Texas Principles of Real Estate I Study Guide: Questions & Answers: Latest Updated Solution

Valuable consideration (Ans – An agreement to provide something of worth to another that is either a loss incurred by the person making the promise or a benefit received by the other person; it is an essential element of a binding contract Universal agent (Ans – A person with unlimited power to act for another, such as a conservator or one who holds a broad scope power of attorney Blockbusting (Ans – An illegal practice in which licensees or others encourage homeowners to sell because of an influx or expected influx of minorities into the area Redlining (Ans – The practice of a lender to refuse to lend in a specific area, often based on the minority makeup of the area.Steering (Ans – The illegal practice of nudging buyers away or toward a specific area based on the presence or absence of protected class members in the area relative to the buyers. Texas Real Estate License Act (TRELA) (Ans – Exists to protect the public from incompetent or dishonest licensees, to establish minimum standards for the licensing of brokers and sales agents (including licensee education and qualifications), to establish and uphold high standards within the profession, and to ensure that the profession allows healthy and fair competition for its licensees. Texas Real Estate Commission (TREC) (Ans – Also known as the commission, TREC was created under TRELA to administer its laws. As part of its duties, TREC is charged with passing rules to enforce, interpret, and explain TRELA's provisions.