State Prep - Texas RE Exam Questions and v Answers 2024

State Prep - Texas RE Exam Questions and v Answers 2024 TREC has the power to order witnesses to appear and/or produce records of documents for its investigations and hearings. This is called subpoena power. If a license holder fails to respond to a subpoena, what can TREC do? (a) TREC can assess an administrative penalty against the license holder for up to $4,000. (b) TREC can immediately revoke the license of the license holder without a hearing. (c) TREC can file suit with the Attorney General to enforce the subpoena. (d) TREC can file charges of felony against the license holder, based on fraud. (c) TREC can file suit with the Attorney General to enforce the subpoena. A license holder in violation of the TRELA has received a summons from TREC that a hearing will be held regarding the possible revocation or suspension of his license. The license holder fails to respond to the summons. What will TREC do? (a) Schedule a hearing in the county court where the license holder practices real estate (b) Schedule a hearing at the TREC office in Austin (c) Schedule a hearing in the district court serving the license holder (d) Schedule a hearing at the main office or business address of the license holder (b) Schedule a hearing at the TREC office in Austin With the knowledge and consent of her broker/employer, an unlicensed assistant is showing property to prospective buyers. What is true about this situation? (a) The broker and unlicensed assistant are both guilty of a third degree felony (b) Both the broker and unlicensed assistant can be fined an administrative penalty of $5,000 per day (c) Only the unlicensed assistant can be fined by TREC for this activity (d) Only the broker can be fined by TREC for this activity (b) Both the broker and unlicensed assistant can be fined an administrative penalty of $5,000 per day TREC has received an application for a Texas Real Estate Sales License from Mary. Mary has completed all her educational requirements, and passed the state exam. At this point TREC will begin the background check. Which of the following statements is FALSE? (a) TREC has no time limit for determining integrity (b) TREC has 30 days to complete the background check (c) TREC has 30 days to notify Mary of a decision to disapprove her application (d) Mary has 10 days to appeal a denial of her application (b) TREC has 30 days to complete the background check Marcos was a Texas licensed Real Estate Sales agent for some time. He then chose to become inactive and TREC has been holding his license in inactive status. He now wishes to activate the license. What will he have to do? (a) Apply through a broker, pay $50 and take a 30-hour continuing education course (b) Apply through a broker, pay $200 and take a 30-hour continuing education course (c) Apply through a broker, pay $50 and take a 18-hour continuing education course (d) Apply through a broker, pay $200 and take a 15-hour continuing education course (c) Apply through a broker, pay $50 and take a 18-hour continuing education course A license holder has defaulted on his Texas State Student loans. As a result of this TREC will: (a) require the license holder to pay a $200 penalty to renew his license (b) revoke the license of the license holder immediately (c) refuse to renew the license of this individual unless and until the loan payments are brought up to date (d) require the license holder to move his license to inactive status (c) refuse to renew the license of this individual unless and until the loan payments are brought up to date When a license holder markets his own property, he should: (a) Use the IABS to disclose his interest in the property (b) Use the TREC promulgated form to disclose his interest in the property (c) Not mention his interest unless the buyer decides to buy the property (d) Inform the buyer that he is a license holder, and the owner of the property (d) Inform the buyer that he is a license holder, and the owner of the property A Texas broker may pay a commission to: (a) A foreign broker who doesn't negotiate in Texas (b) A licensed attorney in Texas (c) An in-house employee of a principal (d) Any unlicensed person for a referral (a) A foreign broker who doesn't negotiate in Texas Which of the following actions is NOT a violation of the Texas Real Estate License Act? (a) A broker offers a guaranteed buy back of a property for a set price, if the purchaser is not happy with the investment after a two-year period of ownership (b) A broker guarantees a buyer that, based on past performance, an investment property will appreciate over the next two years (c) Selling real estate by lottery (d) Placing a sign to sell or lease real property with only the verbal consent of the owner (a) A broker offers a guaranteed buy back of a property for a set price, if the purchaser is not happy with the investment after a two-year period of ownership A sales agent wished to transfer to a new broker. When may he engage in the business? (a) When the new broker receives a license for him from TREC (b) After a waiting period of 48 hours (c) When his fees and sponsorship forms have been mailed to TREC (d) When TREC receives his request for transfer (c) When his fees and sponsorship forms have been mailed to TREC Which of the following is the responsibility of the broker? (a) The listing advertisements of the sales agents he sponsors (b) The continuing education of the license holders he sponsors (c) The financial opportunities and success of the license holders he sponsors (d) The timely renewal of licenses by the sales agents he sponsors (a) The listing advertisements of the sales agents he sponsors Without proper authorization, a sales agent may accept a commission directly from: (a) A seller (b) A buyer (c) His broker (d) The title company (c) His broker A broker has a listed property. The owner mentions that a neighbor is interested in selling. The broker meets with the neighbor and secures a second listing. Both listings sell and the broker earns a commission on each. The broker would like to thank the owner of the first listed property for this referral. How can the broker thank the seller? (a) He can give the seller a gift of $50.00 cash (b) He can give the seller a gift of up to $100.00 in value, not cash (c) He can pay the seller whatever commission amount he agreed to pay for the referral (d) He cannot pay the seller any commission at all (d) He cannot pay the seller any commission at all May has listed the property at 123 Main St. The sellers have told her that the property has 2,000 sq. ft. May has verified the square footage and entered this information correctly into the MLS. John, a license holder from another firm, shows the property to some buyer customers. He tells them that the property has 2,500 sq. ft. Who is liable for this misrepresentation? (a) May and her broker (b) John and his broker (c) The seller, the listing broker and the selling broker (d) The seller, listing broker and May, selling broker and John (b) John and his broker In the event of a conflict between the statutory duties of Intermediary and the common law duties of dual agency of a broker, which takes precedence? (a) Common Law Dual Agency (b) Statutory Intermediary (c) Whichever the broker entered into first (d) Whichever the broker and the parties agree to (b) Statutory Intermediary