TREC (STATE EXAM) QUESTIONS &
ANSWERS ALL PASSED ALREADY
GRADED A+
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 is the max payments TREC will pay out of the Recovery Trust? - correct answer
✔✔100,000 per license holder and 50,000 per transaction
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
ANSWERS ALL PASSED ALREADY
GRADED A+
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 is the max payments TREC will pay out of the Recovery Trust? - correct answer
✔✔100,000 per license holder and 50,000 per transaction
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
