Texas Real Estate Exam-State Portion

Who is responsible for the acts of a salesperson?

The sponsoring broker

Failure on the part of the agent to advise the purchaser of real property in writing that he should have the abstract covering the property examined by an attorney of his own selection, or that he should be furnished with a policy of title insurance shall:

d. preclude payment of, or recovery of, any commission agreed to be paid on the sale

An example of gratuitous agency is:

b. Working for free

All of the following are examples of different ways of giving real estate legal description EXCEPT:

b. the recorded mailing address

The sponsoring broker is responsible to TREC, the public, and the clients for the acts of

d. his sponsored salespeople

The Texas Real Estate Broker-Lawyer Committee consists of:

c. 13 members

A handwritten will signed by the testator but not witnessed is known as a(n):

b. holographic will

The only person who is allowed to give legal advice is:

c. Attorney

How does the Texas Real Estate License Act define the first face-to-face meeting?

c. when substantive discussion occurs

An agency relationship is always created at the:

a. broker level

A guide could be developed by the company to help all licensees learn to make ethical decisions.

a. True

Which of the following is true of the rules and regulations of the Texas Real Estate Commission?

d. they have the full force and effect of law

A real estate license issued by the Texas Real Estate Commission must:

c. be prominently displayed by a residential rental locator

Land used for agriculture or wildlife management may qualify for an agricultural appraisal. When the land is no longer used for agricultural or wildlife management rollback tax can occur. The tax is owed by:

d. the owner who changed the lands use

TRELA states that to be eligible to receive a real estate license in the state of Texas a person must

d. satisfy the Commission as to the persons honesty

When the TAR Residential Leasing and Property Management Agreement is used the broker becomes an employee of the owner.

b. False

A salesperson:

b. May not act as a salesperson until he has a sponsoring broker

The real estate exam consists of 110 questions, 80 on the national portion of the test and 30 on the Texas portion of the test.

a. True

Intermediary agency has:

d. Replaced dual agency

The Texas Real Estate Recovery Fund is funded:

a. by real estate license fees

Who are the parties to the TREC sales contracts?

a. the buyer and the seller

What are the required number of MCE hours needed to renew a salesperson license after all SAE requirements have been met?

a. 3 hours of ethics, 3 hours of legal and 9 hours of related MCE hours

The maxim amount an unlicensed person can receive for a referral is:

a. $50

The Texas Property Code requires the seller of a dwelling of not more than one unit deliver a Seller's Disclosure Notice to a buyer if the dwelling is a resale property. If the buyer has not received the notice before signing the contract, the buyer may:

a. terminate the contract within 7 days after receiving the notice.

Which of the following statements is true of payment that is made from the Real Estate Recovery Fund on account of licensee's acts?

a. The license may be revoked and a new one will not be issued until the fund has been reimbursed, with interest.

The One to Four Residential Contract (Resale) is the form used to make an offer on a property. It becomes the contract when:

d. all parties have signed.

A broker becomes the property manager for an owner who has several single family homes and duplexes for rental. Under the management agreement the broker arranges for the maintenance, collects rent and signs all of the leases with the tenants as agent for the owner. In this scenario, the broker is a

a. general agent

The "Seller's Disclosure of Property Condition" must be delivered to the buyer in all of the following transactions EXCEPT:

a. for sale of commercial property

According to TREC rules, when MUST you inform a seller about the market value of their home?

b. when the listing is taken

The offeror dies five minutes prior to the offeree's acceptance of the offer. The contract formed is:

c. unenforceable

An applicant for a salesperson license must complete at least ___________ hours or equivalent classroom hours of post-secondary education.

d. 12 semester

The broker may never accept or reject an offer for the seller.

a. True

Examples of employment agreements are the:

a. listing agreement b. buyer's representation agreement

The amount of the commission is set in the:

a. listing agreement b. property management agreement c. buyer's agreement

The broker will not receive a commission if the seller sells the property. This is an example of:

b. Exclusive Agency

Whenever fraud, misrepresentation or duress can be proven, the contract becomes:

d. voidable

For an intermediary transaction to occur there must be __________ companies involved.

a. One

An applicant for a broker license must provide to the commission satisfactory evidence that the applicant:

a. has had at least 4 years of active experience in the state as a license holder

Texas does not have a disclosure law. This means:

c. The buyer does not have to disclose to the public the amount that was paid for the property.

A buyer makes an offer to purchase a property and specifies that the owner accept or reject the offer within 48 hours. Before hearing back from the owner, the buyer locates a more attractive property and withdraws the offer. Is the buyer legally entitled to withdraw the offer?

a. Yes; either party may withdraw an offer or counteroffer at anytime prior to its acceptance

Homesteads in Texas are not limited in size.

b. False. A rural homestead is limited to 200 acres for a married couple and 100 acres for a single person c. False. An urban homestead is limited to no more than 10 acres of land.

