TREC State Chapt. 4 - Agency/Brokerage. Questions and answers. Graded A+

TREC State Chapt. 4 - Agency/Brokerage. Questions and answers. Graded A+ TREC - Texas Real Estate Commission How many members does TREC have? - Nine (six brokers, with at least five years of real estate experience, and three members of the public) What are TREC's duties? - Administers TRELA, established policy and rules What is TRELA? - The Texas Real Estate Licensing Act What is TRELA's purpose? - Protect the public through regulation of licensed real estate brokerage practitioners, real estate inspectors, residential service companies, and entities offering timeshare services What does TRELA say about contract forms? - Licensees must use forms promulgated by the Texas Real Estate Broker-Lawyer Committee and adopted by TREC What is unauthorized practice of law? - Acting outside the scope of one's license; offering legal advice or drafting legal forms Who must subscribe to the REALTOR(R) Code of Ethics? - Licensees who are members of the National Association of REALTORS(R) What could happen if a licensee is found to have engaged in unauthorized practice of law? - License suspension or revocation If a licensee violates the Deceptive Trade Practices Act, and is found to have done so intentionally, what could happen? - The courts could award treble (triple) damages. Senate Bill 489 requires..... - (Disclosure of Agency) License holders to give Information About Brokerage Services to a prospect at the first substantive dialogue. Writting only(form) & (Disclosure of Representation) License holders representing a party to disclose this representation at first contact with another party or license holder. Oral or written disclosure is allowed. TREC's IABS Form - (Information About Brokerage Services) is used to make the disclosure of agency at the first substantive dialogue with potential clients. Is presented before you have been hired, therefore, before you have a client. Exceptions include Open houses, when meeting with a party represented by another license holder, or when the proposed transaction is for a residential lease for not more than one year. Texas Intermediary Practice - Senate Bill 489 allows brokers to act as an intermediary where he represents both parties to a transaction only with written permission from both parties including how he will be paid. Only a broker can be an intermediary. Statutory Intermediary takes precedence over common law dual agency. Senate Bill 489 Does 3 main things - Disclosure of Agency(IABS) Disclosure of Representation