Texas Real Estate Exam

How many members in TREC? - Correct Ans-9: 3 general public, 6 brokers Who appoints, confirms TREC members? - Correct Ans-Governor appoints, senate approves How many members on the Broker-Lawyer Committee? - Correct Ans-13: 6 brokers, 6 lawyers, 1 public member Who appoints Broker-Lawyer committee members? - Correct Ans-Brokers/TREC, Lawyers/Pres of State Bar, Public Member/Governor Where is the Real Estate Advisory Committee? - Correct Ans-Texas A & M Who is on the Real Estate Advisory Committee? - Correct Ans-10 members: 6 brokers, 3 public members, 1 ex TREC officio How long does an individual have after an incident to file a complaint against a license holder? - Correct Ans-4 years If your license is revoked by TREC, you may..... - Correct Ans-appeal to the district court Brokerage without a license is defined as a - Correct Ans-Class A Misdemeanor Penalties for Brokerage without a license - Correct Ans-Fine up to $4,000; imprisonment in county jail for not more than 1 year, or both Additional penalties for brokerage without a license - Correct Ans-Civil penalties of up to three times the amount of money received The Real Estate Recovery Account was created to - Correct Ans-pay aggrieved persons who suffered monetary losses due to unscrupulous acts of license holders. If Real Estate Recovery Trust Account is below $1 million - Correct Ans-Brokers and licensees pay a pro rata share of $10 upon license renewal If Real Estate Recovery Trust Account is above $3.5 million, - Correct Ans-the excess goes into the State's General Fund When an amount if paid out of the Real Estate Recovery Trust Account on behalf of a license holder, - Correct Ans-the license of the person can be suspended or revoked. It may never be recovered until the account is paid back with interest. Maximum amount payable by the Real Estate Recovery Trust Account - Correct Ans-is $100,000 per license holder and $50,000 per transaction. Does TREC resolve disputes between license holders? - Correct Ans-No YES License - Correct Ans-attorneys receiving a commission YES License - Correct Ans-Auctioneers involved in any part of a transaction, other than calling YES License - Correct Ans-apartment locators Yes License - Correct Ans-real estate agents Yes License - Correct Ans-Business entities who receives commissions on behalf of license holders Yes License - Correct Ans-Designated broker, officer, or manager of a Real Estate Limited Liability Company Yes License - Correct Ans-a third party who collects rents from a single family residence (property manager) Yes License - Correct Ans-Any business that engages in real estate brokerage must have a licensed broker EXEMPT License - Correct Ans-attorneys receiving a fee but no commission split EXEMPT License - Correct Ans-court appointed receivers, trustees, guardians, and sheriffs; anyone engaged in or carrying out foreclosure sales EXEMPT License - Correct Ans-Administrators and executors of a will EXEMPT License - Correct Ans-on-site apartment managers EXEMPT License - Correct Ans-new home sales agents working for a builder EXEMPT License - Correct Ans-cemetary lot sales agents EXEMPT License - Correct Ans-a person selling his own property; FSBO EXEMPT License - Correct Ans-an employee leasing/renting property for the owner EXEMPT License - Correct Ans-corporate employees buying/selling/leasing corporate property EXEMPT License - Correct Ans-hotel/motel personnel EXEMPT License - Correct Ans-an attorney in fact EXEMPT License - Correct Ans-an auctioneer who is ONLY calling a real estate auction EXEMPT License - Correct Ans-anyone selling mobile homes (portable) Assumed names (DBA) need to be filed with the state within how many days of starting or stopping use of the name? - Correct Ans-30 Can a non-resident broker earn a referral commission in Texas? - Correct Ans-Yes Can a non-resident broker represent a buyer or seller in Texas? - Correct Ans-No; they must work with a licensed Texas broker. Can a non-resident broker earn a commission in Texas? - Correct Ans-Yes, but they must not negotiate in Texas Can commission to a foreign broker be in cash? - Correct Ans-Yes, or in the form of a gift (watch, etc.) Do inspectors and appraisers have to be licensed in Texas? - Correct Ans-yes TALCB - Correct Ans-Texas Appraisers Licensing and Certification Board How many members in TALCB? - Correct Ans-9: 4 appraisers, 4 public members, 1 ex officio What if you fail license exam 3 consecutive times? - Correct Ans-State OR national part requires 30 additional hours of education; both requires 60 hours What can cause your application to be denied, besides no education/failing test? - Correct Ans-outstanding Texas state student loans; unable to satisfy TREC as to your honesty, integrity, and trustworthiness Licensing Requirements - Correct Ans-18 or older/resident at time of application/fingerprints Sales Agent Licensee Required Education - Correct Ans-180 classroom hours; 6 required courses First renewal of license occurs in - Correct Ans-2 years How many hours of education are required at first renewal of sales license? - Correct Ans-98 How many hours of education are required for a broker's license? - Correct Ans-900, including 30 hours of Real Estate Brokerage How many years of experience do you need to apply for a broker's license? - Correct Ans-4 years active during the 5 years preceding the application How many points do you need to apply for a broker's license - Correct Ans-3600 What is required of any broker who sponsors one or more sales agents? - Correct Ans-6 hour broker responsibility course After first renewal, what CE is required by TREC? - Correct Ans-18 hour class every 2 years What does the 18-hour CE include? - Correct Ans-4 hours each: Legal 1 and Legal 2 If TREC does not have proof of CE at the time a license holder renews (on time renewal) - Correct Ans-Fee for renewal will be $200; late education must be done within 60 days If TREC does not have proof of CE at the time a license holder renews (on time renewal) AND late education is more than 60 days late... - Correct Ans-$450 penalty plus a $50 filing fee If a licensee submits CE hours but fails to renew license on time, - Correct Ans-there is no penalty Fee for late renewal CE deferral - Correct Ans-$200 A license is considered ____________ until the late renewal has been processed by TREC - Correct Ans-expired There is no time limit for choosing a broker - Correct Ans-True There is no time limit for TREC to deny an application - Correct Ans-True If TREC denies an application, they must notify the applicant in this amount of days - Correct Ans-30 The number of days an applicant has to appeal denial of license is - Correct Ans-10 If no appeal is made in the prescribed amount of time, - Correct Ans-TREC's decision stands