Free Texas Real Estate Practice Exam Questions (December 2024) 40+

The Real Estate Recovery Trust Account is a special fund established by Texas Real Estate Code to provide reimbursement to persons who are victims of fraud, misrepresentation or deceit committed by real estate licensees during the course of any transaction for which a license is required. The recovery revolving fund is designed to protect consumers.

No. Telemarketing is only permitted for active licensees.

The Texas Legislature established the Texas Appraiser Licensing & Certification Board (TALCB) in order to safeguard consumers in matters of real property appraisal services. TALCB shares staff members and resources with the Texas Real Estate Commission (TREC). Together TREC and TALCB oversee real estate brokerage, real property appraisals, inspections, home warranties, and timeshare opportunities.

The creation of contract forms which bind the sale, exchange, option, lease or rental of any interest in real property cannot be drafted by agents or brokers. This goes for deeds, deeds of trust, notes and wills.

All Texas brokers must maintain all documentation pertaining to trust account records for four years from the date the document is created or received.

Regardless of the number of applicants, payments from the Real Estate Recovery Trust Account may not exceed $50,000 per transaction, with a maximum of $100,000 per license holder for multiple transactions.

Appraisers are regulated by the Texas Appraiser Licensing and Certification Board not the Texas Real Estate Commission. All the other statements are true.

All are applicable laws in the state of Texas except the Texas Transfer of Rights and Ownership Act. That does not exist.

None, almost all agents and brokers are required to complete required continuing education. The only exception is brokers who were informed in writing of their eligibility by TREC, gave notice between October 1 and 30, 1991, of their wish to opt out, and paid the applicable fee. Which is a very incredibly small number of Texas brokers.

Unlike some states, in Texas there is no state law that dictates what a broker may charge for a commission. The commission is completely negotiable in the listing contract.

The TREC rules call for immediate presentation. All written offers should be presented to the property owner as quickly as it is reasonably possible. No real estate licensee has the right to withhold an offer from a property owner.

Under no circumstances can an unlicensed office personnel host open houses. Unlicensed assistants can set appointments to show a listing. Under the general rules of the state, it is permissible for an assistant to call a homeowner and schedule an appointment for the broker to bring a potential buyer to see the home. It is also permissible for an unlicensed assistant to assist in arranging financing; however, great care must be taken that the person acts solely in an administrative capacity.

No action for judgment, which results in an order for collection from the real estate recovery trust account, shall be started later than two years from the accrual of the cause of action. Per Texas Real Estate License Act.

The Texas Seller's Disclosure of Property Condition is required by sellers of previously occupied single family residences.

Splitting the commission check with Isaac would not be allowed. A licensee is not permitted to divide a commission or fee with anyone that is not a licensed real estate broker or salesperson. He may however with his own personal money buy Isaac a gift card, give him cash, or of course pay him his normal fee.

The Texas real estate law specifically prohibits a sales agent from maintaining a trust account, only brokers can maintain a trust account.

An agent can in fact sign for a principal but only with the proper written authority. An example of that would be by power of attorney.

Texas salespersons may only collect commissions directly from their employing brokers or with their brokers direct permission. They cannot receive compensation willy nilly from their buyer or seller. For example, if a builder offers a cash bonus in return for completed transactions, the sponsoring broker must approve the compensation before the agent can accept it.

If there is a latent structural defect and a contract is entered into without a Seller's Disclosure Notice; the seller for any reason (within a limited time) can terminate the contract. This right is protected by Texas Real Estate and Consumer Law.

All individuals who hold an active Texas real estate license are required to complete 18 hours of Commission approved continuing education during each two year renewal period.

The Texas Real Estate Commission is composed of nine members, each of whom shall be appointed by the Governor.

No it is not. Commingling is a breach of trust in which a fiduciary mixes funds held in care for a client with their own funds. Commingling is illegal in Texas.

Branch license certificates must be filed with the TREC for ALL branches.

The Texas Real Estate Commission requires that all parties involved in the services of a broker be given the required information. All the information required is on an Information About Brokers Services Form. This must be given at first reasonable contact.

The Texas Real Estate Commission consists of 9 people. Per Texas Real Estate License Act Sec. 1101.051.

At no time should a licensee give legal advice. The only exception is if the licensee is also an attorney.

There are eight protected classes in Texas Fair Housing. The protected classes are the basis of race, color, religion, sex, handicap, familial status, national origin or ancestry.

No. TREC Rule 535.4(c) states that a person must be licensed as a broker or sales agent to show a property. “Show” does infact include causing or permitting a property to be viewed by a prospective buyer.

All Texas Licensees must follow The Canons of Professional Ethics. The Texas Real Estate Commission wrote the Canons of Professional Ethics into the state statutes and since then all licensees must follow them. Via Chapter 531 of TREC Canons of Professional Ethics and Conduct.

The Texas Real Estate Commission members serve for terms of six years. Per Texas Real Estate License Act Sec. 1101.055.

The Texas Real Estate Commission is abbreviated (TREC). The Commission is the state agency that governs ALL real estate practices in Texas.

While Texas agents should legally do ALL of the following. Texas state agency disclosure laws specifically address agency disclosure. Agency disclosure laws require agents to disclose the type of agency you have with your client.

Under agency law in Texas dual agency is illegal. A license holder may not represent both principals as a dual agent under the revisions to TRELA.

Commingling is when a licensee mixes funds held in care for a client with their own funds.

In Texas, licensed activity is defined as anyone who lists, sells, leases, or deals in real estate transactions. If someone does any of those activities without a license it is considered unlicensed activity. In order to do prior tasks they must hold an active real estate license.

Cold calling or telemarketing for listings in Texas is legal but requires an active real estate license.

The Canons of Professional Ethics include fidelity, integrity, and competency. Via Chapter 531 of TREC Canons of Professional Ethics and Conduct

In terms of violation decisions, any ruling by the Texas Real Estate Commission can be appealed to a district court. Hopefully it does not come to that, but that is an option for violators that feel that are not being accurately represented.

The Commission may NOT initiate an investigation on the basis of an anonymous complaint. The Commission can in fact and is required to investigate a signed written complaint that gives reasonable cause.

In Texas, when negotiating real estate contracts a licensee shall use only contract forms promulgated by The Texas Real Estate Commission. Any other contracts unless stated by law would be considered invalid.