TREC (State Exam) Test with Verified Answers Graded A+
1. When was TREC Created? 1939
2. What Does TREC have the au- Make rules and regulations
thority to do?
3. How many members are in 9 Members
TREC 6 Brokers
3 General Public
4. How are TREC members ap- By the governor or senate
pointed?
5. What happens if a License TREC can file a suit with the attorney gen-
Holder fails to respond to a eral
subpoena
6. Who writes promulgated con- The broker Lawyer Committee
tract forms
7. How many members are on 13 Members
the Broker Lawyer Commit- 6 Brokers - appointed by TREC
tee?
6 Lawyers - appointed by state bar associ-
ation
1 public member appointed by the governor
8. Where is the Real Estate Cen- Texas A&M
ter?
9. How many members are on 10 appointed by the governor
the Texas A&M advisory Com- 6 are brokers licensed for 5 years
mittee? 3 representing the public
1 ex-official representing TREC
10. How long does a individual 4 years from the effective date of contract,
have to file a complaint with or the date of the incident
TREC?
11. Issue or revoke a Real Estate License
, TREC (State Exam) Test with Verified Answers Graded A+
What does TREC have the
power to do?
12. Where are TREC hearings Austin, unless a license holder requests the
held? hearing be held in their county
13. What happens if a license TREC will automatically schedule a revoca-
holder fails to respond to a tion/suspension hearing
summons from TREC
14. What can you do if you license You can appeal the decision to the district
is revoked by TREC? court
15. What happens if a person en- Guilty of a class A misdemeanor, subject to
gages in real estate brokerage a fine not more than 4K or imprisonment in
without having a secured li- the country jail
cense from TREC?
The broker who profited is liable for 3x's the
amount recieved
16. What is the penalty for viola- $5,000 per day for violation of the license
tion of the License Act? act by any person; licensed or unlicensed
17. What is the Real Estate Recov- Created by TREC to pay aggrieved persons
ery Trust Account who suffered a monetary due to acts of a
license holder
18. How much money can an ag- 3x's the amount of money lost
grieved person receive from
the recovery trust account?
19. What happens if the recovery TREC could make agents pay the renal fee
trust account is less than 1 ($10) of their license or whatever necessary
million? to bring the amount to 1,700,000
20. What happens if the Recovery The excess goes into the states general
Trust account exceeds 3.5 Mil- fund
lion?
21. TREC simply continues to invest funds
, TREC (State Exam) Test with Verified Answers Graded A+
What happens when Recovery
Trust Account balance is not
below 1 million
22. What happens to the licensee The license of the individual may be re-
when TREC pays an amount voked or suspended.
out of the Recovery Trust Ac-
count The license may never be recovered until
the account has been repaid with interest
23. What is the max payments 100,000 per license holder and 50,000 per
TREC will pay out of the Re- transaction
covery Trust?
24. Who is required to have a real -Attorneys participating in a commission
estate license? split
-Auctioneers involded in any part of a real
estate transaction
-Apartment Locators
-Real estate sales agents/brokers
-anyone doing real estate activity with the
Texas Secretary of State
-Property Managers
25. Errors and Omissions Insur- Needed if a agent has less than 10% inter-
ance est in a real estate business, with a mini-
mum annual limit of $1 million per occur-
rance
If more than 10% of the business is owned
then the required amount is $0
26. Who do all license holders re- a Broker
ceive commission from?
1. When was TREC Created? 1939
2. What Does TREC have the au- Make rules and regulations
thority to do?
3. How many members are in 9 Members
TREC 6 Brokers
3 General Public
4. How are TREC members ap- By the governor or senate
pointed?
5. What happens if a License TREC can file a suit with the attorney gen-
Holder fails to respond to a eral
subpoena
6. Who writes promulgated con- The broker Lawyer Committee
tract forms
7. How many members are on 13 Members
the Broker Lawyer Commit- 6 Brokers - appointed by TREC
tee?
6 Lawyers - appointed by state bar associ-
ation
1 public member appointed by the governor
8. Where is the Real Estate Cen- Texas A&M
ter?
9. How many members are on 10 appointed by the governor
the Texas A&M advisory Com- 6 are brokers licensed for 5 years
mittee? 3 representing the public
1 ex-official representing TREC
10. How long does a individual 4 years from the effective date of contract,
have to file a complaint with or the date of the incident
TREC?
11. Issue or revoke a Real Estate License
, TREC (State Exam) Test with Verified Answers Graded A+
What does TREC have the
power to do?
12. Where are TREC hearings Austin, unless a license holder requests the
held? hearing be held in their county
13. What happens if a license TREC will automatically schedule a revoca-
holder fails to respond to a tion/suspension hearing
summons from TREC
14. What can you do if you license You can appeal the decision to the district
is revoked by TREC? court
15. What happens if a person en- Guilty of a class A misdemeanor, subject to
gages in real estate brokerage a fine not more than 4K or imprisonment in
without having a secured li- the country jail
cense from TREC?
The broker who profited is liable for 3x's the
amount recieved
16. What is the penalty for viola- $5,000 per day for violation of the license
tion of the License Act? act by any person; licensed or unlicensed
17. What is the Real Estate Recov- Created by TREC to pay aggrieved persons
ery Trust Account who suffered a monetary due to acts of a
license holder
18. How much money can an ag- 3x's the amount of money lost
grieved person receive from
the recovery trust account?
19. What happens if the recovery TREC could make agents pay the renal fee
trust account is less than 1 ($10) of their license or whatever necessary
million? to bring the amount to 1,700,000
20. What happens if the Recovery The excess goes into the states general
Trust account exceeds 3.5 Mil- fund
lion?
21. TREC simply continues to invest funds
, TREC (State Exam) Test with Verified Answers Graded A+
What happens when Recovery
Trust Account balance is not
below 1 million
22. What happens to the licensee The license of the individual may be re-
when TREC pays an amount voked or suspended.
out of the Recovery Trust Ac-
count The license may never be recovered until
the account has been repaid with interest
23. What is the max payments 100,000 per license holder and 50,000 per
TREC will pay out of the Re- transaction
covery Trust?
24. Who is required to have a real -Attorneys participating in a commission
estate license? split
-Auctioneers involded in any part of a real
estate transaction
-Apartment Locators
-Real estate sales agents/brokers
-anyone doing real estate activity with the
Texas Secretary of State
-Property Managers
25. Errors and Omissions Insur- Needed if a agent has less than 10% inter-
ance est in a real estate business, with a mini-
mum annual limit of $1 million per occur-
rance
If more than 10% of the business is owned
then the required amount is $0
26. Who do all license holders re- a Broker
ceive commission from?
