Exam Prep Sales Agent Attempt #1 – TREBS questions
with verified answers
"Sales agent" means a person who is ________________ by a licensed
broker.
A. Employed
B. Regulated
C. Sponsored
D. Deployed Ans✓✓✓ Rationale: C is the correct answer. A sales agent
is
sponsored by a licensed broker.
A broker would be practicing the unauthorized practice of law if they:
A. Draft an instrument, other than using the TREC promulgated forms
that transfers or otherwise affects an interest in real property
B. Advise a person regarding the validity or legal sufficiency of an
instrument or the validity of title to real property.
C. Tell the client that he has the authority to give legal advice
D. All of the above Ans✓✓✓ Rationale: D is the correct answer. In all
instances above, the broker would be practicing law without a license.
However, a license holder who completes a contract form for the sale,
exchange, option, or lease of an interest in real property incidental to
acting as a broker is NOT engaged in the unauthorized or illegal practice
of law in this state if the form was: (1) adopted by the commission for
the type of transaction for which the form is used; (2) prepared by an
,attorney licensed in this state and approved by the attorney for the
type of transaction for which the form is used; or (3)
prepared by the property owner or by an attorney and
required by the property owner.
A brokerage can register a contact person who will have access to the
registry. The law allows calls to existing clients which are defined as
someone you have a business transaction with in the last ____ months.
A. Two
B. Six
C. 12
D. 18 Ans✓✓✓ Rationale: D is the correct answer. Existing clients are
defined as someone you have a business transaction with in the last 18
months.
A buyer has made an offer on a property. The seller does not accept the
offer but makes a counteroffer to the buyer. This means:
A. The buyer is bound by the offer.
B. The seller must accept the original offer.
C. The buyer must accept the counteroffer.
D. The buyer is released from the original offer. Ans✓✓✓ Rationale: D
is the correct answer A counteroffer kills an
original offer.
,A buyer signs a contract to buy a house on May 23. The transaction is
closed on June 17 at which time the seller delivers the deed. The deed
is recorded on June 18, but the buyer does not move until July 4. In
Texas, title would have passed from the seller to the buyer on:
A. May 23
B. June 17
C. June 18
D. July 4 Ans✓✓✓ Rationale: B is the correct answer. Title passes when
the
deed is delivered.
A buyer's interest in real property, acquired at the moment the seller
and the buyer enter into a sales contract, is known as:
A. Legal title
B. Equitable interest
C. Fee simple determinable
D. An option to purchase Ans✓✓✓ Rationale: B is the correct answer.
Equitable interest is the buyer's interest in real property the moment
the seller and the buyer enter into a sales contract.
A contract that has been fully performed is:
A. Executory
B. Cancelled
C. Executed
, D. Breached Ans✓✓✓ Rationale: C is the correct answer. An executed
contract is one in which all parties to the contract have signed and
initialed all changes
A contract that is binding on one party but not on the other party is:
A. Void
B. Voidable
C. Unenforceable
D. Valid Ans✓✓✓ Rationale: B is the correct answer. When a contract
is void, it is not valid. It can never be enforced under state or federal
laws. A void contract is null from the moment it was created and
neither party is bound by the terms. A voidable contract is binding on
one party but not the other. (Unilateral contracts are voidable by the
unbound party). A voidable contract is valid and may be enforceable in
certain situations only if both parties agree to move forward. One party
is bound to the terms of the contract, whereas the other party can
oppose the contract for legal reasons if they so choose.
Therefore, if the unbound party rejects the contract, it
becomes voidable.
A home is currently appraised for $378,000. After having appreciated
6% per year for five years, what was the original price?
A. $325,000
B. $189,500
C. $290,770
with verified answers
"Sales agent" means a person who is ________________ by a licensed
broker.
A. Employed
B. Regulated
C. Sponsored
D. Deployed Ans✓✓✓ Rationale: C is the correct answer. A sales agent
is
sponsored by a licensed broker.
A broker would be practicing the unauthorized practice of law if they:
A. Draft an instrument, other than using the TREC promulgated forms
that transfers or otherwise affects an interest in real property
B. Advise a person regarding the validity or legal sufficiency of an
instrument or the validity of title to real property.
C. Tell the client that he has the authority to give legal advice
D. All of the above Ans✓✓✓ Rationale: D is the correct answer. In all
instances above, the broker would be practicing law without a license.
However, a license holder who completes a contract form for the sale,
exchange, option, or lease of an interest in real property incidental to
acting as a broker is NOT engaged in the unauthorized or illegal practice
of law in this state if the form was: (1) adopted by the commission for
the type of transaction for which the form is used; (2) prepared by an
,attorney licensed in this state and approved by the attorney for the
type of transaction for which the form is used; or (3)
prepared by the property owner or by an attorney and
required by the property owner.
A brokerage can register a contact person who will have access to the
registry. The law allows calls to existing clients which are defined as
someone you have a business transaction with in the last ____ months.
A. Two
B. Six
C. 12
D. 18 Ans✓✓✓ Rationale: D is the correct answer. Existing clients are
defined as someone you have a business transaction with in the last 18
months.
A buyer has made an offer on a property. The seller does not accept the
offer but makes a counteroffer to the buyer. This means:
A. The buyer is bound by the offer.
B. The seller must accept the original offer.
C. The buyer must accept the counteroffer.
D. The buyer is released from the original offer. Ans✓✓✓ Rationale: D
is the correct answer A counteroffer kills an
original offer.
,A buyer signs a contract to buy a house on May 23. The transaction is
closed on June 17 at which time the seller delivers the deed. The deed
is recorded on June 18, but the buyer does not move until July 4. In
Texas, title would have passed from the seller to the buyer on:
A. May 23
B. June 17
C. June 18
D. July 4 Ans✓✓✓ Rationale: B is the correct answer. Title passes when
the
deed is delivered.
A buyer's interest in real property, acquired at the moment the seller
and the buyer enter into a sales contract, is known as:
A. Legal title
B. Equitable interest
C. Fee simple determinable
D. An option to purchase Ans✓✓✓ Rationale: B is the correct answer.
Equitable interest is the buyer's interest in real property the moment
the seller and the buyer enter into a sales contract.
A contract that has been fully performed is:
A. Executory
B. Cancelled
C. Executed
, D. Breached Ans✓✓✓ Rationale: C is the correct answer. An executed
contract is one in which all parties to the contract have signed and
initialed all changes
A contract that is binding on one party but not on the other party is:
A. Void
B. Voidable
C. Unenforceable
D. Valid Ans✓✓✓ Rationale: B is the correct answer. When a contract
is void, it is not valid. It can never be enforced under state or federal
laws. A void contract is null from the moment it was created and
neither party is bound by the terms. A voidable contract is binding on
one party but not the other. (Unilateral contracts are voidable by the
unbound party). A voidable contract is valid and may be enforceable in
certain situations only if both parties agree to move forward. One party
is bound to the terms of the contract, whereas the other party can
oppose the contract for legal reasons if they so choose.
Therefore, if the unbound party rejects the contract, it
becomes voidable.
A home is currently appraised for $378,000. After having appreciated
6% per year for five years, what was the original price?
A. $325,000
B. $189,500
C. $290,770
