Real Estate Broker State Prep Exam 2 with all Correct &
100% Verified Answers |Actual Complete Update |
Already Graded A+
TREC can initiate an investigation against a license holder at its own motion. TREC can also
investigate a license holder if: ✔Correct Answer-(c) TREC has received a written, signed
complaint, no more than four years old
After an investigation of a complaint, and a hearing, TREC has revoked the license of an
individual broker. The broker has decided to appeal this decision. He can file an appeal with:
✔Correct Answer-(d) District Court
The administrative penalty imposed by TREC for violation of the License Act is: ✔Correct
Answer-(a) a fine of up to $5000 per violation per day
The designated officer of a licensed real estate corporation owns a 15% interest in the
corporation. According to TREC rules the officer must be a broker. Also, the corporation must
have the authority to transact business in Texas. In this situation, the corporation: ✔Correct
Answer-(a) is exempt from any TREC requirement for E&O insurance
A name for use only by a small group of license holders within the brokerage is: ✔Correct
Answer-(b) a team name
An on-time renewal with late education completed within 60 days will result in: ✔Correct
Answer-(d) a $200 penalty
Who must take the six-hour broker responsibility course? ✔Correct Answer-(c) any sponsoring
broker or designated broker who sponsors one or more sales associates at any time during that
broker's current license period
A broker has negotiated a listing agreement with a seller by phone conversation. The broker and
seller have an appointment to meet this evening to sign the paperwork for the listing. The
broker will be in that neighborhood this afternoon and would like to place his sign on the
seller's property. The seller has asked the broker to do this, as the seller is anxious to have the
property on the market. What is true about this situation? ✔Correct Answer-a) the broker
cannot place the sign without written permission
A broker has a trust account for holding client funds. He maintains a minimum balance of $50
per bank requirements. He accepted a $200 fee for doing a BPO and his administrative assistant
placed the money in the trust account. This is: ✔Correct Answer-(c) an example of illegal
commingling
, Which of the following statements regarding a link to the IABS form on the broker website is
FALSE? ✔Correct Answer-(b) the link must be in the heading
How long does a broker have to deposit Earnest Money into a trust account? ✔Correct
Answer-(c) until the close of the second calendar day after the effective date of the contract
Which of the following would not be cause for revocation or suspension of a license?
✔Correct Answer-(a) guaranteeing a profit to an investor client
A broker may pay a commission to: ✔Correct Answer-(d) a salesperson sponsored by a
competing broker with whom the broker is cooperating
Who is responsible to the Texas Real Estate Commission, the public, and the clients for the acts
of a sales license holder? ✔Correct Answer-(d) both the salesperson and the sponsoring
broker
Which of the following actions on the part of a broker would be considered the unlawful
practice of law? ✔Correct Answer-(d) interpreting a legal form for a client
A broker has listed and sold a property. The seller is so impressed with the broker that the seller
refers several prospects to that broker. Two of the prospects become clients and the broker
earns a commission in both cases. The broker would like to thank the seller for the referral. The
broker can: ✔Correct Answer-(a) give the seller a referral gift of up to $ 50 in value, not cash,
for each prospect
How long does a broker have to respond to clients, agents, or other brokers? ✔Correct
Answer-(b) 2 calendar days
Which of the following is part of the minimum level of service requirement? ✔Correct
Answer-(c) the broker must present any offer to or counteroffer from the client
Which of the following would be necessary parts of a successful lawsuit for commission?
✔Correct Answer-(d) a broker must be able to prove he/she was the procuring cause of sale and
be licensed by TREC
An unlicensed assistant can: ✔Correct Answer-(c) accompany an inspector
A sales license holder has hired an unlicensed assistant. The assistant is hosting an open house
for the agent. The Real Estate Commission can assess an administrative penalty on: ✔Correct
Answer-(b) the assistant, the license holder and the broker
100% Verified Answers |Actual Complete Update |
Already Graded A+
TREC can initiate an investigation against a license holder at its own motion. TREC can also
investigate a license holder if: ✔Correct Answer-(c) TREC has received a written, signed
complaint, no more than four years old
After an investigation of a complaint, and a hearing, TREC has revoked the license of an
individual broker. The broker has decided to appeal this decision. He can file an appeal with:
✔Correct Answer-(d) District Court
The administrative penalty imposed by TREC for violation of the License Act is: ✔Correct
Answer-(a) a fine of up to $5000 per violation per day
The designated officer of a licensed real estate corporation owns a 15% interest in the
corporation. According to TREC rules the officer must be a broker. Also, the corporation must
have the authority to transact business in Texas. In this situation, the corporation: ✔Correct
Answer-(a) is exempt from any TREC requirement for E&O insurance
A name for use only by a small group of license holders within the brokerage is: ✔Correct
Answer-(b) a team name
An on-time renewal with late education completed within 60 days will result in: ✔Correct
Answer-(d) a $200 penalty
Who must take the six-hour broker responsibility course? ✔Correct Answer-(c) any sponsoring
broker or designated broker who sponsors one or more sales associates at any time during that
broker's current license period
A broker has negotiated a listing agreement with a seller by phone conversation. The broker and
seller have an appointment to meet this evening to sign the paperwork for the listing. The
broker will be in that neighborhood this afternoon and would like to place his sign on the
seller's property. The seller has asked the broker to do this, as the seller is anxious to have the
property on the market. What is true about this situation? ✔Correct Answer-a) the broker
cannot place the sign without written permission
A broker has a trust account for holding client funds. He maintains a minimum balance of $50
per bank requirements. He accepted a $200 fee for doing a BPO and his administrative assistant
placed the money in the trust account. This is: ✔Correct Answer-(c) an example of illegal
commingling
, Which of the following statements regarding a link to the IABS form on the broker website is
FALSE? ✔Correct Answer-(b) the link must be in the heading
How long does a broker have to deposit Earnest Money into a trust account? ✔Correct
Answer-(c) until the close of the second calendar day after the effective date of the contract
Which of the following would not be cause for revocation or suspension of a license?
✔Correct Answer-(a) guaranteeing a profit to an investor client
A broker may pay a commission to: ✔Correct Answer-(d) a salesperson sponsored by a
competing broker with whom the broker is cooperating
Who is responsible to the Texas Real Estate Commission, the public, and the clients for the acts
of a sales license holder? ✔Correct Answer-(d) both the salesperson and the sponsoring
broker
Which of the following actions on the part of a broker would be considered the unlawful
practice of law? ✔Correct Answer-(d) interpreting a legal form for a client
A broker has listed and sold a property. The seller is so impressed with the broker that the seller
refers several prospects to that broker. Two of the prospects become clients and the broker
earns a commission in both cases. The broker would like to thank the seller for the referral. The
broker can: ✔Correct Answer-(a) give the seller a referral gift of up to $ 50 in value, not cash,
for each prospect
How long does a broker have to respond to clients, agents, or other brokers? ✔Correct
Answer-(b) 2 calendar days
Which of the following is part of the minimum level of service requirement? ✔Correct
Answer-(c) the broker must present any offer to or counteroffer from the client
Which of the following would be necessary parts of a successful lawsuit for commission?
✔Correct Answer-(d) a broker must be able to prove he/she was the procuring cause of sale and
be licensed by TREC
An unlicensed assistant can: ✔Correct Answer-(c) accompany an inspector
A sales license holder has hired an unlicensed assistant. The assistant is hosting an open house
for the agent. The Real Estate Commission can assess an administrative penalty on: ✔Correct
Answer-(b) the assistant, the license holder and the broker
