Champions Exam Prep: State Questions and Answers with complete solution

TREC has received an application for a Texas Real Estate Sales License from Mary. Mary has completed all her educational requirements, and passed the state exam. At this point TREC will begin the background check. What is FALSE? (a) TREC has no time limit for determining integrity (b) TREC has 30 days to complete the background check (c) TREC has 30 days to notify Mary of a decision to disapprove her application (d) Mary has 10 days to appeal a denial of her application - False: TREC has 30 days to complete the background check. DEF: TREC has no limit on days to review your application or complete your background check. They have 30 days to notify you of their decision and you have 10 days to appeal that decision. Marcos was a TX licensed Real Estate Sales agent for some time. He then chose to become inactive and TREC has been holding his license in inactive status. He now wishes to activate the license. What will he have to do? - Apply through a broker, pay *$50* and take a *18-hour* continuing education course A license holder has defaulted on his student loans.As a result of this TREC will? - *Refuse to renew the license*, unless and until, the loan payments are brought up to date. Does the IABS disclose agency or personal interest? - Agency Interest When a license holder markets his own property he should? - Inform the buyer that he is a license holder, and the owner of the property. DEF: Per TRELA you must always disclose self, spouse, parent or child is involved in a real estate transaction. The IABS discloses agency not personal interest. There is no TREC promulgated form solely intended for this disclosure although paragraph 4 of the TREC contracts are now used for this. Not mentioning your personal interest in a transaction is illegal. A Texas broker may pay a commission to? (a) A foreign broker who doesn't negotiate in Texas (b) A licensed attorney in Texas (c) An in-house employee of a principal (d) Any unlicensed person for a referral - A foreign broker who doesn't negotiate in Texas. DEF: Any licensed broker outside of Texas is considered a foreign broker and may be paid a referral fee out of your commission. Attorneys must also have a real estate license. In-house employees must have a license. Only licensed brokers in Texas can receive a real estate commission in Texas. Which of the following actions is NOT a violation of the TRELA?(a) A broker offers a guaranteed buy back of a property for a set price, if the purchaser is not happy with the investment after a two-year period of ownership (b) A broker guarantees a buyer that an investment property will appreciate over the next two years (c) Selling real estate by lottery (d) Placing a sign to sell or lease real property with only the verbal consent of the owner - Putting your money where your mouth is and signing a contract to purchase with a two year close date to buy it back yourself is legal.