REAL ESTATE SALESPERSON - NATIONAL PEARSON VUE
+ TX LATEST EXAM WITH CORRECT ANSWERS.BEFORE
THE HARMFUL EFFECTS OF ASBESTOS WERE KNOWN,
WHY WAS IT USED?
What law requires lenders to limit the amount of funds that can be held in reserves?
A: RESPA
B: Regulation Z - correct answer RESPA
RATIONALE
Although lenders are touched and concerned with A, B and D, RESPA sets limits
concerning reserves.
Before the harmful effects of asbestos were known, why was it used?
A: Flame retardant
B: Moisture resistant - correct answer A: Flame retardant
RATIONALE
"Asbestos had many advantages over most building materials of its kind. It is flame
retardant. The health hazard is from the dust it produces when disturbed."
The Commission's six real estate-broker members must have been engaged in the real
estate brokerage business for how long? - correct answer At least five years
RATIONALE
The six real estate-broker members shall have been engaged in the real estate
brokerage business (as licensed real estate brokers) as their major occupations for at
least five years immediately preceding their appointments.
Which of the following does TREC NOT regulate? - correct answer Mortgage brokers
RATIONALE
Mortgage brokers are regulated by the Texas Department of Savings and Mortgage
Lending (TDSML), not TREC.
According to the Texas Real Estate License Act, the Texas Real Estate Commission
may not investigate a complaint submitted more than how many years after the date of
the incident in question? - correct answer Four years
RATIONALE
According to the Texas Real Estate License Act, the Commission may not investigate a
complaint submitted more than four years after the date of the incident in question.
,The Real Estate Recovery Trust Fund's (Trust Fund) purpose includes which of the
following? - correct answer The Trust Fund is used to reimburse members of the public
who have been financially injured or damaged by the actions of a real estate broker or
salesperson.
RATIONALE
The Real Estate Recovery Trust Fund (Trust Fund) is used to reimburse members of
the public who have been financially injured or damaged by the actions of a real estate
broker or salesperson. The aggrieved person must recover a valid judgment in a court
of competent jurisdiction. The Trust Fund is not for the benefit of licensees.
A person has been damaged by the actions of a licensee as a result of a violation of the
License Act. To receive payment from the Real Estate Recovery Trust Account, the
person must - correct answer obtain a money judgment against the agent
RATIONALE
Before a person can make a claim against the Real Estate Recovery Trust Account, the
must obtain a money judgment from the courts against the licensee.
Which of the following businesses operating as a broker would require a real estate
license? - correct answer Corporation
RATIONALE
Sole Proprietorships and Partnerships are business entities that are not licensed
entities, but require the proprietorship owner or one of the general partners be licensed
as brokers. A corporation or limited liability company is an artificial person and the entity
itself must be licensed.
It is unlawful for a person to represent himself or to act in the capacity of a real estate
broker without doing which of the following? - correct answer Obtaining a license from
the Texas Real Estate Commission
RATIONALE
If a person represents himself or acts in the capacity of a real estate broker without
obtaining a real estate broker license from the Texas Real Estate Commission, that
person is breaking the law.
Martha's real estate license has been expired for 1 year. Which best describes her
situation? - correct answer Martha can pay twice the application fee and can renew her
license and continue to practice real estate
RATIONALE
Martha can pay twice the application fee and can renew her license and continue to
practice real estate.
,A licensee tells his client the safest way to divest property through a will. Which
statement is true? - correct answer The agent has committed the unauthorized practice
of law.
RATIONALE
The licensee's fiduciary duties to the principal include: obedience, loyalty, disclosure,
confidentiality, accounting and reasonable care and due diligence. While his intent may
be good, the salesperson cannot advise his client on legal matters. Only an attorney
can counsel on legal matters.
An agent is working with the a couple buying a home. In a discussion with the buyer he
advises that they take title as joint tenants since this will simplify legal matters in the
case of the death of either of the spouses. He states that if one of them should die, the
other takes title immediately without going through probate. In this case, the agent -
correct answer is guilty of the unauthorized practice of law unless the agent is also an
attorney.
RATIONALE
Advising them to take title as joint tenants is the unauthorized practice of law. A licensee
is permitted to explain the meaning of factual statements and business details as long
as the licensee does not give legal advice.
A licensee advises or counsels a person on the validity or legal sufficiency of an
instrument or on the validity of title to real estate. This is known as - correct answer the
unlicensed practice of law.
A licensee advises or counsels a person on the validity or legal sufficiency of an
instrument or on the validity of title to real estate. This is known as
CORRECT ANSWER: the unlicensed practice of law.
RATIONALEA salesperson cannot advise his client on legal matters, unless the
salesperson is a licensed attorney. The licensee's fiduciary duties to the principal
include: Care, obedience, accountability, loyalty, and disclosure. Fraud is a
misstatement of a material fact made with intent to deceive. Misrepresentation is a false
statement or concealment of a material fact with the intention of inducing the action of
another.
