TREC (State Exam) Questions and answers, VERIFIED.

TREC (State Exam) Questions and answers, VERIFIED. When was TREC Created? - -1939 What Does TREC have the authority to do? - -Make rules and regulations How many members are in TREC - -9 Members 6 Brokers 3 General Public How are TREC members appointed? - -By the governor or senate What happens if a License Holder fails to respond to a subpoena - -TREC can file a suit with the attorney general Who writes promulgated contract forms - -The broker Lawyer Committee How many members are on the Broker Lawyer Committee? - -13 Members 6 Brokers - appointed by TREC 6 Lawyers - appointed by state bar association 1 public member appointed by the governor Where is the Real Estate Center? - -Texas A&M How many members are on the Texas A&M advisory Committee? - -10 appointed by the governor 6 are brokers licensed for 5 years 3 representing the public 1 ex-official representing TREC How long does a individual have to file a complaint with TREC? - -4 years from the effective date of contract, or the date of the incident What does TREC have the power to do? - -Issue or revoke a Real Estate License Where are TREC hearings held? - -Austin, unless a license holder requests the hearing be held in their county What happens if a license holder fails to respond to a summons from TREC - -TREC will automatically schedule a revocation/suspension hearing What can you do if you license is revoked by TREC? - -You can appeal the decision to the district court What happens if a person engages in real estate brokerage without having a secured license from TREC? - -Guilty of a class A misdemeanor, subject to a fine not more than 4K or imprisonment in the country jail The broker who profited is liable for 3x's the amount recieved What is the penalty for violation of the License Act? - -$5,000 per day for violation of the license act by any person; licensed or unlicensed What is the Real Estate Recovery Trust Account - -Created by TREC to pay aggrieved persons who suffered a monetary due to acts of a license holder How much money can an aggrieved person receive from the recovery trust account? - -3x's the amount of money lost What happens if the recovery trust account is less than 1 million? - -TREC could make agents pay the renal fee ($10) of their license or whatever necessary to bring the amount to 1,700,000 What happens if the Recovery Trust account exceeds 3.5 Million? - -The excess goes into the states general fund What happens when Recovery Trust Account balance is not below 1 million - -TREC simply continues to invest funds What happens to the licensee when TREC pays an amount out of the Recovery Trust Account - -The license of the individual may be revoked or suspended. The license may never be recovered until the account has been repaid with interest What is the max payments TREC will pay out of the Recovery Trust? - -100,000 per license holder and 50,000 per transaction Who is required to have a real estate license? - --Attorneys participating in a commission split -Auctioneers involded in any part of a real estate transaction -Apartment Locators -Real estate sales agents/brokers -anyone doing real estate activity with the Texas Secretary of State -Property Managers Errors and Omissions Insurance - -Needed if a agent has less than 10% interest in a real estate business, with a minimum annual limit of $1 million per occurrance If more than 10% of the business is owned then the required amount is $0 Who do all license holders receive commission from? - -a Broker People who do not have to have real estate licenses? - --Texas Licenses attorneys not dealing with commission split. All other attorneys need to be licensed in the state of Texas -Anyone carrying out a foreclosure sale -Administrators and executors of wills -On-site apartment managers -Sales agent working for a builder -Cemetery lot sales agents -A person selling their own property -Employee leasing or renting property for the owner When must TREC be notified of an assumed name? - -within 30 days of starting or stopping use of that name Where must an assumed name be filed? - -The secretary of state. TREC, and local county clerk Non-resident Broker - -Texas Licensed broker who does not have a home office in Texas. Cannot represent a buyer or seller in Texas, but can earn referral commision Foreign Broker - -A broker from another state, may collect commission from a Texas broker as long as that Broker does not negotiate in Texas. Commission can be a gift or cash TALCB - -regulates real estate appraisers and administers the Texas Appraiser Licensing and Certification Act Members of TALCB - -9 Members 4 -Licensed Real Estate Appraisers 4-General Public (appointed by the governor) And the exec. secretary of the Texas Veterans Land Board