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

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

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

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.

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

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 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.

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

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

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 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.

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.

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.

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 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.

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

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 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 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.

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 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.

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.

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

No. Telemarketing is only permitted for active licensees.

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

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 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.

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.

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.

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

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.

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.

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.

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.

The Canons of Professional Ethics include fidelity, integrity, and competency. 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.

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.