AYPO - TEXAS - PRINCIPLES OF REAL
ESTATE 1 QUESTIONS AND CORRECT
SOLUTIONS
The commission shall waive the examination requirement for an applicant for a broker or sales agent
license if:
A. The application is filed before the second anniversary of the expiration date of the equivalent
license
B. Neither of these is required
C. The applicant was previously licensed in this state as a broker or sales agent
D. Both of these are required ANSW✅✅D. Both of these are required
The commission by rule may:
A. prescribe the content and duration only of continuing education courses that a license holder
must attend to renew a license
B. none of these answers are correct
C. prescribe the content only of continuing education courses that a license holder must attend to
renew a license
D. prescribe the title, content, and duration of continuing education courses that a license holder
must attend to renew a license ANSW✅✅D. prescribe the title, content, and duration of
continuing education courses that a license holder must attend to renew a license
A person may not sell, buy, lease, or transfer an easement or right-of-way for another, for
compensation or with the expectation of receiving compensation, for use in connection with
telecommunication, utility, railroad, or pipeline service unless the person:
A. Holds a license issued under this chapter
B. Holds a certificate of registration issued under this subchapter
C. Neither of these
D. Either of these ANSW✅✅D. Either of these
The Texas Real Estate Commission is also referred to as:
A. Both of these
B. TREC
,C. The Commission
D. Neither of these ANSW✅✅A. Both of these
When must a broker report a change of address to the commission?
A. Immediately
B. After the broker has established his or her business from the new location
C. Not later than the 10th day after the date a broker moves from the address designated on the
broker's license
D. Not later than the 20th day after the date a broker moves from the address designated on the
broker's license ANSW✅✅C. Not later than the 10th day after the date a broker moves from the
address designated on the broker's license
The commission shall maintain a real estate recovery trust account to reimburse aggrieved persons
who suffer actual damages caused by an act described by Section 1101.602 committed by:
A. a person who does not hold a license or certificate and who is an employee or agent of a license
or certificate holder.
B. a license holder.
C. Any of these.
D. A certificate holder. ANSW✅✅C. Any of these.
The commission may require a license holder whose license suspension or revocation is probated to:
A. Report regularly to the Attorney General's office on matters that are the basis of the probation
B. Cease renewing professional education until the license holder attains a degree of skill satisfactory
to the commission in the area that is the basis of the probation.
C. Limit practice to an area prescribed by the commission
D. Report regularly to the Governor's office on matters that are the basis of the probation
ANSW✅✅C. Limit practice to an area prescribed by the commission
The executive director shall give notice of the commission's order to the person. The notice must:
A. include the findings of fact and conclusions of law, separately stated
B. state the amount of any penalty imposed
C. All of the answers are correct
,D. inform the person of the person's right to judicial review of the order ANSW✅✅C. All of the
answers are correct
A person who receives a commission or other consideration as a result of acting as a broker or sales
agent without holding a license or certificate of registration under this chapter is liable to an
aggrieved person for a penalty of not less than the amount of money received or more than three
times the amount of money received.
A. FALSE
B. TRUE ANSW✅✅B. TRUE
A license holder is not liable for a misrepresentation or a concealment of a material fact made by a
party to a real estate transaction unless the license holder:
A. failed to disclose the license holder's knowledge of a misrepresentation or concealment.
B. knew of the misrepresentation or concealment and failed to disclose the license holder's
knowledge of the misrepresentation or concealment.
C. knew of the misrepresentation or concealment.
D. knew of the misrepresentation or concealment and disclosed their knowledge of the
misrepresentation or concealment. ANSW✅✅B. knew of the misrepresentation or concealment
and failed to disclose the license holder's knowledge of the misrepresentation or concealment.
Which of these was not covered in The Real Estate License Act?
A. Education licensing and renewal
B. Practicing, prohibitions, and discipline
C. Structure and make up of the Commission
D. Finding and retaining your real estate clients ANSW✅✅D. Finding and retaining your real estate
clients
Subchapter E of The Real Estate License Act addresses:
a. the basic groundwork for the overall statute
b. the basics of setting, running and maintaining the practice of real estate in Texas
c. the complaint process for aggrieved customers Subchapter E specifically addresses the complaint
process for aggrieved customers.
d. the Broker-Lawyer Committee ANSW✅✅
, The commission may not conduct an investigation of a person licensed under this chapter or Chapter
1102 in connection with a complaint submitted later than the ____ anniversary of the date of the
incident that is the subject of the complaint.
a. 3rd
b. 2nd
c. 1st
d. 4th ANSW✅✅d. 4th Sec. 1101.204. COMPLAINT INVESTIGATION AND DISPOSITION.(c) The
commission may not conduct an investigation of a person licensed under this chapter or Chapter
1102 in connection with a complaint submitted later than the fourth anniversary of the date of the
incident that is the subject of the complaint.
