurance is required, when a designated broker has less than 10% interest in the

LLC? Correct Answer: $1 million

A designated broker has a 30% interest in a partnership. How much E&O insurance is required?

Correct Answer: none

With regard to TREC investigating the actions of license holders against whom a complaint has been filed, which of the following would cause the complaint to receive priority treatment? Correct Answer: the complaint involves personal or financial harm to a consumer

Violation of the License Act is a Class A Misdemeanor. The criminal penalty could be a fine of up to

Correct Answer: $4,000