TREC TEST QUESTIONS AND ANSWERS
Under the Texas Real Estate License Act, persons required to hold a license include a(n) - Answer- real estate broker operating out of her home.
The Texas Real Estate Commission (TREC) is composed of how many members? - Answer- Nine
A brokerage firm works with only buyer-clients. It advertises that it rebates 1% of its commission to its buyer-client. This is - Answer- legal.
A licensee advises or counsels a person on the validity or legal sufficiency of an instrument or on the validity of title to real estate. This is known as - Answer- the unlicensed practice of law
The acts and conduct of a real estate salesperson, associated with (or acting for) a broker, are the responsibility of the - Answer- real estate broker.
If the broker acts as an intermediary between parties, what is true? - Answer- The broker may not disclose that the owner will accept a price less than the asking price, unless authorized (in writing) to do so by the owner.
A licensee has the duty to inquire about, make a disclosure related to, or release information related to - Answer- a death on the property as a result of a murder.
An agent for the buyer does NOT have to inform the buyer of - Answer- a suggestion of the lowest price that the buyer should pay based on the list price of the property.
An example of a document that creates agency at the broker level is commonly referred
to as a(n) - Answer- listing agreement.
The contract forms promulgated by the Texas Real Estate Commission place the risk of loss due to damage to the property or destruction of the property, prior to closing, on whom? - Answer- The seller
The clause in a real estate contract referring to "property condition" does NOT - Answer- provide for a buyer to establish procedures for completion of repairs in the event the Seller does not perform repairs.
A licensee is asked by the seller to paraphrase a provision regarding a lease, and then insert it into the base contract. The licensee should - Answer- refuse to paraphrase any provision but instead use the appropriate promulgated addendum or lease form, or one that is required and provided by a principal to the contract. Which law was specifically made applicable to real estate transactions in 1975, which prohibited a number of false or misleading acts or practices? - Answer- Deceptive Trade
Practices Act
In Texas, land that is owned and occupied as the family home may be protected or exempt from forced sale by creditors for judgments for debts. This is referred to as - Answer- homestead.
What power does the government exercise when it takes private property for public use? - Answer- Eminent domain
What event will create an involuntary life estate? - Answer- Dower interest becoming cohate
Of the following, which is not an encumbrance? - Answer- License
What type of land use doesn't comply with the zoning restriction for where it is located, but is permitted because it benefits the public? - Answer- Conditional use
A real estate investment business organized as a trust best describes a/an: - Answer- REIT
What is assessment value? - Answer- The value the property taxes are based on
What is market price? - Answer- The price the property actually sold for
What is market value? - Answer- The price the property is likely to bring in an "arm's length" transaction
What is an appraisal? - Answer- An opinion of value for the day the appraisal only
How long does a claimant have to file a complaint based on Title VIII with the HUD Office of Equal Opportunity? - Answer- 1 year
During a listing appointment, a salesperson recommends to a young married couple that they take title in the form of joint tenancy with the right of survivorship. The agent: - Answer- Has committed the unauthorized practice of law
At a weekly business meeting, two agents from two different firms discover that they are
both trying to list the same house. In the argument that follows, one agent scolds the other for offering to take the listing at 6%. Their broker's policy is to take 7% listings. Which law, if any, have the agents violated? - Answer- The Sherman Antitrust law
Which of the following is not a protected class under the Federal Fair Housing Act? - Answer- Ancestry
Under the Texas Real Estate License Act, persons required to hold a license include a(n) - Answer- real estate broker operating out of her home.
The Texas Real Estate Commission (TREC) is composed of how many members? - Answer- Nine
A brokerage firm works with only buyer-clients. It advertises that it rebates 1% of its commission to its buyer-client. This is - Answer- legal.
A licensee advises or counsels a person on the validity or legal sufficiency of an instrument or on the validity of title to real estate. This is known as - Answer- the unlicensed practice of law
The acts and conduct of a real estate salesperson, associated with (or acting for) a broker, are the responsibility of the - Answer- real estate broker.
If the broker acts as an intermediary between parties, what is true? - Answer- The broker may not disclose that the owner will accept a price less than the asking price, unless authorized (in writing) to do so by the owner.
A licensee has the duty to inquire about, make a disclosure related to, or release information related to - Answer- a death on the property as a result of a murder.
An agent for the buyer does NOT have to inform the buyer of - Answer- a suggestion of the lowest price that the buyer should pay based on the list price of the property.
An example of a document that creates agency at the broker level is commonly referred
to as a(n) - Answer- listing agreement.
The contract forms promulgated by the Texas Real Estate Commission place the risk of loss due to damage to the property or destruction of the property, prior to closing, on whom? - Answer- The seller
The clause in a real estate contract referring to "property condition" does NOT - Answer- provide for a buyer to establish procedures for completion of repairs in the event the Seller does not perform repairs.
A licensee is asked by the seller to paraphrase a provision regarding a lease, and then insert it into the base contract. The licensee should - Answer- refuse to paraphrase any provision but instead use the appropriate promulgated addendum or lease form, or one that is required and provided by a principal to the contract. Which law was specifically made applicable to real estate transactions in 1975, which prohibited a number of false or misleading acts or practices? - Answer- Deceptive Trade
Practices Act
In Texas, land that is owned and occupied as the family home may be protected or exempt from forced sale by creditors for judgments for debts. This is referred to as - Answer- homestead.
What power does the government exercise when it takes private property for public use? - Answer- Eminent domain
What event will create an involuntary life estate? - Answer- Dower interest becoming cohate
Of the following, which is not an encumbrance? - Answer- License
What type of land use doesn't comply with the zoning restriction for where it is located, but is permitted because it benefits the public? - Answer- Conditional use
A real estate investment business organized as a trust best describes a/an: - Answer- REIT
What is assessment value? - Answer- The value the property taxes are based on
What is market price? - Answer- The price the property actually sold for
What is market value? - Answer- The price the property is likely to bring in an "arm's length" transaction
What is an appraisal? - Answer- An opinion of value for the day the appraisal only
How long does a claimant have to file a complaint based on Title VIII with the HUD Office of Equal Opportunity? - Answer- 1 year
During a listing appointment, a salesperson recommends to a young married couple that they take title in the form of joint tenancy with the right of survivorship. The agent: - Answer- Has committed the unauthorized practice of law
At a weekly business meeting, two agents from two different firms discover that they are
both trying to list the same house. In the argument that follows, one agent scolds the other for offering to take the listing at 6%. Their broker's policy is to take 7% listings. Which law, if any, have the agents violated? - Answer- The Sherman Antitrust law
Which of the following is not a protected class under the Federal Fair Housing Act? - Answer- Ancestry
