Texas Real Estate Exam; STATE portion

How many members in TREC?

9: 3 general public, 6 brokers

Who appoints, confirms TREC members?

Governor appoints, senate approves

How many members on the Broker-Lawyer Committee?

13: 6 brokers, 6 lawyers, 1 public member

Who appoints Broker-Lawyer committee members?

Brokers/TREC, Lawyers/Pres of State Bar, Public Member/Governor

Where is the Real Estate Advisory Committee?

Texas A & M

Who is on the Real Estate Advisory Committee?

10 members: 6 brokers, 3 public members, 1 ex TREC officio

How long does an individual have after an incident to file a complaint against a license holder?

4 years

If your license is revoked by TREC, you may.....

appeal to the district court

Brokerage without a license is defined as a

Class A Misdemeanor

Penalties for Brokerage without a license

Fine up to $4,000; imprisonment in county jail for not more than 1 year, or both

Additional penalties for brokerage without a license

Civil penalties of up to three times the amount of money received

The Real Estate Recovery Account was created to

pay aggrieved persons who suffered monetary losses due to unscrupulous acts of license holders.

If Real Estate Recovery Trust Account is below $1 million

Brokers and licensees pay a pro rata share of $10 upon license renewal

If Real Estate Recovery Trust Account is above $3.5 million,

the excess goes into the State's General Fund

When an amount if paid out of the Real Estate Recovery Trust Account on behalf of a license holder,

the license of the person can be suspended or revoked. It may never be recovered until the account is paid back with interest.

Maximum amount payable by the Real Estate Recovery Trust Account

is $100,000 per license holder and $50,000 per transaction.

Does TREC resolve disputes between license holders?

No

YES License

attorneys receiving a commission

YES License

Auctioneers involved in any part of a transaction, other than calling

YES License

apartment locators

Yes License

real estate agents

Yes License

Business entities who receives commissions on behalf of license holders

Yes License

Designated broker, officer, or manager of a Real Estate Limited Liability Company

Yes License

a third party who collects rents from a single family residence (property manager)

Yes License

Any business that engages in real estate brokerage must have a licensed broker

EXEMPT License

attorneys receiving a fee but no commission split

EXEMPT License

court appointed receivers, trustees, guardians, and sheriffs; anyone engaged in or carrying out foreclosure sales

EXEMPT License

Administrators and executors of a will

EXEMPT License

on-site apartment managers

EXEMPT License

new home sales agents working for a builder

EXEMPT License

cemetary lot sales agents

EXEMPT License

a person selling his own property; FSBO

EXEMPT License

an employee leasing/renting property for the owner

EXEMPT License

corporate employees buying/selling/leasing corporate property

EXEMPT License

hotel/motel personnel

EXEMPT License

an attorney in fact

EXEMPT License

an auctioneer who is ONLY calling a real estate auction

EXEMPT License

anyone selling mobile homes (portable)

Assumed names (DBA) need to be filed with the state within how many days of starting or stopping use of the name?

30

Can a non-resident broker earn a referral commission in Texas?

Yes

Can a non-resident broker represent a buyer or seller in Texas?

No; they must work with a licensed Texas broker.

Can a non-resident broker earn a commission in Texas?

Yes, but they must not negotiate in Texas

Can commission to a foreign broker be in cash?

Yes, or in the form of a gift (watch, etc.)

Do inspectors and appraisers have to be licensed in Texas?

yes

TALCB

Texas Appraisers Licensing and Certification Board

How many members in TALCB?

9: 4 appraisers, 4 public members, 1 ex officio

What if you fail license exam 3 consecutive times?

State OR national part requires 30 additional hours of education; both requires 60 hours

What can cause your application to be denied, besides no education/failing test?

outstanding Texas state student loans; unable to satisfy TREC as to your honesty, integrity, and trustworthiness

Licensing Requirements

18 or older/resident at time of application/fingerprints

Sales Agent Licensee Required Education

180 classroom hours; 6 required courses

First renewal of license occurs in

2 years

How many hours of education are required at first renewal of sales license?

98

How many hours of education are required for a broker's license?

900, including 30 hours of Real Estate Brokerage

How many years of experience do you need to apply for a broker's license?