A seller asks her broker to hold the buyers' earnest money deposit. The broker must -
correct answer deposit the earnest money in a designated trust account.
RATIONALE
While earnest money, and who holds it, can be negotiated in the contract, the broker, if
designated to hold the earnest money deposit, must deposit the funds in a designated
trust account.
, The buyer-client tells the buyer representative they do not want to purchase if the seller
is of a certain ancestry and ask the names of the owners of a property on the list of
showings. The representative avoids answering directly instead saying, "Well, I am not
allowed to answer that kind of a question but you can look for yourself at the seller's
disclosure forms to check if the name is from the kind of background that's okay or not
with you." - correct answer Assisting or directing the buyer-client to obtain information
from which a discriminatory act based on ancestry may occur is a direct violation of the
Rules of the Texas Real Estate Commission as stated in the Canons of Professional
Ethics and Conduct
RATIONALE
Assisting the buyer-client to obtain information for which a discriminatory act based on
ancestry may occur is a direct violation of the Rules of the Texas Real Estate
Commission, TREC, as stated in the Canons of Professional Ethics and Conduct. In
Texas, protected classes include race, color, religion, sex, disability/handi-cap, familial
status, national origin and ancestry.
A broker holds an earnest money check in his safe and then tells the seller the check
bounced. The broker is guilty of - correct answer fraud
RATIONALE
If the broker had used the funds for personal use, he would have also committed
conversion. If he had deposited the funds in his own accounts, he would have been
guilty of commingling. He intentionally gave false information to the seller, so he is guilty
of fraud.
A salesperson is found guilty of business-related fraud. The broker - correct answer will
also be held responsible.
RATIONALE
A real estate broker is responsible for all acts and conduct performed by a real estate
salesperson associated with (or acting for the broker. While the broker may be fined for
the fraud, the broker is not responsible for paying the fine levied against the
salesperson.
Bob, a licensed attorney, just received his real estate salesperson's license. He came to
the aid of Mary, a licensed broker, whose client was buying his house while in the
middle of a divorce. What statement is true? - correct answer Mary can pay Bob part of
the commission.
A licensee may divide a commission or fees with an attorney who is licensed as a real
estate broker or salesperson.
Which of the following statements best describes the role of a broker acting as an
intermediary? - correct answer The broker is acting on behalf of both the buyer and
+ TX LATEST EXAM WITH CORRECT ANSWERS.BEFORE
THE HARMFUL EFFECTS OF ASBESTOS WERE KNOWN,
WHY WAS IT USED?
What law requires lenders to limit the amount of funds that can be held in reserves?
A: RESPA
B: Regulation Z - correct answer RESPA
RATIONALE
Although lenders are touched and concerned with A, B and D, RESPA sets limits
concerning reserves.
Before the harmful effects of asbestos were known, why was it used?
A: Flame retardant
B: Moisture resistant - correct answer A: Flame retardant
RATIONALE
"Asbestos had many advantages over most building materials of its kind. It is flame
retardant. The health hazard is from the dust it produces when disturbed."
The Commission's six real estate-broker members must have been engaged in the real
estate brokerage business for how long? - correct answer At least five years
RATIONALE
The six real estate-broker members shall have been engaged in the real estate
brokerage business (as licensed real estate brokers) as their major occupations for at
least five years immediately preceding their appointments.
Which of the following does TREC NOT regulate? - correct answer Mortgage brokers
RATIONALE
Mortgage brokers are regulated by the Texas Department of Savings and Mortgage
Lending (TDSML), not TREC.
According to the Texas Real Estate License Act, the Texas Real Estate Commission
may not investigate a complaint submitted more than how many years after the date of
the incident in question? - correct answer Four years
RATIONALE
According to the Texas Real Estate License Act, the Commission may not investigate a
complaint submitted more than four years after the date of the incident in question.
,The Real Estate Recovery Trust Fund's (Trust Fund) purpose includes which of the
following? - correct answer The Trust Fund is used to reimburse members of the public
who have been financially injured or damaged by the actions of a real estate broker or
salesperson.
RATIONALE
The Real Estate Recovery Trust Fund (Trust Fund) is used to reimburse members of
the public who have been financially injured or damaged by the actions of a real estate
broker or salesperson. The aggrieved person must recover a valid judgment in a court
of competent jurisdiction. The Trust Fund is not for the benefit of licensees.
A person has been damaged by the actions of a licensee as a result of a violation of the
License Act. To receive payment from the Real Estate Recovery Trust Account, the
person must - correct answer obtain a money judgment against the agent
RATIONALE
Before a person can make a claim against the Real Estate Recovery Trust Account, the
must obtain a money judgment from the courts against the licensee.
