TREC FAQ, Top Exam Questions and answers, rated A+

TREC FAQ, Top Exam Questions and answers, rated A+ How do I request inactive status for my sales agent license? - -Request inactive status online at no cost by following the instructions below: *Log into our Online Services *Choose to Manage my Sponsorship (Sales) *Proceed to "Terminate" the sponsoring broker of record. If you submit the Application for Inactive Broker or Sales Agent Status form by mail, you must include the $20.00 paper processing. When can an agent say that they "sold" a property in an advertisement? - -Any agent who worked with the seller or the buyer in a transaction that resulted in the sale of a property may correctly state in an advertisement that they "sold" the property. If the license holder did not participate in that specific transaction, he cannot state or imply that his actions resulted in the sale of that property. An example of a misleading advertisement of this nature would be if a license holder sent out "Just Sold" postcards with her contact information and a picture of a recently sold property that she did not help to sell. She didn't state that she sold it but an average person reading the card could surely and reasonably imply an erroneous claim of involvement. Another potential example of a misleading advertisement is a license holder who included a list of "Recently Sold Homes" in his advertisement that included many properties where he had no role in the transaction, but he failed to make it clear in the ad which - if any - of those transactions he was involved in. Under Texas law, a license holder may not "create a misleading impression" in their advertisement. A broker must review all ads to ensure this result is avoided. I am a sales agent. Can TREC review my advertising and advise me whether my advertising complies with TREC Rules? - -No. TREC does not review a sales agent's advertising. TREC will only discuss advertising questions with a broker directly. Your sponsoring broker should review your advertising because your sponsoring broker is responsible for ensuring that your advertising complies with TREC's advertising rules, and both you and your sponsoring broker can be disciplined if your advertising violates TREC rules. [See §§535.2(g), 535.154, and 535.155 (effective May 15, 2018); TRELA 1101.652(b)(23)]. Your broker must maintain, on a current basis, written policies and procedures to ensure that each sponsored sales agent complies with the Commission's advertising rules. [See §535.2(i)(6)]. Is a license holder required to put their license number on a sign or other advertising? - -No May a license holder who is a rental locator advertise that they will pay a prospective tenant a portion of their fee received from an apartment complex if the tenant uses the locator's services? - -Yes, as long as the ad complies with Rule 535.155 (effective May 15, 2018), which requires the consent of the party the license holder represents in a transaction. When a rental locator represents an apartment complex, the locator needs the consent of the apartment complex. When the rental locator represents a tenant and not an apartment complex, as demonstrated by a written representation agreement or other evidence of representation, the locator is not required to obtain the consent of the apartment complex because the complex is not his client. Regardless of representation, however, it is misleading advertising to advertise a rebate for an apartment complex that the locator knows has a "no rebate" policy. Can I advertise a service provider such as an inspector, moving company, or repair contractor on my website? - -Yes, but if you offer, recommend, or promote the use of a service provider and expect to receive compensation from the service provider when a party uses the service, the ad must disclose that you may receive the compensation. [Rule 535.155 (effective May 15, 2018)] You may advertise an inspector's services, however, an inspector may not pay a fee or other valuable consideration for (1) a referral, (2) inclusion on a list of inspectors or preferred providers, or a similar arrangement; or (3) inclusion on a list of inspections contingent on other financial agreements. [Rule 535.220(e)(3)] Also, acceptance of a fee from a service provider may violate the Federal Real Estate Settlement Procedures Act (RESPA), which prohibits certain referral fees and kickbacks. I only represent buyers. Can I advertise that I will rebate a part of my compensation to the buyer? - -Yes, as long as the advertisement complies with Rule 535.155 (effective May 15, 2018) regarding any restrictions that might apply. However, a rebate to a buyer from a license holder may be subject to restrictions by the buyer's lender. You should contact your broker or private attorney to find out how you should notify and obtain the consent of the buyer's lender to address any impact the rebate may have on the determination regarding the buyer's creditworthiness. If I represent the seller, can I advertise