Subchapter Q of The Real Estate License Act addresses:
a. the Broker-Lawyer Committee.
b. the Real Estate Recovery Account.
c. the process of becoming and retaining a license to engage in real estate professional activities in
Texas.
d. issues regarding liability issues in disciplinary actions. This final subchapter addresses issues
regarding liability issues in disciplinary actions, explaining, among other things, that disciplinary by
the Commission does not insulate a licensee from other private actions, such as litigation, from the
aggrieved public party. ANSW✅✅d. issues regarding liability issues in disciplinary actions. This
final subchapter addresses issues regarding liability issues in disciplinary actions, explaining, among
other things, that disciplinary by the Commission does not insulate a licensee from other private
actions, such as litigation, from the aggrieved public party.
Max is a broker with five years experience. He has never been trained as anything but a real estate
agent. Max's friend LaTesha comes to him stating that she wants to buy property as an investment,
but there are so many types of property that she needs some guidance. Excited to help his friend, he
reassures her that she will undoubtedly accrue all kinds of tax benefits, including some significant
capital gains deductions, no matter what she does. Max explains that the value of property will
always increase because of topography, which is the fact that we can't build more land. LaTesha asks
about the fact that we can always build homes elsewhere. Max explains that part of the value of
land comes from where it is on the Earth and so a new house in a different location can't replace the
existing property. Confident with his answers, LaTesha agrees to sign a buyer's agreement with Max.
He gives her a copy of the IABS. Sh ANSW✅✅Scenario
Max made a mistake that could be grounds for suspending his license. What was it?
a. Max was giving out tax advice that should have been deferred to a professional properly trained in
the practice.
b. Max should have given her the IABS before she even began to ask any questions.
ESTATE 1 QUESTIONS AND CORRECT
SOLUTIONS
The commission shall waive the examination requirement for an applicant for a broker or sales agent
license if:
A. The application is filed before the second anniversary of the expiration date of the equivalent
license
B. Neither of these is required
C. The applicant was previously licensed in this state as a broker or sales agent
D. Both of these are required ANSW✅✅D. Both of these are required
The commission by rule may:
A. prescribe the content and duration only of continuing education courses that a license holder
must attend to renew a license
B. none of these answers are correct
C. prescribe the content only of continuing education courses that a license holder must attend to
renew a license
D. prescribe the title, content, and duration of continuing education courses that a license holder
must attend to renew a license ANSW✅✅D. prescribe the title, content, and duration of
continuing education courses that a license holder must attend to renew a license
A person may not sell, buy, lease, or transfer an easement or right-of-way for another, for
compensation or with the expectation of receiving compensation, for use in connection with
telecommunication, utility, railroad, or pipeline service unless the person:
A. Holds a license issued under this chapter
B. Holds a certificate of registration issued under this subchapter
C. Neither of these
D. Either of these ANSW✅✅D. Either of these
The Texas Real Estate Commission is also referred to as:
A. Both of these
B. TREC
,C. The Commission
D. Neither of these ANSW✅✅A. Both of these
When must a broker report a change of address to the commission?
A. Immediately
B. After the broker has established his or her business from the new location
C. Not later than the 10th day after the date a broker moves from the address designated on the
broker's license
D. Not later than the 20th day after the date a broker moves from the address designated on the
broker's license ANSW✅✅C. Not later than the 10th day after the date a broker moves from the
address designated on the broker's license
The commission shall maintain a real estate recovery trust account to reimburse aggrieved persons
who suffer actual damages caused by an act described by Section 1101.602 committed by:
A. a person who does not hold a license or certificate and who is an employee or agent of a license
or certificate holder.
B. a license holder.
C. Any of these.
D. A certificate holder. ANSW✅✅C. Any of these.
The commission may require a license holder whose license suspension or revocation is probated to:
A. Report regularly to the Attorney General's office on matters that are the basis of the probation
B. Cease renewing professional education until the license holder attains a degree of skill satisfactory
to the commission in the area that is the basis of the probation.
