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

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.

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.

No. Telemarketing is only permitted for active licensees.

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.

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.

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.

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.

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.

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.

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

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

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.

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.

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.

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.

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

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.

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.

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.

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

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.

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 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.

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.

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

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

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

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

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 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.

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.

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

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.