TREC (State Exam) Updated ACTUAL
QUESTIONS AND CORRECT ANSWERS
When was TREC Created? - CORRECT ANSWER 1939
What Does TREC have the authority to do? - CORRECT ANSWER Make rules and
regulations
How many members are in TREC - CORRECT ANSWER 9 Members
6 Brokers
3 General Public
How are TREC members appointed? - CORRECT ANSWER By the governor or
senate
What happens if a License Holder fails to respond to a subpoena - CORRECT
ANSWER TREC can file a suit with the attorney general
Who writes promulgated contract forms - CORRECT ANSWER The broker Lawyer
Committee
How many members are on the Broker Lawyer Committee? - CORRECT ANSWER 13
Members
6 Brokers - appointed by TREC
6 Lawyers - appointed by state bar association
1 public member appointed by the governor
Where is the Real Estate Center? - CORRECT ANSWER Texas A&M
,How many members are on the Texas A&M advisory Committee? - CORRECT
ANSWER 10 appointed by the governor
6 are brokers licensed for 5 years
3 representing the public
1 ex-official representing TREC
How long does a individual have to file a complaint with TREC? - CORRECT
ANSWER 4 years from the effective date of contract, or the date of the incident
What does TREC have the power to do? - CORRECT ANSWER Issue or revoke a Real
Estate License
Where are TREC hearings held? - CORRECT ANSWER Austin, unless a license
holder requests the hearing be held in their county
What happens if a license holder fails to respond to a summons from TREC - CORRECT
ANSWER TREC will automatically schedule a revocation/suspension hearing
What can you do if you license is revoked by TREC? - CORRECT ANSWER You can
appeal the decision to the district court
What happens if a person engages in real estate brokerage without having a secured license
from TREC? - CORRECT ANSWER Guilty of a class A misdemeanor, subject to a
fine not more than 4K or imprisonment in the country jail
The broker who profited is liable for 3x's the amount recieved
What is the penalty for violation of the License Act? - CORRECT ANSWER $5,000
per day for violation of the license act by any person; licensed or unlicensed
, What is the Real Estate Recovery Trust Account - CORRECT ANSWER Created by
TREC to pay aggrieved persons who suffered a monetary due to acts of a license holder
How much money can an aggrieved person receive from the recovery trust account? -
CORRECT ANSWER 3x's the amount of money lost
What happens if the recovery trust account is less than 1 million? - CORRECT
ANSWER TREC could make agents pay the renal fee ($10) of their license or
whatever necessary to bring the amount to 1,700,000
What happens if the Recovery Trust account exceeds 3.5 Million? - CORRECT
ANSWER The excess goes into the states general fund
What happens when Recovery Trust Account balance is not below 1 million - CORRECT
ANSWER TREC simply continues to invest funds
What happens to the licensee when TREC pays an amount out of the Recovery Trust Account
- CORRECT ANSWER The license of the individual may be revoked or suspended.
The license may never be recovered until the account has been repaid with interest
What is the max payments TREC will pay out of the Recovery Trust? - CORRECT
ANSWER 100,000 per license holder and 50,000 per transaction
Who is required to have a real estate license? - CORRECT ANSWER -Attorneys
participating in a commission split
-Auctioneers involded in any part of a real estate transaction
-Apartment Locators
QUESTIONS AND CORRECT ANSWERS
When was TREC Created? - CORRECT ANSWER 1939
What Does TREC have the authority to do? - CORRECT ANSWER Make rules and
regulations
How many members are in TREC - CORRECT ANSWER 9 Members
6 Brokers
3 General Public
How are TREC members appointed? - CORRECT ANSWER By the governor or
senate
What happens if a License Holder fails to respond to a subpoena - CORRECT
ANSWER TREC can file a suit with the attorney general
Who writes promulgated contract forms - CORRECT ANSWER The broker Lawyer
Committee
How many members are on the Broker Lawyer Committee? - CORRECT ANSWER 13
Members
6 Brokers - appointed by TREC
6 Lawyers - appointed by state bar association
1 public member appointed by the governor
Where is the Real Estate Center? - CORRECT ANSWER Texas A&M
,How many members are on the Texas A&M advisory Committee? - CORRECT
ANSWER 10 appointed by the governor
6 are brokers licensed for 5 years
3 representing the public
1 ex-official representing TREC
How long does a individual have to file a complaint with TREC? - CORRECT
ANSWER 4 years from the effective date of contract, or the date of the incident
What does TREC have the power to do? - CORRECT ANSWER Issue or revoke a Real
Estate License
Where are TREC hearings held? - CORRECT ANSWER Austin, unless a license
holder requests the hearing be held in their county
What happens if a license holder fails to respond to a summons from TREC - CORRECT
ANSWER TREC will automatically schedule a revocation/suspension hearing
What can you do if you license is revoked by TREC? - CORRECT ANSWER You can
appeal the decision to the district court
What happens if a person engages in real estate brokerage without having a secured license
from TREC? - CORRECT ANSWER Guilty of a class A misdemeanor, subject to a
fine not more than 4K or imprisonment in the country jail
The broker who profited is liable for 3x's the amount recieved
What is the penalty for violation of the License Act? - CORRECT ANSWER $5,000
per day for violation of the license act by any person; licensed or unlicensed
, What is the Real Estate Recovery Trust Account - CORRECT ANSWER Created by
TREC to pay aggrieved persons who suffered a monetary due to acts of a license holder
How much money can an aggrieved person receive from the recovery trust account? -
CORRECT ANSWER 3x's the amount of money lost
What happens if the recovery trust account is less than 1 million? - CORRECT
ANSWER TREC could make agents pay the renal fee ($10) of their license or
whatever necessary to bring the amount to 1,700,000
What happens if the Recovery Trust account exceeds 3.5 Million? - CORRECT
ANSWER The excess goes into the states general fund
What happens when Recovery Trust Account balance is not below 1 million - CORRECT
ANSWER TREC simply continues to invest funds
What happens to the licensee when TREC pays an amount out of the Recovery Trust Account
- CORRECT ANSWER The license of the individual may be revoked or suspended.
The license may never be recovered until the account has been repaid with interest
What is the max payments TREC will pay out of the Recovery Trust? - CORRECT
ANSWER 100,000 per license holder and 50,000 per transaction
Who is required to have a real estate license? - CORRECT ANSWER -Attorneys
participating in a commission split
-Auctioneers involded in any part of a real estate transaction
-Apartment Locators
