Texas Real Estate Exam (State) Exam Study Guide with Complete Solutions

Texas Real Estate Exam (State) Exam Study Guide with Complete Solutions Texas Real Estate Commission (TREC) - Answer️️ --created in 1949 -purpose: to administer the provisions of the License Act -authority to make rules and regulations -9 members (3 represent the general public, 6 are real estate brokers) -all appointed by the governor and approved by the Senate -serve 6 year terms -has the power to subpoena books, records, and witnesses -has the power to issue or revoke Real Estate Licenses Broker Lawyer Committee - Answer️️ --writes promulgated contract forms -13 members (6 are brokers appointed by TREC, 6 are lawyers appointed by the President of the State Bar Association, 1 is a public member appointed by the governor) Real Estate Recovery Fund - Answer️️ -created by TREC to pay aggrieved persons who suffered a monetary loss due to unscrupulous acts of the licensees -persons can receive up to 3 times the amount of money lost -when an amount is paid out of it, the license of the individual is automatically revoked or suspended without a hearing (cannot be recovered until the fund has been repaid with interest) persons who must have a real estate license - Answer️️ -neys who participate in a commission split ©SOPHIABENNETT_2024/2025 EXAM SERIES Monday, September 2, 2024 9:52 AM Page | 2 oneers involved in a real estate transaction ment locators estate salespeople designated officer of a licensed real estate corporation or the designated manager of a licensed Real Estate Limited Liability Company (the designated one is a broker) 1-4 MUST BE SPONSORED BY A BROKER AND RECEIVE COMMISSIONS ONLY FROM THAT BROKER steps in obtaining a real estate license - Answer️️ -1. meet the educational requirements 2. submit an application with or without a sponsoring broker 3. submit the required fees 4. pass the state exam 5. demonstrate integrity licensing requirements - Answer️️ --18 years of age -resident of Texas at the time of application -comply with legal residency requirements (not an illegal alien) educational requirements - Answer️️ -180 classroom hours with a minimum of 120 in core real estate courses -60 hours in Principles of Real Estate, 30 hours in Law of Contracts, 30 hours in the Law of Agency are mandatory TREC Consumer information form 1-1 - Answer️️ --notifies the public of the recovery fund ©SOPHIABENNETT_2024/2025 EXAM SERIES Monday, September 2, 2024 9:52 AM Page | 3 -applies to both real estate licensees and inspectors -must be displayed in the broker's office -must be included in listing and buyer representation agreements, as well as any invoices for services Texas Real Estate License Act (TRELA) - Answer️️ --passed by legislation to protect the public against unscrupulous brokers and salesmen -rules and regulations are construed liberally with a view toward their purpose, and have the full force and effect of the law foreign broker - Answer️️ -a broker from another state -must work through resident brokers -may collect commission from a Texas broker, as long as that broker does not negotiate in Texas advertising rules - Answer️️ --broker name must be on each page of the web site -licensee's web site must include the name of sponsoring broker -when advertising listed property, broker or company name must