Texas Promulgated Forms Exam Questions with Correct Answers

Broker-Lawyer Committee - members? - what do they do with contract forms intended for use by licensees? - Answer-- 6 brokers selected by the commission - 6 lawyers appointed by the president of the State Bar of Texas - 1 member appointed by the governor - draft and revise What is the different between TREC promulgated and TREC approved forms? - Answer-- promulgated are generally mandatory while approved may be used but are not mandatory When a licensee fills out promulgated forms, what kind of law are the practicing? - Answer-- this is not considered practicing law What are the exemptions for using a promulgated contract? (4) - Answer-(1) licensee is functioning solely as a principal, not as an agent (2) agency of the US government requires that a different form be used (3) form has been prepared by a property owner or by an attorney and is required by the property owner (4) no standard form exists and the licensee uses a form prepared by an attorney or the Broker-Lawyer Committee How can forms be reproduced? (4) - Answer-(1) Numbered copies obtained from the commission (2) Printed copies made from copies obtained from the commission (3) Legible photocopies of such copies (4) Computer printers, following mandatory guidelines When are changes to forms allowed? (3) - Answer-(1) to add the business name or logo of the broker at the top of the form outside the border, (2) to insert the broker's name in any blank provided for that purpose, and (3) when parties instruct the licensee to strike or add to the contract form (be careful not to change contractual intent) If a licensee practices law even though unauthorized, what will the commission do? - Answer-- they shall suspend or revoke the license or certificate of registration of a license or certificate holder