C. Limit practice to an area prescribed by the commission
D. Report regularly to the Governor's office on matters that are the basis of the probation
ANSW✅✅C. Limit practice to an area prescribed by the commission
The executive director shall give notice of the commission's order to the person. The notice must:
A. include the findings of fact and conclusions of law, separately stated
B. state the amount of any penalty imposed
C. All of the answers are correct
,D. inform the person of the person's right to judicial review of the order ANSW✅✅C. All of the
answers are correct
A person who receives a commission or other consideration as a result of acting as a broker or sales
agent without holding a license or certificate of registration under this chapter is liable to an
aggrieved person for a penalty of not less than the amount of money received or more than three
times the amount of money received.
A. FALSE
B. TRUE ANSW✅✅B. TRUE
A license holder is not liable for a misrepresentation or a concealment of a material fact made by a
party to a real estate transaction unless the license holder:
A. failed to disclose the license holder's knowledge of a misrepresentation or concealment.
B. knew of the misrepresentation or concealment and failed to disclose the license holder's
knowledge of the misrepresentation or concealment.
C. knew of the misrepresentation or concealment.
D. knew of the misrepresentation or concealment and disclosed their knowledge of the
misrepresentation or concealment. ANSW✅✅B. knew of the misrepresentation or concealment
and failed to disclose the license holder's knowledge of the misrepresentation or concealment.
Which of these was not covered in The Real Estate License Act?
A. Education licensing and renewal
B. Practicing, prohibitions, and discipline
C. Structure and make up of the Commission
D. Finding and retaining your real estate clients ANSW✅✅D. Finding and retaining your real estate
clients
Subchapter E of The Real Estate License Act addresses:
a. the basic groundwork for the overall statute
b. the basics of setting, running and maintaining the practice of real estate in Texas
c. the complaint process for aggrieved customers Subchapter E specifically addresses the complaint
process for aggrieved customers.
d. the Broker-Lawyer Committee ANSW✅✅
, The commission may not conduct an investigation of a person licensed under this chapter or Chapter
1102 in connection with a complaint submitted later than the ____ anniversary of the date of the
incident that is the subject of the complaint.
a. 3rd
b. 2nd
c. 1st
d. 4th ANSW✅✅d. 4th Sec. 1101.204. COMPLAINT INVESTIGATION AND DISPOSITION.(c) The
commission may not conduct an investigation of a person licensed under this chapter or Chapter
1102 in connection with a complaint submitted later than the fourth anniversary of the date of the
incident that is the subject of the complaint.
Subchapter Q of The Real Estate License Act addresses:
a. the Broker-Lawyer Committee.
b. the Real Estate Recovery Account.
c. the process of becoming and retaining a license to engage in real estate professional activities in
Texas.
d. issues regarding liability issues in disciplinary actions. This final subchapter addresses issues
regarding liability issues in disciplinary actions, explaining, among other things, that disciplinary by
the Commission does not insulate a licensee from other private actions, such as litigation, from the
aggrieved public party. ANSW✅✅d. issues regarding liability issues in disciplinary actions. This
final subchapter addresses issues regarding liability issues in disciplinary actions, explaining, among
other things, that disciplinary by the Commission does not insulate a licensee from other private
actions, such as litigation, from the aggrieved public party.
Max is a broker with five years experience. He has never been trained as anything but a real estate
agent. Max's friend LaTesha comes to him stating that she wants to buy property as an investment,
but there are so many types of property that she needs some guidance. Excited to help his friend, he
reassures her that she will undoubtedly accrue all kinds of tax benefits, including some significant
capital gains deductions, no matter what she does. Max explains that the value of property will
always increase because of topography, which is the fact that we can't build more land. LaTesha asks
about the fact that we can always build homes elsewhere. Max explains that part of the value of
land comes from where it is on the Earth and so a new house in a different location can't replace the
existing property. Confident with his answers, LaTesha agrees to sign a buyer's agreement with Max.
He gives her a copy of the IABS. Sh ANSW✅✅Scenario
Max made a mistake that could be grounds for suspending his license. What was it?
a. Max was giving out tax advice that should have been deferred to a professional properly trained in
the practice.
b. Max should have given her the IABS before she even began to ask any questions.