4 years active during the 5 years preceding the application

How many points do you need to apply for a broker's license

3600

What is required of any broker who sponsors one or more sales agents?

6 hour broker responsibility course

After first renewal, what CE is required by TREC?

18 hour class every 2 years

What does the 18-hour CE include?

4 hours each: Legal 1 and Legal 2

If TREC does not have proof of CE at the time a license holder renews (on time renewal)

Fee for renewal will be $200; late education must be done within 60 days

If TREC does not have proof of CE at the time a license holder renews (on time renewal) AND late education is more than 60 days late...

$450 penalty plus a $50 filing fee

If a licensee submits CE hours but fails to renew license on time,

there is no penalty

Fee for late renewal CE deferral

$200

A license is considered ____________ until the late renewal has been processed by TREC

expired

There is no time limit for choosing a broker

True

There is no time limit for TREC to deny an application

True

If TREC denies an application, they must notify the applicant in this amount of days

30

The number of days an applicant has to appeal denial of license is

10

If no appeal is made in the prescribed amount of time,

TREC's decision stands

Sales licenses are always held by either TREC or the sponsoring broker, never by the licensee.

True

An inactive license holder doesn't need to disclose that his is a licensee when purchasing real estate

False

To activate an inactive license

pay $50 and do 18 hours of CE

5 Canons of Professional Ethics and Conduct

fidelity

integrity

competency

consumer information notice 1-2

discriminatory practices

Consumer information notice 1-2

Notifies the public of the recovery trust account

Must be displayed in a prominent place in the broker's office

Grounds for suspension/revocation

guaranteeing future profits

receiving commissions from someone other than your broker

failing to specify a termination date in listing/buyer rep agreement

selling real estate by lottery

giving legal advice

not using form to advise buyer to get title ins or an attorney's opinion of title

placing a sign without written permission

failing to disclose license when repping self, spouse, parent, or child

knowingly making a substantial misrepresentation

advertising without identifying self as an agent/broker

commingling

conversion

threatening to sue for a commission you haven't earned

not furnishing documents to signers on demand

steering

felony or other offense involving fraud

bouncing a check to TREC

failing to notify TREC within 30 days of a felony conviction

If TREC revokes a license, the licensee must wait this amount of time before trying to obtain a new one

2 years

For unauthorized practice of law, you

can be held responsible for any financial loss a client suffers

Brokers may hold client funds in a

trust account

Most brokers prefer client funds to be held by

an attorney, title company, or bank

Earnest money must be deposited by

the close of business the second business day after the effective date of the contract

No unlicensed person in Texas can ever

earn real estate commission

A license holder may rebate a portion of his/her commission to a client

true

A license holder may not rebate a portion of his/her commission to a customer

False; but they need client's permission

All ads must include

the broker or company name

The broker or company name

must appear on every page of a website

Senate Bill 489

Requires a license holder to give IABS form (disclose agency) at first substantive meeting

Exceptions to Senate Bill 489

Open houses, meeting with someone already repped by another licensee, lease for not more than 1 year, no sale being considered

Oral or written disclosure of agency is allowed

true

Intermediary

the broker reps both buyer and seller

both parties must agree in writing

intermediary must not give advice to either party

Texas duties to client

minimum level of service

put client's interests first

inform the client of material facts

answer ? and present all offers

treat all parties honestly and fairly

You may advertise another broker's listing anytime

false; you must get written permission

A broker must deliver TREC correspondence to sales agents within how many calendar days of receipt?

10

Only a __________ can earn, and sue for, a commission.

broker

In order to sue for a commission, you must prove:

procuring cause of sale, written compensation agreement, licensed by TREC, provided written notice to the buyer to obtain an attorney's opinion of title or a title policy

Who is responsible for all professional acts/advertising of a salesperson?

the sponsoring broker

If broker terminates sponsorship, he must:

do so in writing and return license to TREC immediately

Branch office licenses cost

$50

There must be a licensed broker at each location

false

Who is responsible if an unlicensed assistant performs activities requiring a license?

the broker and the assistant

Activities an unlicensed assistant may do

set appointments, sit in an open house (but there must be a licensee there), place a sign on a property, train and motivate license holders, manage an office, clerical activities

TREC has no promulgated forms for

commercial transactions