Exam (elaborations)
PCF - Chapter 2 (1)
- Course
- PCF - Chapter 2
- Institution
- PCF - Chapter 2
Exam of 7 pages for the course PCF - Chapter 2 at PCF - Chapter 2 (PCF - Chapter 2 (1))
[Show more]
Seller
Follow
Content preview
PCF - Chapter 2TEXAS REAL ESTATE COMMISSION
In 1949, the Texas Real Estate Commission (TREC) was created to administer the Real Estate
License Act (Senate Bill 28, 51st Legislature, Regular Session). The purpose of the Texas Real
Estate Commission is to protect the public through regulation of licensed real estate brokerage
practitioners, real estate
inspectors, residential service companies, and entities offering timeshare interests. The
policy-making body of the Texas Real Estate Commission is a nine-member commission
appointed by the governor with the advice and consent of the senate for overlapping six-year
terms. Six members must be active in real estate as full-time brokers for five years immediately
preceding appointment. Three members must not be licensed by the commission and have no
financial interest in real estate, except as consumers. - ANS-
Chapter 531 Canons of Professional Ethics and Conduct
§531.1 FIDELITY
A real estate broker or salesperson, while acting as an agent for another, is a fiduciary. Special
obligations are imposed when such fiduciary relationships are created. They demand: that the
primary duty of the real estate agent is to represent the interests of the agent's client, and the
agent's position, in this respect, should be clear to all parties concerned in a real estate
transaction; that, however, the agent, in performing duties to the client, shall treat other parties
to a transaction fairly; that the real estate agent be faithful and
observant to trust placed in the agent, and be scrupulous and meticulous in performing the
agent's functions; and that the real estate agent place no personal interest above that of the
agent's client.
§531.2 INTEGRITY
A real estate broker or salesperson has a special obligation to exercise integrity in t - ANS-
§537.11 Use of Standard Contract Forms
When negotiating contracts binding the sale, exchange, option, lease or rental of any interest in
real property, a real estate licensee shall use only those contract forms promulgated by the
Texas Real Estate Commission (the Commission) for that kind of transaction with the following
exceptions:
• Transactions in which the license holder is functioning solely as a principal, not as an agent;
• Transactions in which an agency of the United States government requires a different form to
be used;
• Transactions for which a contract form has been prepared by a principal to the transaction or
prepared by an attorney and required by a principal to the transaction; or
• Transactions for which no standard contract form has been promulgated by the Commission,
and the license holder uses a form prepared by an attorney at law licensed by this state and
approved by the attorney for the part - ANS-
, A license holder may not:
• practice law;
• offer, give or attempt to give legal advice, directly or indirectly;
• give advice or opinions as to the legal effect of any contracts or other such instruments which
may affect the title to real estate;
• give opinions concerning the status or validity of title to real estate; or
• attempt to prevent or in any manner whatsoever discourage any principal to a real estate
transaction from employing a lawyer. - ANS-
Common Contract Mistakes:
(2) Failure to Date the Contract. Often the times for performance in the contract are calculated
from the "effective date" of the contract. If there is no effective date, it can be difficult to
compute, with certainty, the time for performance. For instance, the termination option time in
the TREC contract is calculated from the effective date. Failure to specify the effective date
could result in a buyer missing the opportunity to terminate the contract under that provision.
time for performance of the various due diligence matters in the contract. Unrealistic time
periods are unlikely to make the contract close sooner and may cause enforcement of the
contract to be jeopardized.
For instance, requiring a loan to be obtained in an unrealistic time period or negotiating an
unrealistic inspection period can increase the probability that the buyer will terminate the
contract. If there is inade - ANS-
The Texas Real Estate Broker-Lawyer Committee drafts and revises contracts that are capable
of being standardized to expedite real estate transactions and minimize controversy. The
contract forms must contain safeguards adequate to protect the principals in the transaction.
The Broker-Lawyer Committee has 13 members. Six members are licensed brokers appointed
by TREC, and six members are licensed attorneys appointed by the president of the State Bar.
One public member is appointed by the governor.
In the late 1960s and the early 1970s, the Texas State Bar Association and the Texas
Association of Realtors® attempted to resolve the dispute by agreeing to several earnest money
contracts that would be acceptable for real estate practitioners to use in their daily business.
However, any agreed upon contracts would have been valid for only members of the Texas
Association of REALTORS® and would not bind all real estate li - ANS-
APPROVED FORMS, NOTICES, AND DISCLOSURES
Agents and brokers are required to use the TREC Promulgated Forms or one provided by a
principal or his attorney. In either case, an agent or broker is not allowed to create one or add to
the existing contracts. If there is an existing addendum that address the issue, then it does not
go into paragraph 11 (Special Provisions).
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller modockochieng06. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$11.12. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78291 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now