Texas Real Estate Exam (State)
Questions and Answers
1. Texas Real Estate Commission (TREC):
Created in 1949
Purpose: to administer the provisions of the License Act
Authority to make rules and regulations
9 members (3 represent the public, 6 are brokers)
Appointed by the governor and approved by the Senate
Serve 6-year terms
Power to subpoena books, records, and witnesses
Power to issue or revoke licenses
Correct Answer All of the above
Explanation: All listed points accurately describe TREC's structure and
authority.
2. Broker Lawyer Committee:
Writes promulgated contract forms
13 members (6 brokers appointed by TREC, 6 lawyers by the
President of the State Bar, 1 public member appointed by the
governor)
, Correct Answer All of the above
Explanation: The committee's purpose and composition include all
these points.
3. Real Estate Recovery Fund:
Created by TREC to pay persons harmed by unscrupulous
licensees
Can receive up to 3 times the amount lost
When paid, the licensee’s license is revoked or suspended
automatically without a hearing
Cannot recover until the fund has been reimbursed with interest
Correct Answer All of the above
Explanation: These are the key features of the Recovery Fund.
4. Persons Who Must Have a Real Estate License:
1. Attorneys participating in a commission split
2. Auctioneers involved in real estate transactions
3. Apartment locators
4. Real estate salespeople
5. Designated officer of a licensed real estate corporation or LLC
manager (broker)
Questions and Answers
1. Texas Real Estate Commission (TREC):
Created in 1949
Purpose: to administer the provisions of the License Act
Authority to make rules and regulations
9 members (3 represent the public, 6 are brokers)
Appointed by the governor and approved by the Senate
Serve 6-year terms
Power to subpoena books, records, and witnesses
Power to issue or revoke licenses
Correct Answer All of the above
Explanation: All listed points accurately describe TREC's structure and
authority.
2. Broker Lawyer Committee:
Writes promulgated contract forms
13 members (6 brokers appointed by TREC, 6 lawyers by the
President of the State Bar, 1 public member appointed by the
governor)
, Correct Answer All of the above
Explanation: The committee's purpose and composition include all
these points.
3. Real Estate Recovery Fund:
Created by TREC to pay persons harmed by unscrupulous
licensees
Can receive up to 3 times the amount lost
When paid, the licensee’s license is revoked or suspended
automatically without a hearing
Cannot recover until the fund has been reimbursed with interest
Correct Answer All of the above
Explanation: These are the key features of the Recovery Fund.
4. Persons Who Must Have a Real Estate License:
1. Attorneys participating in a commission split
2. Auctioneers involved in real estate transactions
3. Apartment locators
4. Real estate salespeople
5. Designated officer of a licensed real estate corporation or LLC
manager (broker)
