Texas Law of Contracts Exam Study Guide: Questions & Answers: Latest Updated

Describe at least two requirements under TRELA. (Ans- Act created by Texas Congress 1) All professionals are licensed 2) Use same policy, procedures, and forms. Providing correct documentations and forms during a transaction. TREC wanted to get things standardized. TREC was created in 1949 and that's when it began administrating TRELA. Real Estate Dealers license Act was enacted in 1939 for salesperson and brokers. TRELA is the present act which is active and administered until present day. Identify at least two actions that would be considered as unauthorized practice of law. (Ans- Unauthorized practice of law is strictly prohibited by law and in the state of Texas. 1) Drafting a contract or giving legal advice to your client 2) Modifying an existing TREC contract and using that in your sale; reusing the document for a purpose other than what it was created for. Describe at least two duties of the broker-lawyer committee. (Ans- 1) Draft and edit promulgated forms set forth by TRELA 2) Suspending or revoking a real estate license. 3) Issuing real estate licenses to sales agents or brokers. Making sure latest contracts are available for agents. 6 real estate brokers, 6 attorney and 1 person from the public List at least three promulgated contract forms and explain when the forms are used. (Ans- 1) One to four family residential contract (resale) - used in the buying or selling of a one to four unit residential property 2) Residential Condominium Contract (resale) - used for a resale of a condominium unit. 3) Farm and Ranch Contact - used for rural properties with metes and bounds in the description from a survey and contains provisions to deal with items that are relevant to farms and ranches that are not specifically addressed it other types of contracts. Describe at the main purpose o