Which of the following businesses operating as a broker would require a real estate
license? - correct answer Corporation
RATIONALE
Sole Proprietorships and Partnerships are business entities that are not licensed
entities, but require the proprietorship owner or one of the general partners be licensed
as brokers. A corporation or limited liability company is an artificial person and the entity
itself must be licensed.
It is unlawful for a person to represent himself or to act in the capacity of a real estate
broker without doing which of the following? - correct answer Obtaining a license from
the Texas Real Estate Commission
RATIONALE
If a person represents himself or acts in the capacity of a real estate broker without
obtaining a real estate broker license from the Texas Real Estate Commission, that
person is breaking the law.
Martha's real estate license has been expired for 1 year. Which best describes her
situation? - correct answer Martha can pay twice the application fee and can renew her
license and continue to practice real estate
RATIONALE
Martha can pay twice the application fee and can renew her license and continue to
practice real estate.
,A licensee tells his client the safest way to divest property through a will. Which
statement is true? - correct answer The agent has committed the unauthorized practice
of law.
RATIONALE
The licensee's fiduciary duties to the principal include: obedience, loyalty, disclosure,
confidentiality, accounting and reasonable care and due diligence. While his intent may
be good, the salesperson cannot advise his client on legal matters. Only an attorney
can counsel on legal matters.
An agent is working with the a couple buying a home. In a discussion with the buyer he
advises that they take title as joint tenants since this will simplify legal matters in the
case of the death of either of the spouses. He states that if one of them should die, the
other takes title immediately without going through probate. In this case, the agent -
correct answer is guilty of the unauthorized practice of law unless the agent is also an
attorney.
RATIONALE
Advising them to take title as joint tenants is the unauthorized practice of law. A licensee
is permitted to explain the meaning of factual statements and business details as long
as the licensee does not give legal advice.
A licensee advises or counsels a person on the validity or legal sufficiency of an
instrument or on the validity of title to real estate. This is known as - correct answer the
unlicensed practice of law.
A licensee advises or counsels a person on the validity or legal sufficiency of an
instrument or on the validity of title to real estate. This is known as
CORRECT ANSWER: the unlicensed practice of law.
RATIONALEA salesperson cannot advise his client on legal matters, unless the
salesperson is a licensed attorney. The licensee's fiduciary duties to the principal
include: Care, obedience, accountability, loyalty, and disclosure. Fraud is a
misstatement of a material fact made with intent to deceive. Misrepresentation is a false
statement or concealment of a material fact with the intention of inducing the action of
another.
A seller asks her broker to hold the buyers' earnest money deposit. The broker must -
correct answer deposit the earnest money in a designated trust account.
RATIONALE
While earnest money, and who holds it, can be negotiated in the contract, the broker, if
designated to hold the earnest money deposit, must deposit the funds in a designated
trust account.
, The buyer-client tells the buyer representative they do not want to purchase if the seller
is of a certain ancestry and ask the names of the owners of a property on the list of
showings. The representative avoids answering directly instead saying, "Well, I am not
allowed to answer that kind of a question but you can look for yourself at the seller's
disclosure forms to check if the name is from the kind of background that's okay or not
with you." - correct answer Assisting or directing the buyer-client to obtain information
from which a discriminatory act based on ancestry may occur is a direct violation of the
Rules of the Texas Real Estate Commission as stated in the Canons of Professional
Ethics and Conduct
RATIONALE
Assisting the buyer-client to obtain information for which a discriminatory act based on
ancestry may occur is a direct violation of the Rules of the Texas Real Estate
Commission, TREC, as stated in the Canons of Professional Ethics and Conduct. In
Texas, protected classes include race, color, religion, sex, disability/handi-cap, familial
status, national origin and ancestry.
A broker holds an earnest money check in his safe and then tells the seller the check
bounced. The broker is guilty of - correct answer fraud
RATIONALE
If the broker had used the funds for personal use, he would have also committed
conversion. If he had deposited the funds in his own accounts, he would have been
guilty of commingling. He intentionally gave false information to the seller, so he is guilty
of fraud.
A salesperson is found guilty of business-related fraud. The broker - correct answer will
also be held responsible.
RATIONALE
A real estate broker is responsible for all acts and conduct performed by a real estate
salesperson associated with (or acting for the broker. While the broker may be fined for
the fraud, the broker is not responsible for paying the fine levied against the
salesperson.
Bob, a licensed attorney, just received his real estate salesperson's license. He came to
the aid of Mary, a licensed broker, whose client was buying his house while in the
middle of a divorce. What statement is true? - correct answer Mary can pay Bob part of
the commission.
A licensee may divide a commission or fees with an attorney who is licensed as a real
estate broker or salesperson.
Which of the following statements best describes the role of a broker acting as an
intermediary? - correct answer The broker is acting on behalf of both the buyer and
