Ch. 7
2024/2025 Money will only be paid out of the real estate recovery trust account if the Commission finds - correct answer ✔The answer is that the offending license
holder has insufficient assets in Texas or other states to satisfy the judgment. The trust fund is a backup in the event the wrongdoer cannot satisfy the loss of the consumer.
If a broker puts his license on inactive status, which situation would NOT be true? - correct answer ✔The answer is the broker may continue to operate the brokerage business until all pending transactions are closed. A broker on inactive status must terminate any association with all sponsored sales agents
by giving written notice to each sales agent prior to 30 days before the broker applies for inactive status. Once submitting the application to TREC, the broker may not perform any brokerage functions but still must pay annual renewal fees. The broker can return to active status by submitting an application, paying a fee, and submitting proof of a current CE course. A broker who otherwise terminates a relationship with a sales agent must immediately return the sales agent's license to the Commission. A new broker sponsorship form, a fee, and current CE hours are requirements for returning a sales agent license to active status. (§1101.366-.367)
Which is NOT a violation for which the Texas Real Estate Commission (TREC) may suspend or revoke a license or take other disciplinary action? - correct answer ✔The answer is requesting a moral character determination from the Commission. A moral character determination is requested before a person applies for a license. When requested, TREC determines whether a potential applicant's moral character complies with the Commission's moral character requirements for licensing.
When applying for a real estate license, the applicant must pay an additional fee of what amount for deposit into the real estate recovery trust account? - correct answer ✔The answer is $10. Applicants for sales agent and broker license pay a one-time fee of $10. On application for an original registration as
a right-of-way agent, and for each renewal of that registration, the registrant must pay a fee of $50 in addition to the original registration fee or renewal fee.
An additional fee may be assessed to each license holder at the next license