TEXAS State Real Estate Exam Prep (Champions
School of Real estate Chapters 1-6) /Questions And
Answers
Quiz :TREC was created in _________ to administer the provisions of the
license act which passed in _______. - √Answer :1949, 1939
Quiz :Trec has the authority to make _________ and __________. -
√Answer :Rules, regulations
Quiz :TREC consists of how many members? - √Answer :Nine members - six
licensed brokers and 3 members of the public. All are appointed by governor
and approved by senate
Quiz :The broker lawyer committee consists of: - √Answer :13 members. 6
brokers appointed by trec and 6 lawyers appointed by the state bar
association. 1 is a public member appointed by governor
, Quiz :Penalties for unlicensed activity - √Answer :Class A misdemeanor, not
to exceed $4000 for each penalty, or up to 1 year in prison or both. Each day a
violation continues may be considered a separate violation.
Quiz :Administrative penalties for unlicensed activity - √Answer :up to $5,000
per day for violation of the license act, by any person, licensed or unlicensed.
Quiz :Real estate recovery trust account - √Answer :($50,000 max per
transaction and $100,000 max for any one licensee.)
If fund falls below $1 mill, trec can charge all licensee's a $10 fee until balance
goes back up to $1.7 million. If balance is above $3.5 million, Trec reduces
value by flushing excess to the general fund of of texas.
Quiz :Non-resident broker - √Answer :A broker with a Texas Real Estate
brokers license, but no home or office in Texas
Quiz :Trec has the authority to license _______________________________. -
√Answer :Real estate inspectors
Quiz :Fidelity - √Answer :license holder is a fiduciary to his client. faithfulness;
loyalty
Quiz :Integrity - √Answer :Will avoid misrepresentation by commission or
omission
Quiz :Competency - √Answer :Be knowledgeable, informed, and educated
Quiz :Customer Information notice 1-2 - √Answer :Notifies the public of the
recovery trust account. Must be DISPLAYED in a prominent place in brokers
office
Quiz :Discriminatory practices - √Answer :No license holder shall inquire
about, respond to or facilitate inquires about or make disclosures indicating
any discriminatory preferences or limitations
Quiz :Commingling money - √Answer :earnest money must be placed in an
escrow account, not in with broker personal or operating accounts
Quiz :Conversion - √Answer :spending commingled funds is also prohibited
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