Texas State Portion Real Estate Exam
1. Who is responsible for any wrongs done by a salesperson while acting with-
in the scope of the agency agreement?
ANS The broker is liable for the wrongdoingof his or her salespersons. The
principal is liable for any wrongs committed by the broker while acting within the
scope of the agency agreement.
2. what is the distinction between sales contracts and option contracts?
ANS Onecharacteristic of sales contracts is mutual obligation. Option contracts
lack mutual obligation. The buyer in an option contract is not obligated to buy.
3. A listing agreement must contain
ANS
a standard street address is sufficient.
4. If the commission investigates a complaint and determines that an indi-
vidual's real estate license should be suspended or revoked, the licensee
is entitled to a hearing before the commission within how many days after
the commission reaches its decision?
ANS A licensee who faces suspension or
,revocation of their license is entitled to a hearing within 30 days of the commission
reaching their decision.
5. Which of the licensed entities does not fall under the regulatory authori-
ty of the Texas Real Estate Commission?
ANS The Texas Appraiser Licensing and Certification Board has jurisdiction over
state licensed and certified appraisers. In addition to licensing brokers and
salespersons, the Texas Real Estate Commissionis responsible for licensing real
estate inspectors and for regulation of companies that sell and issue residential
service contracts ("home warranties"). (Article 65736,Vernon's Texas Civil
Statutes.
6. A licensee in Texas may not practice law, unless licensed and authorized to
do so in Texas. Practicing law includes altering contracts, or drawing up
ANS
ANS a deed, deed of trust, will, or other written instrument that may transfer or
affect the title to land.
7. What penalties may a licensee who breaches the agency relationship face?-
ANS A licensee who breaches the agency relationship may be sued for damages,
termination of the contract, and/or non-payment of the commission.
,8. Undisclosed dual agency is
ANS
a violation of the TRELA.
9. What is the composition of the Broker-Lawyer Committee?
ANS Six broker mem-bers are appointed by the Texas Real Estate Commission; six
attorney members areappointed by the President of the State Bar of Texas. The
appointees serve a termof six years with one-third of them being appointed every
two years.
10. A licensee must disclose any existing agency relationships to a new client.
This disclosure
ANS
may be done orally or in writing.
11. A broker may do which of the following for an individual without actually
representing the individual?
ANS A broker may obtain financing, assist in locating a property, and prepare a
contract or lease for an individual without representing theindividual.
, 12. A real estate licensee must notify the real estate program manager if
ANS
A licensee must notify the real estate program manager within 20 days of
receiving any criminal complaint, information, indictment, or conviction in which
the licenseeis named as a defendant; or entry of a civil court order, verdict, or
judgment, againstthe licensee in any court of competent jurisdiction in which the
subject matter thereininvolves any real estate or business-related activity by the
licensee.
13. Pamela, who lives in a suburb in which many homes are rented, decides to
open a rental agency in order to assist her friends in finding suitable renters.
Pamela's conduct is
ANS unacceptable because it involves an activity for which a realestate license is
required.
14. The sole broker of a brokerage firm has his or her real estate license sus-
pended for two years. What would happen to the licenses of the salespersons
affiliated with this broker?
ANS If the broker's license is suspended or revoked, the salespersons' licenses
are made inactive and must be returned to the commission.A salesperson's
license may be made active when the salesperson is sponsored bya new broker.
1. Who is responsible for any wrongs done by a salesperson while acting with-
in the scope of the agency agreement?
ANS The broker is liable for the wrongdoingof his or her salespersons. The
principal is liable for any wrongs committed by the broker while acting within the
scope of the agency agreement.
2. what is the distinction between sales contracts and option contracts?
ANS Onecharacteristic of sales contracts is mutual obligation. Option contracts
lack mutual obligation. The buyer in an option contract is not obligated to buy.
3. A listing agreement must contain
ANS
a standard street address is sufficient.
4. If the commission investigates a complaint and determines that an indi-
vidual's real estate license should be suspended or revoked, the licensee
is entitled to a hearing before the commission within how many days after
the commission reaches its decision?
ANS A licensee who faces suspension or
,revocation of their license is entitled to a hearing within 30 days of the commission
reaching their decision.
5. Which of the licensed entities does not fall under the regulatory authori-
ty of the Texas Real Estate Commission?
ANS The Texas Appraiser Licensing and Certification Board has jurisdiction over
state licensed and certified appraisers. In addition to licensing brokers and
salespersons, the Texas Real Estate Commissionis responsible for licensing real
estate inspectors and for regulation of companies that sell and issue residential
service contracts ("home warranties"). (Article 65736,Vernon's Texas Civil
Statutes.
6. A licensee in Texas may not practice law, unless licensed and authorized to
do so in Texas. Practicing law includes altering contracts, or drawing up
ANS
ANS a deed, deed of trust, will, or other written instrument that may transfer or
affect the title to land.
7. What penalties may a licensee who breaches the agency relationship face?-
ANS A licensee who breaches the agency relationship may be sued for damages,
termination of the contract, and/or non-payment of the commission.
,8. Undisclosed dual agency is
ANS
a violation of the TRELA.
9. What is the composition of the Broker-Lawyer Committee?
ANS Six broker mem-bers are appointed by the Texas Real Estate Commission; six
attorney members areappointed by the President of the State Bar of Texas. The
appointees serve a termof six years with one-third of them being appointed every
two years.
10. A licensee must disclose any existing agency relationships to a new client.
This disclosure
ANS
may be done orally or in writing.
11. A broker may do which of the following for an individual without actually
representing the individual?
ANS A broker may obtain financing, assist in locating a property, and prepare a
contract or lease for an individual without representing theindividual.
, 12. A real estate licensee must notify the real estate program manager if
ANS
A licensee must notify the real estate program manager within 20 days of
receiving any criminal complaint, information, indictment, or conviction in which
the licenseeis named as a defendant; or entry of a civil court order, verdict, or
judgment, againstthe licensee in any court of competent jurisdiction in which the
subject matter thereininvolves any real estate or business-related activity by the
licensee.
13. Pamela, who lives in a suburb in which many homes are rented, decides to
open a rental agency in order to assist her friends in finding suitable renters.
Pamela's conduct is
ANS unacceptable because it involves an activity for which a realestate license is
required.
14. The sole broker of a brokerage firm has his or her real estate license sus-
pended for two years. What would happen to the licenses of the salespersons
affiliated with this broker?
ANS If the broker's license is suspended or revoked, the salespersons' licenses
are made inactive and must be returned to the commission.A salesperson's
license may be made active when the salesperson is sponsored bya new broker.
