1|Page
LREB Exam 1 Midterm Exam Prep Document |
2026/2027 Edition ||Verified Questions and Answers!!
What is an LLC (Limited Liability Company) - Answer-Is
formed by filling articles of organizations with the Texas
Secretary of State and is governed by the Texas Limited
Liability Company Act.. It Ofers limited lilabily protection.
Research State Laws says that a Realtor can not be
named "REALTOR" unless - Answer-they are not
members of A REALTOR association
Prohibits any attempt to fix prices, limit competition by
assigning market areas, or boycotting of discount broker -
Answer-Texas Free Enterprise and Anti Trust Act
Exception to the requirement for completion of a Seller's
Disclosure (There is no seller disclosure when) - Answer-
From one co-owner to one or more other co-owners
Fiduciary Duties and Responsibility - Answer-OLDCAR=
Obedience, Loyalty, Disclosure, Confidentiality,
Accounting, Reasonable Care.
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Disclosure of Representation: - Answer-At the first contact
to a potential transaction it can be face to face via phone,
e-mail or any other means of communication
Do- Not-Call Registry - Answer-should be updated every
31 days for brokers/agents to be able to make a call.
Agents are not allowed to make cold calls if it is not
updated.
The Can Spam Act of 2003 - Answer-This act requires opt-
out instructions (among other things) for unsolicited e-
mails. The statute requires that it be honored in ten days
and also requires that the unsubscribe remain active for
30 days after the message is sent.
Housing for Older Persons is exempt from the prohibition
against familial status descrimination - Answer--HUD has
determined that it is specifically for and occupied by
elderly persons under a federal state of local government
program
- It is occupied solely by persons who are 62 or older
- At least one person who is 55 or older in at least 80% of
the occupied units
, 3|Page
What are disadvantages of pursuing a brokers license? -
Answer-The broker is responsible for the activities of all
sponsored agents at the brokerage
General Partner? - Answer-Is responsible for the day to
day operations of the business and has full liability. At least
one general partner is required in a limited partnership.
The general Partner is most often the general "promoter"
When two or more parties join together to create and
operate a Real Estate Investment is called - Answer-A
Syndicate
Exclusive right to sell - Answer-Real estate brokers
recommends this listing which grants an exclusive right to
sell the property during the listing term. A commission is
paid even if the property is sold by the owner.
Procuring Cause of Sale - Answer-The effort that results in
the sale of property - the act of bringing a ready, willing
and able buyer to a seller resulting the sale of the seller's
property. The open listing has resulted in many lawsuits
between brokers each claiming commission. These
actions are known as procuring cause lawsuits.
LREB Exam 1 Midterm Exam Prep Document |
2026/2027 Edition ||Verified Questions and Answers!!
What is an LLC (Limited Liability Company) - Answer-Is
formed by filling articles of organizations with the Texas
Secretary of State and is governed by the Texas Limited
Liability Company Act.. It Ofers limited lilabily protection.
Research State Laws says that a Realtor can not be
named "REALTOR" unless - Answer-they are not
members of A REALTOR association
Prohibits any attempt to fix prices, limit competition by
assigning market areas, or boycotting of discount broker -
Answer-Texas Free Enterprise and Anti Trust Act
Exception to the requirement for completion of a Seller's
Disclosure (There is no seller disclosure when) - Answer-
From one co-owner to one or more other co-owners
Fiduciary Duties and Responsibility - Answer-OLDCAR=
Obedience, Loyalty, Disclosure, Confidentiality,
Accounting, Reasonable Care.
,2|Page
Disclosure of Representation: - Answer-At the first contact
to a potential transaction it can be face to face via phone,
e-mail or any other means of communication
Do- Not-Call Registry - Answer-should be updated every
31 days for brokers/agents to be able to make a call.
Agents are not allowed to make cold calls if it is not
updated.
The Can Spam Act of 2003 - Answer-This act requires opt-
out instructions (among other things) for unsolicited e-
mails. The statute requires that it be honored in ten days
and also requires that the unsubscribe remain active for
30 days after the message is sent.
Housing for Older Persons is exempt from the prohibition
against familial status descrimination - Answer--HUD has
determined that it is specifically for and occupied by
elderly persons under a federal state of local government
program
- It is occupied solely by persons who are 62 or older
- At least one person who is 55 or older in at least 80% of
the occupied units
, 3|Page
What are disadvantages of pursuing a brokers license? -
Answer-The broker is responsible for the activities of all
sponsored agents at the brokerage
General Partner? - Answer-Is responsible for the day to
day operations of the business and has full liability. At least
one general partner is required in a limited partnership.
The general Partner is most often the general "promoter"
When two or more parties join together to create and
operate a Real Estate Investment is called - Answer-A
Syndicate
Exclusive right to sell - Answer-Real estate brokers
recommends this listing which grants an exclusive right to
sell the property during the listing term. A commission is
paid even if the property is sold by the owner.
Procuring Cause of Sale - Answer-The effort that results in
the sale of property - the act of bringing a ready, willing
and able buyer to a seller resulting the sale of the seller's
property. The open listing has resulted in many lawsuits
between brokers each claiming commission. These
actions are known as procuring cause lawsuits.
