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

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.

Payments from the trust account for claims, including attorney's fees, interest, and court costs, arising out of a single transaction may not exceed a total of $50,000, regardless of the number of claimants. Per - Sec. 1101.610 of Texas Real Estate Code.

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.

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

The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort. The concept is that a husband and wife are EQUAL partners.

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.

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.

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

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.

When you hear misrepresentation this is in reference to integrity. The real estate broker or sales agents special obligation to employ prudence and caution in the discharge of his or her duties to avoid misrepresentation is integrity.

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.

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.

The Texas Real Estate Commission prohibits a license holder from using a sales contract drafted by themselves or another licensee. The only type of sales contracts that can be used are ones that a licensed attorney drafts; or one that either buyer or seller draws up themselves. A licensee that draws up a contractual agreement for another party is in violation of TRELA and is guilty of the Unauthorized Practice of Law.

The penalty collected for a violation by a Texas real estate broker or salesperson is deposited in the Texas Real Estate Recovery Trust Account.

Failure to satisfy the continuing education requirement by the license expiration date shall result in the renewed license being automatically placed on an "inactive" status.

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.

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

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

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

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.

Tina and Billy would both be liable. Remember, the agent represents the principal and in this case it's Tina. Billy’s representation of Tina and her property is legally binding so they would both be liable. It's up to Billy to do his due diligence and it's up to Tina to tell the truth, making them both liable.

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

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

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.

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

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.

No. Telemarketing is only permitted for active licensees.

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.

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.

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

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.

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.

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 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 administers and enforces the laws of the state relating to real estate activities. The real estate commission conducts its business in order to protect the public interest. Think of the commission like the executive branch of the federal government. The commission is in charge of enforcing Texas real estate law, while different parts of the government do other aspects like writing and creating laws.

The TREC may suspend or revoke a license if a licensee pleads guilty or is found guilty of a felony which includes fraud. Speeding tickets as well as not selling any properties will not result in a license being revoked.

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.

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

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