Texas State Exam questions fully solved & updated 2024

TREC 9 members all appointed by govorner -6 broker members -3 non-licensed members with no financial interest in real estate TREC Functions -Enforce TRELA -Adopt and enforce rules of real estate practice -deals with licensing(issuing, revoking, reinstating) -protect consumers from fraudulent activity of license holders Broker-Lawyer Committee 13 members -6 attorneys appointed by bar -6 brokers appointed by TREC -1 public member creates, edits, and recommends contract forms to TREC, which then decides to either promulgate the recommended forms What is the Statute of Limitations for submission of consumer complaints to TREC? 4 years Real Estate Recovery Trust Account a monetary fund to reimburse members of the public who have been financially harmed by the unlawful practices of its license holders -$50,000 for a single incident -$100,000 per license holder (to receive compensation consumer must file w/in 2 years) The trust account is funded by fees periodically paid by all licensees Agents are required to disclose the existence of the trust fund to the public TRELA Texas Real Estate License Act -a person may not act or represent themselves as a broker, salesperson, or rental locator unless that person receives a license evidencing that authority -licensed sales agent must be associated or sponsored by a broker to perform the acts of real estate practice TRELA outlines what acts require a real estate license: -Someone is selling real estate in Texas, including license holders from other states working with license holders who are in Texas -showing a listing of a broker or licensed sales agent -supervising licensed people -trying to acquire or negotiate listings in Texas -A business entity is receiving income from a real estate transaction -is handling the funds in property management -is acting as an apartment locator -is receiving valuable consideration while renting out or selling someone else's property A license is NOT required when: -A person is selling, buying, or leasing their own property -A person is selling their portion of a joint ownership in a property -A business entity is selling, buying, or leasing its own property -A real estate association or MLS does not receive a portion of the commission upon closing of a transaction -An auctioneer is taking bids on a property An employee of a real estate office or sales agent confirms information that a caller is asking about -A person is acting as an on-site manager of an apartment complex -A new home sales employee is selling a new home for a homebuilder -A person is a licensed attorney in Texas Brokers License -must complete 900 hours of education (60 semester hours) -an applicant for a broker license must have at least four years of active experience in this state as a license holder during the 60 months preceding the date that the application is filed. License status active (can practice real estate) inactive (can't and doesnt have a sponsoring broker) Expired (can't) errors and omissions insurance policy is a form of liability insurance which helps protect companies from bearing the full cost of defending against a negligence claim made by a client and damages awarded in such a civil lawsuit. -if the designated broker does not own more than 9% of company then E&O is required TREC's Canons of Professional Ethics and Conduct These are not laws, but rules for the conduct of license holders in the practice of real estate. -primary duty of the real estate agent is to represent the interests of the agent's client. Canons 1. Fidelity-must protect and promote the interests of your client, but remain obligated to treat all parties with fairness and honesty. 2. Integrity-behave ethically, avoid misrepresentation 3. Competency-be knowledgeable and informed 4. Consumer Info-Every broker must display the Consumer Protection Notice TREC No. CN 1-2 5. Discrimintory Practices-prohibited from discriminating against individuals on the basis of race, color, religion, sex, national origin, ancestry, familial status, or disability. 6. Info about Brokerage services conversion The act of a broker or sales agent using a client's or customer's money for their own Practicing Real estate in Texas Only someone licensed in the state of Texas can practice real estate in Texas. Promulgated means that it is a widely used contract or form endorsed by a governing group. -if a form is promulgated, it is required that all real estate sales agents use this form when completing the transaction for which it was created -there are exceptions License holders may use non-promulgated contracts if: -The contract is prepared by an attorney or property owner and is requested by the property owner -The license holder is functioning solely as a principal, and not as an agent (i.e., an agent selling