AYPO Real Estate Principles of Real Estate II
Exam Study Guide
The Original Legislation: - ANSWER>>The Real Estate Dealers Act of 1939
main piece of Texas law governing the licensing and behavior of real estate
professionals in the state. - ANSWER>>The Real Estate License Act (TRELA)
Licensing Duties were added in: - ANSWER>>1955
Broker license was changed from 2 years in the 36 month before the application
to: - ANSWER>>4 Years in the 60 months before application
TREC is the agency in charge of overseeing the licensing and professional activities
of: - ANSWER>>-Real estate brokers
-Real estate sales agents
-Real estate inspectors
-Providers of real estate and inspection education courses
-Residential service companies
-Timeshare developers
-Easement or Right-of-Way (ERW) Agents
TREC Membership Makeup - ANSWER>>6 licensed real estate brokers and 3
members of the public, who are appointed by the Governor of Texas
Serving 6 year terms
Texas allows net listings with a limit on the percentage over the principal's
required minimum. Currently, the percentage is capped at: - ANSWER>>15%.
How agency is formed - ANSWER>>An agency relationship is formed when one
person or group of people employ another person or group to perform actions on
, behalf of the first person or group. If a person moving into a new house hires a
moving company to transport his or her furniture, an agency relationship has
been formed.
Property owners and real estate agents create what kind of relationship? -
ANSWER>>Property owners and real estate agents create
The broker decides that this is too big a task to handle alone and decides to assign
different sales agents, who effectively work as agents for the broker, to each half
of the project. The sales agents are - ANSWER>>De Facto Agents
Customers or Clients? - ANSWER>>What really defines whether someone is a
customer or a client is whether a contractual agreement exists between a real
estate professional and that person.
Client - ANSWER>>Someone who has formed a contractual agreement- Fiduciary
duties are owed
Broker Licensee - ANSWER>>The broker licensee is the person who possesses a
real estate broker's license from the Texas Real Estate Commission.
Unlicensed Broker - ANSWER>>The term "unlicensed broker" refers to anyone
who acts as a broker and provides the services normally provided by a broker
without holding a valid broker's license issued by TREC. Acting as an unlicensed
broker is a violation of TRELA and a Class A misdemeanor.
Sponsoring Broker - ANSWER>>A sponsoring broker is the licensed broker a
licensed real estate sales agent works for. The sales agent's license is issued
through sponsoring broker, and the sponsoring broker is responsible for the
brokerage activities of the sales agent.
Exam Study Guide
The Original Legislation: - ANSWER>>The Real Estate Dealers Act of 1939
main piece of Texas law governing the licensing and behavior of real estate
professionals in the state. - ANSWER>>The Real Estate License Act (TRELA)
Licensing Duties were added in: - ANSWER>>1955
Broker license was changed from 2 years in the 36 month before the application
to: - ANSWER>>4 Years in the 60 months before application
TREC is the agency in charge of overseeing the licensing and professional activities
of: - ANSWER>>-Real estate brokers
-Real estate sales agents
-Real estate inspectors
-Providers of real estate and inspection education courses
-Residential service companies
-Timeshare developers
-Easement or Right-of-Way (ERW) Agents
TREC Membership Makeup - ANSWER>>6 licensed real estate brokers and 3
members of the public, who are appointed by the Governor of Texas
Serving 6 year terms
Texas allows net listings with a limit on the percentage over the principal's
required minimum. Currently, the percentage is capped at: - ANSWER>>15%.
How agency is formed - ANSWER>>An agency relationship is formed when one
person or group of people employ another person or group to perform actions on
, behalf of the first person or group. If a person moving into a new house hires a
moving company to transport his or her furniture, an agency relationship has
been formed.
Property owners and real estate agents create what kind of relationship? -
ANSWER>>Property owners and real estate agents create
The broker decides that this is too big a task to handle alone and decides to assign
different sales agents, who effectively work as agents for the broker, to each half
of the project. The sales agents are - ANSWER>>De Facto Agents
Customers or Clients? - ANSWER>>What really defines whether someone is a
customer or a client is whether a contractual agreement exists between a real
estate professional and that person.
Client - ANSWER>>Someone who has formed a contractual agreement- Fiduciary
duties are owed
Broker Licensee - ANSWER>>The broker licensee is the person who possesses a
real estate broker's license from the Texas Real Estate Commission.
Unlicensed Broker - ANSWER>>The term "unlicensed broker" refers to anyone
who acts as a broker and provides the services normally provided by a broker
without holding a valid broker's license issued by TREC. Acting as an unlicensed
broker is a violation of TRELA and a Class A misdemeanor.
Sponsoring Broker - ANSWER>>A sponsoring broker is the licensed broker a
licensed real estate sales agent works for. The sales agent's license is issued
through sponsoring broker, and the sponsoring broker is responsible for the
brokerage activities of the sales agent.
