Unit 7: Texas Real Estate License Act Flashcards

Unit 7: Texas Real Estate License Act Flashcards

do you need real estate license Procure prospects for the purpose of effecting the sale of real estate yes The license of a sales agent (and the sponsoring broker) immediately becomes inactive upon each of the following circumstances (1) the death of the sponsoring broker;(2) the expiration, suspension, revocation, or inactivation of the sponsoring broker's license;(3) the dissolution or forfeiture of charter or the loss of the license of a designated broker, if the sponsoring broker is a business entity; or(4) broker notification in writing to the Commission that the broker no longer sponsors a sales agent. Whether from a broker to a sales agent or from a sales agent to a broker, termination of sponsorship must be in writing.The primary purpose of the license law is to (1) protect the public from dishonest or incompetent brokers or salespeople,(2) prescribe certain minimum standards and qualifications for licensing brokers and sales agents, (3) maintain high standards in the real estate profession, and(4) protect licensed brokers and sales agents from unfair or improper competition.ComminglingIllegally mixing deposits or monies, collected from a client, with one's personal or business account. Taking money out too soon or putting it into escrow too late (10 banking days).If a person fails to comply with a subpoena, the Commission can file suit to enforce the subpoena in a district court. The court can then order compliance with the subpoena. Failure to obey the order of the court may be punished by the court as contempt May individuals ask TREC to make a moral character check on them before actually applying for a real estate license?Yes, moral character checks can precede the actual licensing of an individual.The Texas Real Estate Commission must develop and implement policies that separate the policymaking responsibilities of the commission from the management responsibilities of the executive director and staff.An aggrieved person may only be reimbursed from the real estate recovery trust account if the reimbursement is ordered by the court that entered the judgment.To be entitled to a commission, a broker must advise a prospective buyer in writing that the buyer should have the abstract to the property examined by an attorney or obtain a title insurance policy.Which listing-related activity would a real estate agent legally be permitted to perform?Depositing earnest money in a title company rather than holding it in a trust account maintained by the broker for that purpose

If a person violates the License Act, the Commission may assess an administrative penalty in an amount NOT to exceed $5,000 per day for each violation.To begin working in the real estate industry, a person must initially obtain a sales agent's license.What happens if more than $3.5 million is in the trust fund at the end of the year?The excess money is transferred to the general fund of the state.Courses for the renewal of a sales agent license during the two years after initial licensing are called sales agent apprentice education (SAE).A person may be removed from inactive status on proof of attendance of at LEAST how many classroom hours of CE during the two-year period preceding the filing of application?18 Which is an aggrieved person NOT required to show at a Texas Real Estate Commission (TREC) hearing on an application for payment from the real estate recovery trust account?That the judgment debtor (license holder) filed for bankruptcy before the hearing Brokers are required to maintain, and to place all money received from clients in, which of the following?Escrow or trust account If the Commission proposes to deny, suspend, or revoke a person's license or certificate of registration, the person is entitled to a hearing conducted by the State Office of Administrative Hearings.It is permissible for a real estate agent to disclose to a buyer that the seller will accept a price less than the asking price if the agent represents the buyer.License requirementsrenew every 2 yearsNCLEXbackground checkactive employment To be eligible to receive a real estate license in Texas, a person must be at least 18 years of agecitizens of the United States or lawfully admitted aliensresidents of Texas Members of the Texas Real Estate Broker-Lawyer Committee hold office for staggered terms of how many years?6 No investigations or other actions against license holders may be initiated on the basis of anonymous complaints yes An individual who,for compensation, sells, buys, leases, or transfers an easement or right-of-way for use in connection with a telecommunication, utility, railroad, or pipeline service is required to be licensed as a broker or sales agent or registered with the Commission.yes(if no compensation a license not required) It is permissible for a real estate agent to fail to specify a definite termination date in a contract to perform property management services.Texas does not accept a real estate license issued by any other state.yes If a real estate brokerage is organized as a business entity, it must be licensed as a broker.

