TREBS Exam 5 questions with verified answers
A broker may not disclose any confidential information unless:
A. The broker is given permission in writing by the client.
B. It is required by law.
C. Confidentially is not required in real estate.
D. Both A and B
Rationale: The correct answer is D. Confidential information received
from a client to their agent may not be disclosed unless the agent has
been given written permission to disclose, or if the disclosure is
required by law.
A Buyer/Tenant Representation Agreement is:
A. Only available through the Texas Real Estate Commission (TREC)
B. Only available through the Texas Association of Realtors (TAR)
C. Sometimes available through local REALTOR® Boards
D. Available to the public on the TREC web site
Rationale: The correct answer is C. The Texas Real Estate Commission
does not have a promulgated form for Buyer/Tenant Representation
Agreement. Those are available from TAR or also can be available
through the agent's local REALTOR® board.
A license holder must disclose if he is a party to the transaction, or
acting on behalf of a spouse, parent, child, business entity in which the
,license holder owns more than 10%. This is done in Paragraph _____ of
the One-to-Four Family Residential Contract (Resale).
A. 4
B. 7
C. 19
D. 25
Rationale: The correct answer is A. Paragraph 4 of the One to Four
Family Residential Contract (Resale), allows the agent to disclose if they
are a party in the contract (as required by law), or if they have any close
family relationship to the buyer (or the seller).
A license holder who gives advice or opinion as to the legal effect of a
contract or gives opinions concerning the status or validity of title to
real estate:
A. Is allowed to do this if they are a broker
B. Is practicing law
C. May give legal opinions to a client but not to a customer
D. May give legal opinions if they have been a broker for four years
Rationale: The correct answer is B. You cannot give legal advice —
period. If you do give legal advice to a buyer or seller, you could have
your license suspended or revoked.
A suit for specific performance is:
A. To force the buyer not to default on the contract
, B. To force the seller not to default on the contract
C. To force either the buyer or the seller to perform on the terms of the
contract
D. A lawsuit against the inspection company
Rationale: The correct answer is C. Either a buyer or a seller may sue
the other party to force performance under the terms of the signed and
agreed contract.
A voluntary dispute resolution is called:
A. Litigation
B. Mandatory arbitration
C. Mediation
D. Civil argument
Rationale: The correct answer is C. Residential real estate contracts call
for mediation (a voluntary dispute resolution). If parties agree to
mediation, it does not take away their right to sue.
According to the TREC One to Four Residential Contract (Resale), who is
responsible for paying the owner policy of title insurance fee?
A. The buyer
B. The seller
C. The title company named in the contract
D. The party stipulated in the contract
A broker may not disclose any confidential information unless:
A. The broker is given permission in writing by the client.
B. It is required by law.
C. Confidentially is not required in real estate.
D. Both A and B
Rationale: The correct answer is D. Confidential information received
from a client to their agent may not be disclosed unless the agent has
been given written permission to disclose, or if the disclosure is
required by law.
A Buyer/Tenant Representation Agreement is:
A. Only available through the Texas Real Estate Commission (TREC)
B. Only available through the Texas Association of Realtors (TAR)
C. Sometimes available through local REALTOR® Boards
D. Available to the public on the TREC web site
Rationale: The correct answer is C. The Texas Real Estate Commission
does not have a promulgated form for Buyer/Tenant Representation
Agreement. Those are available from TAR or also can be available
through the agent's local REALTOR® board.
A license holder must disclose if he is a party to the transaction, or
acting on behalf of a spouse, parent, child, business entity in which the
,license holder owns more than 10%. This is done in Paragraph _____ of
the One-to-Four Family Residential Contract (Resale).
A. 4
B. 7
C. 19
D. 25
Rationale: The correct answer is A. Paragraph 4 of the One to Four
Family Residential Contract (Resale), allows the agent to disclose if they
are a party in the contract (as required by law), or if they have any close
family relationship to the buyer (or the seller).
A license holder who gives advice or opinion as to the legal effect of a
contract or gives opinions concerning the status or validity of title to
real estate:
A. Is allowed to do this if they are a broker
B. Is practicing law
C. May give legal opinions to a client but not to a customer
D. May give legal opinions if they have been a broker for four years
Rationale: The correct answer is B. You cannot give legal advice —
period. If you do give legal advice to a buyer or seller, you could have
your license suspended or revoked.
A suit for specific performance is:
A. To force the buyer not to default on the contract
, B. To force the seller not to default on the contract
C. To force either the buyer or the seller to perform on the terms of the
contract
D. A lawsuit against the inspection company
Rationale: The correct answer is C. Either a buyer or a seller may sue
the other party to force performance under the terms of the signed and
agreed contract.
A voluntary dispute resolution is called:
A. Litigation
B. Mandatory arbitration
C. Mediation
D. Civil argument
Rationale: The correct answer is C. Residential real estate contracts call
for mediation (a voluntary dispute resolution). If parties agree to
mediation, it does not take away their right to sue.
According to the TREC One to Four Residential Contract (Resale), who is
responsible for paying the owner policy of title insurance fee?
A. The buyer
B. The seller
C. The title company named in the contract
D. The party stipulated in the contract
