Texas State Portion Real Estate
Exam | 185 Q’s and A’s
Who is responsible for any wrongs done by a salesperson while acting within
the scope of the agency agreement? - -The broker is liable for the
wrongdoing of his or her salespersons. The principal is liable for any wrongs
committed by the broker while acting within the scope of the agency
agreement.
- what is the distinction between sales contracts and option contracts? - -
One characteristic of sales contracts is mutual obligation. Option contracts
lack mutual obligation. The buyer in an option contract is not obligated to
buy.
- A listing agreement must contain: - -a standard street address is sufficient.
- If the commission investigates a complaint and determines that an
individual's real estate license should be suspended or revoked, the licensee
is entitled to a hearing before the commission within how many days after
the commission reaches its decision? - -A licensee who faces suspension or
revocation of their license is entitled to a hearing within 30 days of the
commission reaching their decision.
- Which of the licensed entities does not fall under the regulatory authority
of the Texas Real Estate Commission? - -The Texas Appraiser Licensing and
Certification Board has jurisdiction over state licensed and certified
appraisers. In addition to licensing brokers and salespersons, the Texas Real
Estate Commission is responsible for licensing real estate inspectors and for
regulation of companies that sell and issue residential service contracts
("home warranties"). (Article 65736, Vernon's Texas Civil Statutes.
- A licensee in Texas may not practice law, unless licensed and authorized to
do so in Texas. Practicing law includes altering contracts, or drawing up: - -a
deed, deed of trust, will, or other written instrument that may transfer or
affect the title to land.
- What penalties may a licensee who breaches the agency relationship face?
- -A licensee who breaches the agency relationship may be sued for
damages, termination of the contract, and/or non-payment of the
commission.
- Undisclosed dual agency is: - -a violation of the TRELA.
, - What is the composition of the Broker-Lawyer Committee? - -Six broker
members are appointed by the Texas Real Estate Commission; six attorney
members are appointed by the President of the State Bar of Texas. The
appointees serve a term of six years with one-third of them being appointed
every two years.
- A licensee must disclose any existing agency relationships to a new client.
This disclosure: - -may be done orally or in writing.
- A broker may do which of the following for an individual without actually
representing the individual? - -A broker may obtain financing, assist in
locating a property, and prepare a contract or lease for an individual without
representing the individual.
- A real estate licensee must notify the real estate program manager if: - -A
licensee must notify the real estate program manager within 20 days of
receiving any criminal complaint, information, indictment, or conviction in
which the licensee is named as a defendant; or entry of a civil court order,
verdict, or judgment, against the licensee in any court of competent
jurisdiction in which the subject matter therein involves any real estate or
business-related activity by the licensee.
- Pamela, who lives in a suburb in which many homes are rented, decides to
open a rental agency in order to assist her friends in finding suitable renters.
Pamela's conduct is - -unacceptable because it involves an activity for which
a real estate license is required.
- The sole broker of a brokerage firm has his or her real estate license
suspended for two years. What would happen to the licenses of the
salespersons affiliated with this broker? - -If the broker's license is
suspended or revoked, the salespersons' licenses are made inactive and
must be returned to the commission. A salesperson's license may be made
active when the salesperson is sponsored by a new broker.
- Which agency is responsible for the contract forms used by Texas
licensees? - -The Texas Real Estate Commission
- A community property with rights of survivorship agreement must: - -
doesn't need to go through probate, must be signed by both spouses, must
include the property description, be in writing, contain wording that makes
evident the intent of survivorship, and be recorded in the county courthouse.
- Generally, the most important responsibility of an agent is to: - -represent
the financial interests of the client.
, - Broker Bea recently entered into a listing contract with Seller Sally. Broker
Bea just learned that Sally is actually 17 years old and not married. The
listing contract is: - -voidable at the option of the minor.
- Which of the following people would need to obtain a real estate license if
they were involved in a real estate activity?
A. the executor of an estate
B. a court-appointed guardian
C. a trustee of the bankruptcy court
D. one who sells lots in a mobile home park - -D. The sale of land/lots is an
act of brokerage and requires that one have a license if he or she is not the
owner of the lot. The other three answers are listed as people who do not
need a license in Section 3 of the Texas Real Estate License Act.
- An agency relationship may be terminated by - -expiration of time,
agreement, rescission, abandonment, or by the death of either party.
- A property owner may claim a homeowner's exemption in Texas on a
residence that is both owned and occupied. The exemption reduces the
assessed value of the residence by - -$7,000 dollars
- A broker must maintain a place of business in the state of Texas. If the
location changes, the broker has how long to notify the commission? - -The
broker must notify the commission of any change of address within 10 days.
- What happens when an applicant for licensure has failed to pass the
competency examination within the prescribed six-month period? - -The
applicant must submit a new application meeting all current requirements.
- The written disclosure of agency relationships is not required if the: - -
proposed transaction is for a residential lease for not more than one year
and no sale is being considered. Disclosure is also not required if the licensee
meets with a party who is represented by another licensee.
- An agency relationship may be created in all of the following ways except:
A. by ratification.
B. by estoppel.
C. by apparent authority
D. by assumed authority - -D. An agency relationship may be created in all
of these ways except for by assumed authority.
- Dave defaulted on his mortgage loan and the property was ordered to be
sold at a foreclosure sale. Dave may redeem his property: - -A property
owner in default may redeem his or her property up until the property is
sold, under the equitable right of redemption.
