TREC State Exam Practice questions Flashcards

TREC State Exam Practice questions Flashcards

• Which of the following is NOT found in the TREC 1-4

Family Resale Contract?(a) If the buyer makes an offer prior to receiving the Seller's Disclosure of Property Condition, the buyer will have 7 days to terminate the offer once he receives the disclosure(b) If lender required repairs exceed 20% of the sales price the buyer may terminate the contract(c) If lender required repairs are more than 5% of the sales price the buyer may terminate the contract(d) The contract encourages the parties to agree to mediation for dispute resolution (b) If lender required repairs exceed 20% of the sales price the buyer may terminate the contractUsually found in VA and FHA financing, if lender required repairs exceed 5% of the sales price, buyer may walk away and receive their earnest money back in paragraph 7E.

• A broker from Colorado refers a buyer to a Texas

broker. The Texas broker works with the buyer who finds a property to buy. The buyer then asks the Colorado licensee to represent his interest to the Texas broker. The Colorado broker reviews all the terms and conditions set forth in the buyer's offer and makes some suggestions that are then included in the offer. The Texas broker presents the offer. It is accepted. The transaction closes and the Texas broker earns a commission. Can he pay the Colorado broker a commission?(a) No, he cannot pay a commission to an out of state broker(b) No, the Colorado broker's actions in contributing to the preparation of the offer constitute negotiating and that is not allowed(c) Yes(d) No, be he can give a referral gift of up to $200.00 in value, not cash (c) YesA Texas broker can pay an out of state broker a commission as long as the other broker does not negotiate in Texas. Preparing an offer and giving advice are not considered acts of negotiation. A referral gift of up to $50 in value, not cash, is given to an unlicensed person who provides a referral.

• A broker who has a buyer representation agreement with

a buyer decided to rebate part of the commission to the

buyer to cover closing costs. The broker should:(a) rebate

a gift card to the buyer(b) rebate $50 of the commission(c) rebate an amount on the closing disclosure (CD)(d) write the buyer a check after closing (c) rebate an amount on the closing disclosure (CD)

• How many properties can an unlicensed investor sell in a

year?(a) 0(b) Unlimited(c) 3(d) 5 (b) UnlimitedAn unlicensed investor can buy and sell his own properties an unlimited number of times per year.

• An unlicensed assistant prospects for leads for their

agent employer. Who could be fined, and/or have a license suspended or revoked by TREC?(a) the unlicensed assistant(b) the unlicensed assistant and the agent(c) the unlicensed assistant, agent and sponsoring broker(d) the sponsoring broker only (c) the unlicensed assistant, agent and sponsoring broker

• Requirements for obtaining a broker license in Texas

include:(a) 5 years of experience and 3600 points(b) 5

years of experience and 9 qualifying classes(c) 4 years of

experience out of the past five and 3600 points(d) 4 years of experience out of the past five and 900 points (c) 4 years of experience out of the past five and 3600 points

• A Texas broker has signed an Exclusive Right to Sell

listing agreement with a negotiated commission of 5.5%.He has a buyer-client with a written Buyer Representation Agreement. His buyer-client wants to buy the seller-client's property. What role will this broker play in this transaction?(a) Dual agent(b) Intermediary(c) Transaction facilitator(d) Subagent (b) IntermediaryA broker in Texas representing both parties in a transaction MUST do so as an Intermediary. Dual Agency is not allowed. A transaction facilitator works with both parties but does not represent either party, and a subagent in Texas is only representing the seller, and has a buyer customer.

3. The option period ends:(a) at midnight on the day

mentioned in the contract(b) at 5:00 pm on the third day

after the effective date(c) at midnight on the third day after

the effective date(d) at 5:00 pm on the day mentioned in

the contract

(d) at 5:00 pm on the day mentioned in the contract

• A broker has received a referral from his neighbor. The

referral results in a sale and the broker earns a commission on the transaction. How can he thank his unlicensed neighbor for the referral?(a) A gift of $50 cash(b) Any commission he promised(c) No commission(d) A gift of up to $100 in value, not cash (c) No commission

• Where should the consumer protection notice be?(a) on

every e-mail(b) on every contract offer sent(c) on the website in 10-point font(d) on the broker's office wall (d) on the broker's office wall

• A foreign broker advertises that he sells houses outside

his state for a flat fee. What is true?(a) He must refer this transaction to a resident broker in TX.(b) This is legal in Texas.(c) He must get TREC approval to do this in TX.(d) He must be a licensed attorney to do this in TX.(a) He must refer this transaction to a resident broker in TX.

• Without proper authorization, a sales agent may accept

a commission directly from:(a) A seller(b) A buyer(c) His

broker(d) The title company (c) His broker

28. The primary purpose of TREC is to:(a) make rules and

regulations(b) suspend or revoke licenses(c) protect the public(d) promulgate forms (c) protect the public

• Which of the following TREC forms does not include

the phrase, "time is of the essence"?(a) The Short Sale Addendum(b) The Third Party Financing Addendum(c) The 1-4 Family Resale Contract(d) The Notice Regarding Coastal Area Property (d) The Notice Regarding Coastal Area Property

• What are the requirements to become a licensed broker

in TX?(a) 900 hours of education + 3600 points, in addition to 4 out of the past 5 years active real estate salesperson licensure(b) 900 hours of education + 3600 points, in addition to 2 out of the past 3 years active real estate salesperson licensure(c) 900 hours of education + 2500 points, in addition to 4 out of the past 5 years active real estate salesperson licensure(d) 900 hours of education +

2500 points, in addition to 2 out of the past 3 years active real estate salesperson licensure (a) 900 hours of education + 3600 points, in addition to 4 out of the past 5 years active real estate salesperson licensure

• What is required in order for a broker to act as an

intermediary?(a) The broker must have at least 2 associates to appoint to work with the parties in order to be an intermediary(b) The broker must have the written permission of the seller and the buyer, including