TREBS EXAM 5 QUESTIONS AND ANSWERS
Use of the TREC promulgated One to Four Family Residential Contract (Resale):
A. Is allowed on the sale of a residential condominium
B. Can be used for a vacant residential lot
C. Covers single family, duplex, triplex, and fourplex transactions
D. All of the above
Rationale: The correct answer is C. The TREC One to Four Family Residential Contract
(Resale) covers single family, duplex, triplex, and fourplex transactions. - Answer -C.
Covers single family, duplex, triplex, and fourplex transactions
Broker's fees are:
A. Included in the One to Four Family Residential Contract (Resale) between the Buyer
and the Seller
B. Determined by writing in the Information About Brokerage Services
C. Determined by writing in the Listing Agreement
D. Both B and C
Rationale: The correct answer is C. Broker fees are agreed in the listing agreement
between the Seller and the Broker. The Broker has the ability to share those fees with
an agent from an outside company who works with a buyer. - Answer -
Fraud is:
A. A crime
B. A civil law violation
C. Both A and B
D. Only B
Rationale: The correct answer is C. Fraud can be prosecuted as a crime. Fraud charges
also can go through the courts as civil law violations. - Answer -
Federal Fair Housing Laws forbid discriminatory practices by parties including:
A. Owners of properties
B. Lenders
C. Real estate brokers
D. All of the above
Rationale: The correct answer is D. Discriminatory practices are NOT allowed in any
transaction. - Answer -
In a real estate transaction, the legal description is NOT:
A. Lot and block
B. Metes and bounds
C. A street address
D. A description of the property from a surveyor's field notes
Rationale: The correct answer is C. The legal descriptions in Texas are: Lot and block,
and metes and bounds (sometimes also called surveyor's field notes). A street address
is NOT a legal description. - Answer -
, Earnest money:
A. Constitutes the consideration
B. Is used to make the offer more enticing to the seller
C. Is required in the contract
D. Always equals 1% of the sales price
Rationale: The correct answer is B. Earnest money is a gesture of good faith and is
used to make the offer more enticing to the seller. It can be any amount that the Buyer
wishes to offer, and the Seller is willing to accept. - Answer -
Chapter 531 Canons of Professional Ethics and Conduct includes::
A. Fidelity
B. Integrity
C. Competency
D. All of the above
Rationale: The correct answer is D. Fidelity, Integrity and Competency are all a part of
Canons of Professional Ethics and Conduct. - Answer -
In the Buyer Agreement, Intermediary is in Paragraph 8. The paragraph is the same in
the Buyer Agreement and in the:
A. Listing agreement
B. Sales contract
C. Inspecting report
D. Seller's Disclosure
Rationale: The correct answer is A. The written agreements that allow intermediary are
the Buyer/Tenant agency agreement on the buyer's side, and the Listing Agreement on
the seller's side. - Answer -
A broker may not disclose any confidential information unless:
A. The broker is given permission in writing by the client.
B. It is required by law.
C. Confidentially is not required in real estate.
D. Both A and B
Rationale: The correct answer is D. Confidential information received from a client to
their agent may not be disclosed unless the agent has been given written permission to
disclose, or if the disclosure is required by law. - Answer -
If an Agent receives confidential information from a Client while the agency agreement
is in force, that agent may:
A. Share that information once the agreement expires
B. Share that information if the Client authorizes the agent to share it
C. Never share the information with another client
D. Share the information, but only to another agent
Rationale: The correct answer is B. An example of confidential information is when a
Seller informs the agent that they are willing to accept any reasonable offer but asks the
agent not to share it. The confidentiality extends beyond the expiration of the listing
Use of the TREC promulgated One to Four Family Residential Contract (Resale):
A. Is allowed on the sale of a residential condominium
B. Can be used for a vacant residential lot
C. Covers single family, duplex, triplex, and fourplex transactions
D. All of the above
Rationale: The correct answer is C. The TREC One to Four Family Residential Contract
(Resale) covers single family, duplex, triplex, and fourplex transactions. - Answer -C.
Covers single family, duplex, triplex, and fourplex transactions
Broker's fees are:
A. Included in the One to Four Family Residential Contract (Resale) between the Buyer
and the Seller
B. Determined by writing in the Information About Brokerage Services
C. Determined by writing in the Listing Agreement
D. Both B and C
Rationale: The correct answer is C. Broker fees are agreed in the listing agreement
between the Seller and the Broker. The Broker has the ability to share those fees with
an agent from an outside company who works with a buyer. - Answer -
Fraud is:
A. A crime
B. A civil law violation
C. Both A and B
D. Only B
Rationale: The correct answer is C. Fraud can be prosecuted as a crime. Fraud charges
also can go through the courts as civil law violations. - Answer -
Federal Fair Housing Laws forbid discriminatory practices by parties including:
A. Owners of properties
B. Lenders
C. Real estate brokers
D. All of the above
Rationale: The correct answer is D. Discriminatory practices are NOT allowed in any
transaction. - Answer -
In a real estate transaction, the legal description is NOT:
A. Lot and block
B. Metes and bounds
C. A street address
D. A description of the property from a surveyor's field notes
Rationale: The correct answer is C. The legal descriptions in Texas are: Lot and block,
and metes and bounds (sometimes also called surveyor's field notes). A street address
is NOT a legal description. - Answer -
, Earnest money:
A. Constitutes the consideration
B. Is used to make the offer more enticing to the seller
C. Is required in the contract
D. Always equals 1% of the sales price
Rationale: The correct answer is B. Earnest money is a gesture of good faith and is
used to make the offer more enticing to the seller. It can be any amount that the Buyer
wishes to offer, and the Seller is willing to accept. - Answer -
Chapter 531 Canons of Professional Ethics and Conduct includes::
A. Fidelity
B. Integrity
C. Competency
D. All of the above
Rationale: The correct answer is D. Fidelity, Integrity and Competency are all a part of
Canons of Professional Ethics and Conduct. - Answer -
In the Buyer Agreement, Intermediary is in Paragraph 8. The paragraph is the same in
the Buyer Agreement and in the:
A. Listing agreement
B. Sales contract
C. Inspecting report
D. Seller's Disclosure
Rationale: The correct answer is A. The written agreements that allow intermediary are
the Buyer/Tenant agency agreement on the buyer's side, and the Listing Agreement on
the seller's side. - Answer -
A broker may not disclose any confidential information unless:
A. The broker is given permission in writing by the client.
B. It is required by law.
C. Confidentially is not required in real estate.
D. Both A and B
Rationale: The correct answer is D. Confidential information received from a client to
their agent may not be disclosed unless the agent has been given written permission to
disclose, or if the disclosure is required by law. - Answer -
If an Agent receives confidential information from a Client while the agency agreement
is in force, that agent may:
A. Share that information once the agreement expires
B. Share that information if the Client authorizes the agent to share it
C. Never share the information with another client
D. Share the information, but only to another agent
Rationale: The correct answer is B. An example of confidential information is when a
Seller informs the agent that they are willing to accept any reasonable offer but asks the
agent not to share it. The confidentiality extends beyond the expiration of the listing
