TREC EXAM QUESTIONS AND ANSWERS

What year was the License Act passed? And when was TREC created? - Answer- Passed: 1939 Created: 1949 How many members does TREC consist of? - Answer- 9; 6 commission, 3 represent gen public T/F Only TREC has the power to issue or revoke Real Estate Licenses - Answer- True What is the penalty for engaging in brokerage without a license? - Answer- Class A misdemeanor and subject to a fine of not more than $4,000 or imprisonment for more than one year An unlicensed assistant is able: - Answer- 1. Sit in an open house, hand out fliers and refer inquiries to a license holder 2. Set appointments to show a license 3. Place signs on property, accompany inspectors, place ads as directed by the license holder 4. Train and motivate license holders 5. Manage an office 6. Perform clerical activities for the broker (typing contracts, etc.) T/F TREC is able to resolve conflicts between license holders - Answer- False; TREC plays no part in resolving conflicts between license holders Persons who must have a real estate license: - Answer- 1. Attorneys who participate in a commission split 2. Auctioneers involved in any part of the transaction 3. Apartments locators 4. Real estate sales agents 5. Entities that receive compensation on behalf of a license holder Licensing Requirements: - Answer- 1. 18 yrs or older 2. Resident of Texas during time of application 3. Comply with legal residency requirements 4. Submit fingerprints to TREC before or after testing TRELA stands for? Was created? - Answer- Texas Real Estate Licensing Act 1939 To protect the public against unscrupulous brokers Senate Bill 489 allows a broker to do what? - Answer- To act as an intermediary in a transaction, but only a broker can be an intermediary