Exam | 185 Q’s and A’s
Who is responsible for any wrongs done by a salesperson while acting within
the scope of the agency agreement? - -The broker is liable for the
wrongdoing of his or her salespersons. The principal is liable for any wrongs
committed by the broker while acting within the scope of the agency
agreement.
- what is the distinction between sales contracts and option contracts? - -
One characteristic of sales contracts is mutual obligation. Option contracts
lack mutual obligation. The buyer in an option contract is not obligated to
buy.
- A listing agreement must contain: - -a standard street address is sufficient.
- If the commission investigates a complaint and determines that an
individual's real estate license should be suspended or revoked, the licensee
is entitled to a hearing before the commission within how many days after
the commission reaches its decision? - -A licensee who faces suspension or
revocation of their license is entitled to a hearing within 30 days of the
commission reaching their decision.
- Which of the licensed entities does not fall under the regulatory authority
of the Texas Real Estate Commission? - -The Texas Appraiser Licensing and
Certification Board has jurisdiction over state licensed and certified
appraisers. In addition to licensing brokers and salespersons, the Texas Real
Estate Commission is responsible for licensing real estate inspectors and for
regulation of companies that sell and issue residential service contracts
("home warranties"). (Article 65736, Vernon's Texas Civil Statutes.
- A licensee in Texas may not practice law, unless licensed and authorized to
do so in Texas. Practicing law includes altering contracts, or drawing up: - -a
deed, deed of trust, will, or other written instrument that may transfer or
affect the title to land.
- What penalties may a licensee who breaches the agency relationship face?
- -A licensee who breaches the agency relationship may be sued for
damages, termination of the contract, and/or non-payment of the
commission.
- Undisclosed dual agency is: - -a violation of the TRELA.
, - What is the composition of the Broker-Lawyer Committee? - -Six broker
members are appointed by the Texas Real Estate Commission; six attorney
members are appointed by the President of the State Bar of Texas. The
appointees serve a term of six years with one-third of them being appointed
every two years.
- A licensee must disclose any existing agency relationships to a new client.
This disclosure: - -may be done orally or in writing.
- A broker may do which of the following for an individual without actually
representing the individual? - -A broker may obtain financing, assist in
locating a property, and prepare a contract or lease for an individual without
representing the individual.
- A real estate licensee must notify the real estate program manager if: - -A
licensee must notify the real estate program manager within 20 days of
receiving any criminal complaint, information, indictment, or conviction in
which the licensee is named as a defendant; or entry of a civil court order,
verdict, or judgment, against the licensee in any court of competent
jurisdiction in which the subject matter therein involves any real estate or
business-related activity by the licensee.
- Pamela, who lives in a suburb in which many homes are rented, decides to
open a rental agency in order to assist her friends in finding suitable renters.
Pamela's conduct is - -unacceptable because it involves an activity for which
a real estate license is required.
- The sole broker of a brokerage firm has his or her real estate license
suspended for two years. What would happen to the licenses of the
salespersons affiliated with this broker? - -If the broker's license is
suspended or revoked, the salespersons' licenses are made inactive and
must be returned to the commission. A salesperson's license may be made
active when the salesperson is sponsored by a new broker.
- Which agency is responsible for the contract forms used by Texas
licensees? - -The Texas Real Estate Commission
- A community property with rights of survivorship agreement must: - -
doesn't need to go through probate, must be signed by both spouses, must
include the property description, be in writing, contain wording that makes
evident the intent of survivorship, and be recorded in the county courthouse.
- Generally, the most important responsibility of an agent is to: - -represent
the financial interests of the client.
, - Broker Bea recently entered into a listing contract with Seller Sally. Broker
Bea just learned that Sally is actually 17 years old and not married. The
listing contract is: - -voidable at the option of the minor.
- Which of the following people would need to obtain a real estate license if
they were involved in a real estate activity?
A. the executor of an estate
B. a court-appointed guardian
C. a trustee of the bankruptcy court
D. one who sells lots in a mobile home park - -D. The sale of land/lots is an
act of brokerage and requires that one have a license if he or she is not the
owner of the lot. The other three answers are listed as people who do not
need a license in Section 3 of the Texas Real Estate License Act.
- An agency relationship may be terminated by - -expiration of time,
agreement, rescission, abandonment, or by the death of either party.
- A property owner may claim a homeowner's exemption in Texas on a
residence that is both owned and occupied. The exemption reduces the
assessed value of the residence by - -$7,000 dollars
- A broker must maintain a place of business in the state of Texas. If the
location changes, the broker has how long to notify the commission? - -The
broker must notify the commission of any change of address within 10 days.
- What happens when an applicant for licensure has failed to pass the
competency examination within the prescribed six-month period? - -The
applicant must submit a new application meeting all current requirements.
- The written disclosure of agency relationships is not required if the: - -
proposed transaction is for a residential lease for not more than one year
and no sale is being considered. Disclosure is also not required if the licensee
meets with a party who is represented by another licensee.
- An agency relationship may be created in all of the following ways except:
A. by ratification.
B. by estoppel.
C. by apparent authority
D. by assumed authority - -D. An agency relationship may be created in all
of these ways except for by assumed authority.
- Dave defaulted on his mortgage loan and the property was ordered to be
sold at a foreclosure sale. Dave may redeem his property: - -A property
owner in default may redeem his or her property up until the property is
sold, under the equitable right of redemption.