moral character determinationrequested before a person applies for a license Mineral InterestAn interest of any kind in coal, O&G, and other minerals.Can be through direct ownership or by lease.If the Commission revokes a license after making a payment from the real estate recovery trust account to satisfy all or part of a judgment against a license holder, the license holder is NOT eligible to receive a new license until the amount paid from the real estate recovery trust account on the license holder's account has been fully repaid, with interest, by the license holder.In which situation would a broker's license be required?A person handles short sales for other persons for compensation.A broker on inactive status mustterminate any association with all sponsored sales agents by giving written notice to each sales agent prior to 30 days before the broker applies for inactive status.may not perform any brokerage functions but still must pay annual renewal fees.The broker can return to active status by submitting an application, paying a fee, and submitting proof of a current CE course. A broker who otherwise terminates a relationship with a sales agent must immediately return the sales agent's license to the Commission. A new broker sponsorship form, a fee, and current CE hours are requirements for returning a sales agent license to active status.do you need real estate license to Sell a mineral interest in real estate no do you need real estate license Sell cemetary lotsno Are the actions of former real estate license holders addressed and available for compensation from the trust fund?Yes, if the former real estate license holder held a license when the act was committed.A person is NOT eligible for appointment as a public member of the Commission if that person owns more than how much of an interest in an entity regulated by or receiving funds from the Commission?10% Which statement reflects the experience and education requirements for broker and sales agent licensing?A broker license applicant must have at least four years of active sales agent experience during the five years preceding the date of application.It is considered unauthorized practice of law if a real estate license holder (who is NOT a lawyer) advises a person regarding the validity or legal sufficiency of an instrument or the validity of title to real property.yes Money will only be paid out of the real estate recovery trust account if the Commission finds that the offending license holder has insufficient assets in Texas or other states to satisfy the judgment.If a major misdeed is committed by a brokerage that results in a substantial drain on the real estate recovery trust account, what options are available to replenish the fund?All real estate license holders may be charged an additional $10 fee at renewal, or if the replenishment is an urgent need, license holders could receive a special assessment.

do you need real estate license Manage an apartment complex onsite no Before new sales agents go to work, does the Commission have to verify that their sponsoring broker is acceptable?No, as long as sponsoring brokers have active licenses, they are not rechecked.To receive a real estate license in Texas, potential sales agents must complete course work on contract law. Which of the following are included in the course?Offer and acceptance of a contract, remedies for breach of contract, and the unauthorized practice of law The Commission may NOT prohibit a license holder from using for the sale, exchange, option, or lease of an interest in real property a contract form that is prepared by an attorney and required by the property owner or prepared by the property owner.When a broker-level license holder moves from another state to Texas, can that broker become a broker in Texas?Yes, the new-to-the-state broker may become a Texas broker if the originating state has education requirements comparable with Texas requirements.The Texas Real Estate Commission has the power to enforce compliance with the Texas Real Estate License Act.yes A member may be removed from the commission if that member (1) does not have the qualifications required for appointment;(2) does not maintain the required qualifications;(3) is ineligible for membership as a result of the person's affiliation or the spouse's affiliation with a Texas trade association in the real estate industry;(4) cannot discharge the required duties for a substantial part of the term; or(5) is absent for more than half of the regularly scheduled commission meetings, unless excused by a majority vote of the commission Once a judgment is entered against a license holder to be paid by the trust fund, can the license holder be further disciplined by the Commission?Yes, the judgment in no way restricts the Commission from taking additional disciplinary action.To be eligible for a license, an individual must be at least 18 years old and a legal resident of Texas.yes do you need real estate license Negotiate the listing, sale, exchange, purchase, rental, or leasing of real estate yes The three requirements for collecting a commission are(1) the agent was licensed by TREC or as an attorney at the time the act was begun;(2) the agent advised the buyer in writing before closing to obtain or be furnished with a title insurance policy or to have an abstract examined by an attorney of the buyer's choice; and(3) the agreement to pay was in writing and signed by the party to be charged.When receiving a complaint against a license holder, the Commission will investigate the actions if the complaint is written and signed and there is reasonable cause for an investigation.Complaints must be filed within four years of the incident that is the subject of the complaint.a person who is the subject of an investigation will be promptly notified about the complaint.(Undercover or covert investigations are rarely