TREC State Exam Flashcards

TREC (State Exam) Flashcards How much time does a buyer have to address title concerns with the seller?The negotiated number of days in the contract.Appointed Associate under an Intermediary? May give advice or opinions to ONE party Who is responsible for filling in the effective date?The Broker What takes precedence; Statutory Intermediary or Common law dual agency Statutory Intermediary What happens if a Broker wishes to terminate sponsorship?He must notify the sales agent in writing and return the agents license certification to the commission immediately Who writes the promulgated contract forms? Broker Lawyer Committes Can a licensee rebate a portion of the commission to a client within a transaction?Yes How do you post IABS and Consumer Notice Post a link to a completely filled out TREC IABS form labeled Texas Real Estate Commission Information About Brokerage Service on your business website at least 10pt font (readily noticeable)Or post a link to the Consumer Protection Notice labeled "Texas Real Estate Commission Consumer Protection Notice" 10 pt font (readily noticeable) Who promulgates the Contract forms?TREC How long does a individual have to file a complaint with TREC?

• years from the effective date of contract, or the date of

the incident Can a Broker give advice/opinions to either party?No, they may only disclose facts about the property How can you reactivate your licneseapply through a broker,r pay 50$ and complete 18 CE if necessary What happens if structures are erected seaward of the vegetation line?The structure would be subject to a lawsuit by the state of Texas Removal Broker's License Educational Requirements 900 Classroom hours4 years of an active sales license3600 points - 300 points per sale-6 hour broker responsibility course Who writes promulgated contract formsThe broker Lawyer Committee Where are TREC hearings held?Austin, unless a license holder requests the hearing be held in their county How many members are in TREC9 Members6 Brokers3 General Public Sales Agent Educational Requirments180 qualifying course hours How long does TREC have to deny an application? There is no time limit; but once they decided to disapprove an application they must notify the applicant within 30 days People who do not have to have real estate licenses?-Texas Licenses attorneys not dealing with commission split. All other attorneys need to be licensed in the state of Texas-Anyone carrying out a foreclosure sale-Administrators and executors of wills-On-site apartment managers-Sales agent working for a builder-Cemetery lot sales agents-A person selling their

own property-Employee leasing or renting property for the owner How must an option fee be paid?Independently of any other consideration When can you place a for sell signafter obtaining WRITTEN permission of the owner How many hours must be maintained for first license renewal?270 hoursThe original 180 + 90 additional qualifying hours for renewal.

Can commission be paid to an unlicensed person? No What happens if a license holder fails to respond to a summons from TREC TREC will automatically schedule a revocation/suspension hearing When must money be deposited into a trust account by a Broker?By close of business of the second business day after the effective date of the contract What Does TREC have the authority to do? Make rules and regulations What happens to the licensee when TREC pays an amount out of the Recovery Trust Account The license of the individual may be revoked or suspended.The license may never be recovered until the account has been repaid with interest How much money can an aggrieved person receive from the recovery trust account?3x's the amount of money lost What must all ads containThe Broker or Company name What is the Real Estate Recovery Trust Account Created by TREC to pay aggrieved persons who suffered a monetary due to acts of a license holder Errors and Omissions InsuranceNeeded if a agent has less than 10% interest in a real estate business, with a minimum annual limit of $1 million per occurranceIf more than 10% of the business is owned then the required amount is $0 Who is the last party to sign a contract? The party accepting the final change What is the penalty for violation of the License Act?$5,000 per day for violation of the license act by any person; licensed or unlicensed When must a broker respond to sponsors sales agents or clients representing other parties in real estate transactions?Within 3 Calendar Days What happens if MUD indebtedness is not disclosed to the buyer prior to closing.The buyer can back out of the contract. The seller must deliver and the buyer must sign the MUD disclosure Where must the Consumer Information Notice 1-2 be displayed?A prominent place in the brokers office What happens if the Recovery Trust account exceeds 3.5 Million?The excess goes into the states general fund Intermediary without appointmentsA broker who works alone or who only sponsors 1 license holder Alternate ways to post IABS and Consumer Notice Post and image of the completed IABS or Consumer Protection form, and label the image TREC Real Estate Commission Information About Brokerage Service or Consumer protection notice. Post on FB, Twitter etc.Members of TALCB9 Members4 -Licensed Real Estate Appraisers4-General Public (appointed by the governor)And the exec. secretary of the Texas Veterans Land Board What happens if a person engages in real estate brokerage without having a secured license from TREC?Guilty of a class A misdemeanor, subject to a fine not more than 4K or imprisonment in the country jailThe broker who profited is liable for 3x's the amount recieved What is the max payments TREC will pay out of the Recovery Trust?100,000 per license holder and 50,000 per transaction

How can a broker obtain more than one place of BusinessThey must have a branch office license for each additional office at a cost of $50 per office How many members are on the Broker Lawyer Committee?13 Members6 Brokers - appointed by TREC6 Lawyers - appointed by state bar association1 public member appointed by the governor After how many days will a licensee become inactive after not submitting the CE 60 Days When can the buyer terminate a contract? When required repairs exceed 5% of the price TALCBregulates real estate appraisers and administers the Texas Appraiser Licensing and Certification Act Where must an assumed name be filed?The secretary of state. TREC, and local county clerk Who is required to have a real estate license? -Attorneys participating in a commission split-Auctioneers involded in any part of a real estate transaction-Apartment Locators-Real estate sales agents/brokers-anyone doing real estate activity with the Texas Secretary of State-Property Managers What does TREC have the power to do?Issue or revoke a Real Estate License How many members are on the Texas A&M advisory Committee?10 appointed by the governor6 are brokers licensed for 5 years3 representing the public1 ex-official representing TREC When must a Broker deliver mail and other correspondence from TREC to sponsored sales agents?Within 10 Calendar Days What happens if the recovery trust account is less than 1 million?TREC could make agents pay the renal fee ($10) of their license or whatever necessary to bring the amount to

1,700,000

• Canons of Professional Ethics?FidelityIntegrityCompetencyConsumer Information Notice

1-2 (Notifies the public of the recovery trust account)Discriminatory practices Who do all license holders receive commission from?a Broker An unlicensed assistant may?Place for sale signs on propertyPlace advertisements as directed by the license holderTrain and motivate license holdersManage an OfficeSet appointments for a license holder to show a listingPerform all clerical activities Can i licensee give a referral gift to unlicensed individuals?Yes up to 50$ (NOT CASH) to an unlicensed individual.Gift cards that cant be converted to cash are acceptable.

NO COMMISION

How can a sales license holder terminate their association with a sponsoring broker?in Writting Can you have a Broker and Sales Agent License at the same time?No; Texas is a one state one license state. However a Broker can act as a sales agent and a Broker Substantive DialogueFace-to-face meeting where substantive discussion of real estate takes place, or mailing with a substantial amount of information about a particular property.Can a license holder advertise another brokers listing?Yes, with written permission of that Broker