TEXAS REAL ESTATE (STATE EXAM
PREP) WITH COMPLETE
SOLUTIONS
How long does a broker have to deposit earnest money in an escrwo account? -
ANSWER-The broker has until close of business of the second business day after
the broker receives the funds.
The option period ends: - ANSWER-At 5:00 pm on the day mentioned in the contract
(found Paragraph 5 of sales contract)
What are the requirements to become a licensed broker in TX? - ANSWER-900
hours of education + 360 points, in addition to 4 out of past 5 years active real estate
salesperson licensure.
The Texas Real Estate License Act was passed in: - ANSWER-1939
The designated officer of a licensed real estate corporation owns 15% of the
corporation. How much E&O insurance is required by TREC? - ANSWER-$0 ( TREC
requires $0 E&O insurance if the designated officer owns 10% or more of the
corporation)
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? -
ANSWER-Schedule a hearing at the SOAH (State Office of Administrative Hearings)
in Austin
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 - ANSWER-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
When must representation be disclosed and in what form? - ANSWER-Orally or in
writing at first contact.
TREC rules require a license holder to disclose his dual role if he is representing
himself in a transaction. TREC also requires a license holder to disclose if his client
is his: - ANSWER-Spouse, child or parent
, What is the criminal penalty for engaging in the real estate brokerage business in
Texas without first becoming licensed by TREC? - ANSWER-A fine of not more than
$4,000
Disclosure of agency must be given: - ANSWER-At first substantive dialogue
An appointed associate under intermediary: - ANSWER-Can give advice and
opinions to one party to the transaction
Which of the following is the responsibility of the broker? - ANSWER-The listing
advertisements of the sales agents he sponsors
Mary 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 clients. He tells them that the property has 2,500 sq. ft.
Who is liable for this misrepresentation? - ANSWER-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? -
ANSWER-Statutory Intermediary
An unlicensed assistant prospects for leads for their agent employer. Who could be
fined, and/ or have a license suspended or revoked by TREC? - ANSWER-The
unlicensed assistant, agent and sponsoring broker
When a broker posts pictures of other brokers' listings on his website, what is
required? - ANSWER-Written permission
How much Continuing Education (CE) may be carried over to the next renewal
period? - ANSWER-None
An unlicensed person owns an option to purchase real property for a $190,000. He
advertises the option for sale for $20,000. This action is: - ANSWER-Only legal with
full disclosure of the nature of the agreement
An HOA can ban which of the following?
a) Political signs
b) Flags of the USA or any branch of the military service
c) Dog breeds.
d) Privacy Fences - ANSWER-d) Privacy Fences
Which of the following properties would qualify for homestead protection in Texas? -
ANSWER-A life estate of someone who occupies the property as their primary
home.
Which of the following can a licensed real estate sales person do?
a) Pay a referral commission
PREP) WITH COMPLETE
SOLUTIONS
How long does a broker have to deposit earnest money in an escrwo account? -
ANSWER-The broker has until close of business of the second business day after
the broker receives the funds.
The option period ends: - ANSWER-At 5:00 pm on the day mentioned in the contract
(found Paragraph 5 of sales contract)
What are the requirements to become a licensed broker in TX? - ANSWER-900
hours of education + 360 points, in addition to 4 out of past 5 years active real estate
salesperson licensure.
The Texas Real Estate License Act was passed in: - ANSWER-1939
The designated officer of a licensed real estate corporation owns 15% of the
corporation. How much E&O insurance is required by TREC? - ANSWER-$0 ( TREC
requires $0 E&O insurance if the designated officer owns 10% or more of the
corporation)
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? -
ANSWER-Schedule a hearing at the SOAH (State Office of Administrative Hearings)
in Austin
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 - ANSWER-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
When must representation be disclosed and in what form? - ANSWER-Orally or in
writing at first contact.
TREC rules require a license holder to disclose his dual role if he is representing
himself in a transaction. TREC also requires a license holder to disclose if his client
is his: - ANSWER-Spouse, child or parent
, What is the criminal penalty for engaging in the real estate brokerage business in
Texas without first becoming licensed by TREC? - ANSWER-A fine of not more than
$4,000
Disclosure of agency must be given: - ANSWER-At first substantive dialogue
An appointed associate under intermediary: - ANSWER-Can give advice and
opinions to one party to the transaction
Which of the following is the responsibility of the broker? - ANSWER-The listing
advertisements of the sales agents he sponsors
Mary 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 clients. He tells them that the property has 2,500 sq. ft.
Who is liable for this misrepresentation? - ANSWER-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? -
ANSWER-Statutory Intermediary
An unlicensed assistant prospects for leads for their agent employer. Who could be
fined, and/ or have a license suspended or revoked by TREC? - ANSWER-The
unlicensed assistant, agent and sponsoring broker
When a broker posts pictures of other brokers' listings on his website, what is
required? - ANSWER-Written permission
How much Continuing Education (CE) may be carried over to the next renewal
period? - ANSWER-None
An unlicensed person owns an option to purchase real property for a $190,000. He
advertises the option for sale for $20,000. This action is: - ANSWER-Only legal with
full disclosure of the nature of the agreement
An HOA can ban which of the following?
a) Political signs
b) Flags of the USA or any branch of the military service
c) Dog breeds.
d) Privacy Fences - ANSWER-d) Privacy Fences
Which of the following properties would qualify for homestead protection in Texas? -
ANSWER-A life estate of someone who occupies the property as their primary
home.
Which of the following can a licensed real estate sales person do?
a) Pay a referral commission
