WorksheetsTexas State
Total questions: 30
Worksheet time: 15mins
Does TREC limit the amount of a rebate that a license holder can share with a client in a real estate transaction?
Yes, the limit is $50 in a value, but not cash
No, there is no limit on a rebate to a client
Yes, the is $500
TREC prohibits all rebates
As part of the Texas Property Code there are recording statutes. The Statutes say:
Recording can be used to impose TREC rules before they are officially adopted
Recording can be used to give constructive notice of ownership of property to future purchasers
A broker must keep copies of all documents for a minimum of 4 years
E-documents cannot be recorded
TRELA imposes many rules and requirements on Texas Real Estate License holders. According to TRELA, which of the following actions by a license holder is permitted?
A license holder may put a "for lease" sign on a property with verbal permission from the owner
If a client requests a copy of a document, the license holder can refuse to provide it unless the client wants to take the document to an attorney for review
A license holder can present a below market value to offer to a seller
A Texas broker, with written permission from both parties, can choose to act as a dual agent rather than an intermediary
A listing agent has received multiple offers on a property and has also been notified by a buyer's agent that another offer will be delivered this evening. How should the agent handle this situation?
The agent should present the offers in his possession and tell the seller he expects an additional offer this evening.
The agent should present the offers in his possession and tell the seller he expects an additional offer this evening.
He should present the offers he has and ignore the expected offer.
He should present the best offer and encourage the seller to accept it.
He should notify all interested buyers that he has multiple offers and as that they submit their highest and best offers by 9pm that evening.
Violation of TREC rules can result in disciplinary action for the license holder. Which of the following would be a violation?
The failure of an agent to read his company policies and procedures manual
The failure to disclose a second DWI conviction to TREC
Allowing any unlicensed employee or family member to show a listing
Using paper documents rather than electronic documents
To change to a new broker, a sales license holder MUST:
Notify all current clients in writing before making the change
Go on inactive status with TREC before making the change
Notify the current broker in writing
Give the current broker 2 weeks' notice before making the change
If the effective date of a contract is the Wednesday before Labor Day, the buyer MUST deliver the earnest money to the escrow agent no later than the following:
Thursday
Friday
Monday
Tuesday
TREC has many promulgated contract forms. Which of the following properties are covered by TREC forms?
Mobile homes
Apartment complexes
Farms and ranches
Cemetery lots
When must a broker deposit earnest money received from a buyer?
Within 3 days of receiving the funds
Anytime prior to closing
By the close of the second business day after receiving the funds
When the buyer tells the broker to deposit the funds
Which of the following actions can be taken by TREC after a license holder has been found to be in violation of TREC rules:
TREC can revoke or suspend a license
TREC can impose a prison sentence on a license holder
TREC can require a license holder to cancel all association memberships
TREC can cause a real estate license to expire before the expiration date
What is true about the Consumer Protection Notice?
It must be displayed in the broker's office
It must be included in the contract paperwork when a broker is helping a client to fill out a contract form
It must be included in all emails sent by the broker
It must be presented with the lABS when first meeting with a prospective client
What can an unlicensed assistant do?
Unlock a door to show property to a buyer
Host an open house
Answer a question about a property size or price
Present an offer to a seller
If an application is denied by TREC, how long must an individual wait before they can reapply?
6 months
1 year
18 months
2 years
14. The TVLB has several programs designed to help Texas Veterans and their families. Which of the following loans is NOT available from the TVLB?
A home loan
A loan to purchase commercial or investment property
A loan to purchase land
A home improvement loan
15. A Texas broker can pay a referral commission to someone from another state if:
That person is an attorney
That person has a real estate sales license from their state
C. That person is a licensed broker in their state.
d. That person requests the fee in writing when providing the referral
That person is an attorney
That person has a real estate sales license from their state
That person is a licensed broker in their state.
That person requests the fee in writing when providing the referral
A buyer's agent has sent an email request for a Seller's Disclosure to a listing broker. How long does the listing broker have to respond to the email?
1 day
2 days
5 days
10 days
When must a license holder advise a buyer in writing to have an abstract examined by an attorney or get a policy of title insurance?
When helping the buyer write an offer to purchase
Within 20 days of the effective date of the contract
When presenting the lABS to a prospective buyer client
At the end of the option period
What is required for a broker in Texas to be an Intermediary with appointments?
Written permission of the parties, even if the broker does not have any associated license holders
Written permission of the parties and at least 2 sponsored license holders associated with the broker
Written permission from either party and at least 2 sponsored license holders associated with the broker
Written permission from the parties and at least 1 sponsored license holder associated with the broker
A buyer wants to move into a property before the closing date. What TREC form should be added to the contract in this situation?
The Seller's Temporary Lease Addendum
The Non-realty Item Addendum
The Buyer's Temporary Lease Addendum
The Property Condition Addendum
A link to a completed TREC LABS form MUST be:
In the footer of every page of the license holder's business website
In a readily noticeable location on the homepage of the license holder's business website
In the body of every business email sent by the license holder
In 10-point font in every business email sent by the license holder
The option fee referred to in paragraph 5 of the TREC 1-4 Family Resale Contract must be delivered:
To the title company
To the seller's agent
As a combined payment with the earnest money deposit
As a money order or cashier's check
What can an unlicensed assistant do for a real estate agent according to TREC rules?
Prepare a CMA and present it to a prospective seller-client
Meet with a buyer-client and help them write an ofter
Tele market for listings
Search for the MLS for properties for an agent to show
What is required before an applicant for a sales agent license can engage in the business of real. estate?
The applicant must pass the license exam and pay the license fees
The applicant must receive their license from TREC
The applicant must be sponsored by a broker and have an "active status" license
The applicant must have completed all required courses
A Texas broker MUST act as an intermediary in a transaction when:
The brokerage represents both the buyer and the seller
If a buyer or seller requests it
The buyer in the transaction is a customer
Representing a buyer in a FSBO transaction
When could the owners of beachfront property be required to remove their improvement(s)
without compensation?
When the neighborhood determines that more public beach area is needed
If the state decides to build a scenic highway
If a coastal storm causing erosion has moved the vegetation line landward of the improvements
If mor than 50% of the structures have been damaged or flooded by storms
Being knowledgeable and competent as a real estate license holder engaging in brokerage includes:
Knowing title insurance rates
Knowing competitors fee schedules
Understanding market conditions
Being able to provide legal advice about the contract forms
While Mary and John are married, Mary inherits a property valued at $100,000. Several years later, she sells the property for $125,000. Based on Texas Community Property rules, how are the proceeds from this sale categorized?
$125,000 separate property of Mary
$125,000 community property of Mary and John
$50,000 separate property of Mary and $75,000 community property
$100,000 separate property of Mary and $25,000 community property.
Before a broker can release funds from an escrow account the broker must:
Notify all parties to the transaction in writing
Notify all parties to the transaction and their agents
Obtain permission from the other broker
Have written authorization to release the funds upon demand
A residential property transaction has been closed and funded. After the closing, the buyer learns that the property is located in a Municipal Utility District. The buyer was not given any notice of this. What option is open to the buyer in this situation?
The buyer can obtain water and sewer services from their prefered provider
The buyer will not be subject to MUD taxes
The buyer can sue for damages
The buyer can rescind the contract
Which of the following must be delegated as a supervisor with TREC?
An office manager who supervises unlicensed personnel
All broker associates
A team leader
A broker associate who will be managing the office for several weeks while the broker of record is on vacation.
