TEXAS REAL ESTATE EXAM; STATE
PORTION QUESTIONS AND
ANSWERS 100% CORRECT
How many members in TREC? - ANSWER-9: 3 general public, 6 brokers
Who appoints, confirms TREC members? - ANSWER-Governor appoints, senate
approves
How many members on the Broker-Lawyer Committee? - ANSWER-13: 6 brokers, 6
lawyers, 1 public member
Who appoints Broker-Lawyer committee members? - ANSWER-Brokers/TREC,
Lawyers/Pres of State Bar, Public Member/Governor
Where is the Real Estate Advisory Committee? - ANSWER-Texas A & M
Who is on the Real Estate Advisory Committee? - ANSWER-10 members: 6 brokers,
3 public members, 1 ex TREC officio
How long does an individual have after an incident to file a complaint against a
license holder? - ANSWER-4 years
If your license is revoked by TREC, you may..... - ANSWER-appeal to the district
court
Brokerage without a license is defined as a - ANSWER-Class A Misdemeanor
Penalties for Brokerage without a license - ANSWER-Fine up to $4,000;
imprisonment in county jail for not more than 1 year, or both
Additional penalties for brokerage without a license - ANSWER-Civil penalties of up
to three times the amount of money received
The Real Estate Recovery Account was created to - ANSWER-pay aggrieved
persons who suffered monetary losses due to unscrupulous acts of license holders.
If Real Estate Recovery Trust Account is below $1 million - ANSWER-Brokers and
licensees pay a pro rata share of $10 upon license renewal
If Real Estate Recovery Trust Account is above $3.5 million, - ANSWER-the excess
goes into the State's General Fund
When an amount if paid out of the Real Estate Recovery Trust Account on behalf of
a license holder, - ANSWER-the license of the person can be suspended or revoked.
It may never be recovered until the account is paid back with interest.
, Maximum amount payable by the Real Estate Recovery Trust Account - ANSWER-is
$100,000 per license holder and $50,000 per transaction.
Does TREC resolve disputes between license holders? - ANSWER-No
YES License - ANSWER-attorneys receiving a commission
YES License - ANSWER-Auctioneers involved in any part of a transaction, other
than calling
YES License - ANSWER-apartment locators
Yes License - ANSWER-real estate agents
Yes License - ANSWER-Business entities who receives commissions on behalf of
license holders
Yes License - ANSWER-Designated broker, officer, or manager of a Real Estate
Limited Liability Company
Yes License - ANSWER-a third party who collects rents from a single family
residence (property manager)
Yes License - ANSWER-Any business that engages in real estate brokerage must
have a licensed broker
EXEMPT License - ANSWER-attorneys receiving a fee but no commission split
EXEMPT License - ANSWER-court appointed receivers, trustees, guardians, and
sheriffs; anyone engaged in or carrying out foreclosure sales
EXEMPT License - ANSWER-Administrators and executors of a will
EXEMPT License - ANSWER-on-site apartment managers
EXEMPT License - ANSWER-new home sales agents working for a builder
EXEMPT License - ANSWER-cemetary lot sales agents
EXEMPT License - ANSWER-a person selling his own property; FSBO
EXEMPT License - ANSWER-an employee leasing/renting property for the owner
EXEMPT License - ANSWER-corporate employees buying/selling/leasing corporate
property
EXEMPT License - ANSWER-hotel/motel personnel
EXEMPT License - ANSWER-an attorney in fact
PORTION QUESTIONS AND
ANSWERS 100% CORRECT
How many members in TREC? - ANSWER-9: 3 general public, 6 brokers
Who appoints, confirms TREC members? - ANSWER-Governor appoints, senate
approves
How many members on the Broker-Lawyer Committee? - ANSWER-13: 6 brokers, 6
lawyers, 1 public member
Who appoints Broker-Lawyer committee members? - ANSWER-Brokers/TREC,
Lawyers/Pres of State Bar, Public Member/Governor
Where is the Real Estate Advisory Committee? - ANSWER-Texas A & M
Who is on the Real Estate Advisory Committee? - ANSWER-10 members: 6 brokers,
3 public members, 1 ex TREC officio
How long does an individual have after an incident to file a complaint against a
license holder? - ANSWER-4 years
If your license is revoked by TREC, you may..... - ANSWER-appeal to the district
court
Brokerage without a license is defined as a - ANSWER-Class A Misdemeanor
Penalties for Brokerage without a license - ANSWER-Fine up to $4,000;
imprisonment in county jail for not more than 1 year, or both
Additional penalties for brokerage without a license - ANSWER-Civil penalties of up
to three times the amount of money received
The Real Estate Recovery Account was created to - ANSWER-pay aggrieved
persons who suffered monetary losses due to unscrupulous acts of license holders.
If Real Estate Recovery Trust Account is below $1 million - ANSWER-Brokers and
licensees pay a pro rata share of $10 upon license renewal
If Real Estate Recovery Trust Account is above $3.5 million, - ANSWER-the excess
goes into the State's General Fund
When an amount if paid out of the Real Estate Recovery Trust Account on behalf of
a license holder, - ANSWER-the license of the person can be suspended or revoked.
It may never be recovered until the account is paid back with interest.
, Maximum amount payable by the Real Estate Recovery Trust Account - ANSWER-is
$100,000 per license holder and $50,000 per transaction.
Does TREC resolve disputes between license holders? - ANSWER-No
YES License - ANSWER-attorneys receiving a commission
YES License - ANSWER-Auctioneers involved in any part of a transaction, other
than calling
YES License - ANSWER-apartment locators
Yes License - ANSWER-real estate agents
Yes License - ANSWER-Business entities who receives commissions on behalf of
license holders
Yes License - ANSWER-Designated broker, officer, or manager of a Real Estate
Limited Liability Company
Yes License - ANSWER-a third party who collects rents from a single family
residence (property manager)
Yes License - ANSWER-Any business that engages in real estate brokerage must
have a licensed broker
EXEMPT License - ANSWER-attorneys receiving a fee but no commission split
EXEMPT License - ANSWER-court appointed receivers, trustees, guardians, and
sheriffs; anyone engaged in or carrying out foreclosure sales
EXEMPT License - ANSWER-Administrators and executors of a will
EXEMPT License - ANSWER-on-site apartment managers
EXEMPT License - ANSWER-new home sales agents working for a builder
EXEMPT License - ANSWER-cemetary lot sales agents
EXEMPT License - ANSWER-a person selling his own property; FSBO
EXEMPT License - ANSWER-an employee leasing/renting property for the owner
EXEMPT License - ANSWER-corporate employees buying/selling/leasing corporate
property
EXEMPT License - ANSWER-hotel/motel personnel
EXEMPT License - ANSWER-an attorney in fact
