Texas Real Estate |Questions and 100% Correct Answers
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Course
Texas Real Estate
Institution
Texas Real Estate
TREC has only two promulgated lease forms - Answer 1. Buyer's Temporary Residential
Lease - for use when the buyer occupies the property for no more than 90 days prior to
closing.
2. Seller's Temporary Residential Lease - for use when the seller occupies the property
for no more than 90 days af...
Texas Real Estate |Questions and 100% Correct
Answers
TREC has only two promulgated lease forms - Answer 1. Buyer's Temporary Residential
Lease - for use when the buyer occupies the property for no more than 90 days prior to
closing.
2. Seller's Temporary Residential Lease - for use when the seller occupies the property
for no more than 90 days after closing.
right of first refusal clause - Answer IN A LEASE AGREEMENT GIVES THE TENANT THE
RIGHT TO PURCHASE THE PROPERTY BY MATCHING WHAT SOMEONE ELSE HAS
OFFERED THE LANDLORD OR BY MAKING A BETTER OFFER.
Lease Purchase - Answer IS A TYPE OF OPTION CONTRACT THAT GIVES THE TENANT THE
RIGHT TO PURCHASE AT A PREDETERMINED PRICE BEFORE SOME TIME IN THE FUTURE.
THEY ARE NOT OBLIGATED TO BUY THE PROPERTY, BUT THE SELLER IS OBLIGATED TO
SELL IT TO THEM AT THAT PRICE IF THEY DECIDE TO EXERCISE THEIR OPTION.
right of first refusal - Answer giving the tenant the right to purchase the leased property
by matching or bettering any offer before the property will be sold to someone else.
Deceptive Trade Practices Act (DTPA) - Answer • Goods — are defined as tangible
chattels (real property is tangible when purchased or leased. Under DTPA, the sale of a
house is considered a good).(termites, something wrong w/property)
• Services — means work, labor, or repair of goods. Brokerage is a service.
• Consumer — an individual, corporation, partnership, or government source who
seeks to acquire or purchase the goods or services.
say true statements
,KNOW THAT PUFFING OR PUFFERY IS NOT CONSIDERED MISREPRESENTATION UNLESS
IT BECOMES EXAGGERATED. SIMPLY USING ADJECTIVES TO GIVE YOUR OPINION OF THE
VIEW OR THE LANDSCAPING IS OKAY (THE MOST BEAUTIFUL VIEW), BUT TALKING
ABOUT THE QUALITY OF THE WATER (BEST WATER IN THE WORLD) OR THE QUALITY OF
ROOFING SHINGLES OR BUILDING MATERIALS COULD BE MISREPRESENTATION AND
NOT JUST PUFFING.
Seller's Disclosure Notice - Answer is to have the owner of the property disclose all facts
and defects concerning the property.
Exceptions to the Seller's Disclosure Notice - Answer SUCH AS BANKS WHO
FORECLOSED, FIDUCIARIES FOR OTHER PEOPLE SUCH AS TRUSTEES, EXECUTORS,
ADMINISTRATORS, ETC. AND THAT IT IS NOT REQUIRED ON NEW CONSTRUCTION
WHICH HAS NEVER BEEN OCCUPIED OR ON A SALE WHERE THE DWELLING IS SO
DILAPIDATED THAT IT IS NOT WORTH MORE THAN 5% OF THE ENTIRE VALUE OF THE
PROPERTY
Statutory Defenses - Answer ARE THOSE THAT ARISE OUT OF LAW, SUCH AS WRITTEN
INFORMATION OBTAINED FROM GOVERNMENT RECORDS. (QUOTING SQUARE
FOOTAGE FROM THE COUNTY APPRAISAL RECORDS.)
Senate Bill 489 - Answer GAVE US SOME PROTECTIONS UNDER DTPA SO WE ARE NO
LONGER AUTOMATICALLY LIABLE FOR MISREPRESENTATIONS OR CONCEALMENT OF
MATERIAL FACTS MADE BY THE PARTIES IN THE TRANSACTION OR THOSE MADE BY A
SUBAGENT. WE AOULD ONLY BE LIABLE IF WE KNEW OF THE MISREPRESENTATION AND
FAILED TO DISCLOSE OUT KNOWLEDGE. BROKERS, HOWEVER, ARE STILL LIABLE FOR THE
MISREPRESENTATIONS MADE BY THEIR SPONSORED AGENTS.
Texas Real Estate License Act (TRELA) misrepresentation - Answer (d) A party is not
liable for a misrepresentation or a concealment of a material fact made by a license
holder in
a real estate transaction unless the party:
,(1) knew of the falsity of the misrepresentation or concealment; and
(2) failed to disclose the party's knowledge of the falsity of the misrepresentation or
concealment
SELLER'S DISCLOSURE - Answer KNOW THAT MOST SELLERS IN TEXAS MUST PREPARE A
SELLER'S DISCLOSURE NOTICE TO GIVE TO THE BUYERS STATING ANYTHING THEY KNOW
ABOUT DEFICIENCIES, NEEDED REPAIRS OR MATERIAL INFORMATION RELATED TO THE
PROPERTY. IT SHOULD ONLY BE FILLED OUT BY THE SELLER AND THE AGENT SHOULD
ENCOURAGE THEM TO BE THOROUGH AND HONEST IN THEIR DISCLOSURES. EITHER THE
TREC FORM, THE TX REALTOR'S FORM OR SOME OTHER WRITTEN DISCLOSURE CAN BE
USED AS LONG AS IT GIVES THE MINIMUM DISCLOSURE REQUIRED BY LAW.
Agency Law - Answer understanding the relationship between the parties to a
transaction, sales agents, brokers, and others is vitally important
Contract Law - Answer license holders must understand contract law in order to assist in
the creation of a valid and enforceable contract and must understand different forms of
property ownership.
The general presumption is that an individual signing a contract has read it and
understands it.
Real estate licensing laws and rules - Answer an understanding of state licensing law and
regulation is essential.
Common Law - Answer is a body of law developed in England and based upon "common
sense" and local custom. Common law expanded over the years as a result of prior court
decisions.
Advertising - Answer finance and fair-housing regulations are all concerns when
advertising real estate.
, Consumer Protection Laws - Answer license holders must stay abreast of changes and
trends in consumer protection laws that address the disclosure of material defects in a
property.
Texas Real Estate License Act (TRELA) - Answer Prior to 1939, an individual in Texas
could practice real estate brokerage without a license.
Texas Real Estate Commission (TREC) - Answer In 1949, the Texas Real Estate
Commission (TREC) was established to administer and enforce the Act.
(TREC is a nine-member commission)
Commission is to protect the public.
Inactive license status - Answer A sales agent license holder with no sponsoring broker is
inactive, and may not receive commissions of any kind and may not practice real estate
brokerage.
Nonresident brokers - Answer A foreign broker or a broker from another state may
collect a commission from a Texas broker, as long as that broker does not negotiate in
Texas.
exceptions no license - Answer Attorneys licensed in Texas.
Auctioneers.
Salespeople representing a new home builder
The sale of a property by the owner.
Oil and gas transactions are exempt in TRELA SEC. 1101.005 9(A).
The sale of a property in a foreclosure.
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