One who is given a power-of-attorney that allows them to sign the name of a principal to a contract of sale is a(n):

a. attorney-in-fact

The origins of agency relationships began in the United States when the first real estate act was passed in:

d. California in 1919

When working with the buyer as a customer, the broker may:

a. Show property to the buyer b. Fill out an offer for the buyer c. Collect a commission for the transaction

"The whole system or set of rules made by the government of a town, state, or country" is the definition of:

d. Law

The listing agreement must be in writing to satisfy:

The listing agreement must be in writing to satisfy:

A listing broker is not required to present an offer under what circumstances?

d. none of the above

a. the broker has already presented one offer, and the seller is thinking about it b. the offer is for less than the listing price c. the broker thinks a better offer will be made tomorrow

Brokers should always make it clear to _______________________ who they represent in the transaction.

d. Sellers, buyers, and other brokers

TRELA does not apply to:

a. an attorney licensed in this state b. an on-site manager of an apartment complex c. a public official while engaged in offical duties

The Texas Real Estate Commission is made up of 9 members. 3 are brokers, and 6 are members of the public.

b. False

In 1993 the legislature created:

b. statutory dual agency

The five essential elements that make a contract valid are competent parties, legal objective, consideration, offer and acceptance and contract in writing and signed.

a. True

Sally is selling her home and has listed it with a broker. She is required to give a Seller's Disclosure Notice form to thebuyer. The most likely person to fill out this form is the:

d. seller

The practice of directing home seekers to a neighborhood because of race, religion, color, national origin, sex, handicap, or familial status is:

a. Steering

The Appointment paragraph of the Texas Association of Realtors® buyer representation agreement gives the agent the right to represent the buyer in

b. the market area

The Texas Real Estate Commission consists of _______. The commission members serve for _____ terms.

a. 9 members --- 6 year

Beginning January 1, 2012, an applicant for a real estate broker license will need at least 4 years of active exerience as a license holder during the preceding 5 years.

a. TRUE

The TAR Intermediary Relationship Notice names:

a. The agent appointed to the seller b. The agent appointed to the buyer

A residential rental locator shall prominently display in a place accessible to clients:

a. the locator's license b. a statement that the locator is licensed by the commission

Standard forms of TREC:

a. must be used by real estate licensees in all transactions

While a buyer's funds are held by the title company, they are:

a. in a trust account

The seller and buyer enter into an oral contract and a written contract concerning the same property. Which contract will prevail in court?

a. written contract

A broker represents a seller under a listing agreement. The broker meets the potential buyer of the property. What must the broker do?

b. disclose his agency status to the potential buyer

Extravagant statements that a reasonable person would recognize as exaggeration is:

a. puffing

The Recovery Fund is funded by

c. real estate licensees

An owner's title insurance policy protects the owner against:

b. loss of title to a claimant with superior rights of title

The seller must give the broker permission to place the property on an MLS. The permission is given:

b. in the listing agreement

Express agency may be created by an oral or written agreement. In this agreement the duties of the broker are stated.

a. True

When the sponsoring broker no longer sponsors a salesperson the broker must:

b. return the salesperson's license to TREC immediatley

A salesperson may accept a commission from

c. Their sponsoring broker

Honesty and __________ are owed to the customer and all ____________ and defects must be disclosed to the buyer customer.

a. disclosure----------------material facts

In a universal agency relationship, the principal gives the agent the power to :

c. transact matters of all types

The National Association of Realtors (NAR) was founded in:

b. 1908

The premiums for the title insurance policy are set by the

b. Texas Department of Insurance

A contract in which all the parties make promises and are bound to act is:

a. bilateral

A person is required to have a real estate license if:

d. they are selling a ranch for a person from another country

The Civil Rights Act of 1866 says no one can discriminate because of:

a. Race

The broker must always be licensed and _____ in order to receive a commission:

b. Employed

The Seller's Disclosure Notice must be filled out by:

a. The seller

The ______ index lists in alphabetical order all sellers named in the documents recorded in a year.

a. grantor

The Civil Rights Act of 1969 was amended in 1974 to include:

c. sex

The commission may suspend or revoke the license of a broker or salesperson who guarantees that future profits will result from a resale of real property.

a. TRUE

The broker may give the seller advice and opinions about the price of the property and may do a CMA for the seller. The final decision concerning the listing price is made by the:

c. Seller

A broker has no sponsored salespersons. The broker has taken a listing for a house and has signed a buyer representation agreement with a buyer. The broker has shown the buyer several homes and the buyer wants to buy the house listed by the broker. What may the broker do?

d. the broker must become an intermediary and may not give advice and opinions to the seller and buyer

A real estate assistant working for a broker licensed in Texas:

c. may perform secretarty type duties

A licensee may be told many things in confidence by a client. The licensee may disclose confidential information if:

c. The client gives the agent permission in writing to disclose the information.

Bob has decided to sell his home himself. Is he required to have a real estate license in order to advertise his property for sale?

a. No

All salesperson's licenses must:

d. Be kept in the sponsoring broker's custody and control

Possession of the property will be given to the buyer when

c. the loan funds

Confidential information is confidential forever or:

a. until the principal gives the agent written permission to release the information.

In Texas, if two or more persons are named as owners and there is no specific indication as to how they are taking title, they are presumed to be:

b. tenants in common

An agent owes a fiduciary duty to a client. These duties include obedience, loyalty, disclosure, and confidentiality. Which one of these duties continues after the agency relationship terminates?

d. confidentiality

When a property is sold, the buyer's broker usually receives a commission. This commission is often

a. a percentage of the sales price

All of the following require a Texas real estate license except:

c. managing an apartment building as an on-site manager for the owner

Inducing a prospect to purchase property by promising a profit when it is resold is:

c. cause for suspension or revocation of licensure

All parties to the transaction must be treated honestly and fairly, but only the client is owed a fiduciary relationship.

a. True

The ___________ amendments to the fair housing laws protect families with children. Anyone under the age of _________ is considered to be a child.

a. 1988-----18

If TREC revokes the license of a saleman, who does he have the statutory right to appeal to?

b. the district attorney

All of the following are examples of different ways of giving real estate legal description EXCEPT:

b. the recorded mailing address

When is an agent required to present a prospective seller with the Information About Brokerage Services (IABS) form?

b. at the first substantive discussion about a specific property