Texas Real Estate ExamTexas Real Estate Exam (State Portion)-Graded A, Exams of Advanced Education

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Texas Real Estate Exam (State Portion)-

Graded A

A) Notify the salesperson in writing of the termination and immediately return the salesperson's license to the Texas Real Estate Commission. - correct Answers-When terminating the sponsorship of a salesperson, the broker must A) notify the salesperson in writing of the termination and immediately return the salesperson's license to the Texas Real Estate Commission. B) return the salesperson's license, along with a letter of termination, to the Real Estate Commission. C) do nothing as the salesperson is responsible for notifying the Real Estate Commission of the change. D) give the salesperson an official letter of termination that the salesperson can send to the Real Estate Commission. D) It is illegal for a broker to rebate a portion of the commission to a principal to a transaction. - correct Answers-In regards to rebates, all of the following are true EXCEPT A) accepting an undisclosed rebate or profit on an expenditure for a principal demonstrates lack of ability to perform with honesty, trustworthiness, and integrity. B) title insurance companies are prohibited from paying rebates to real estate licensees. C) if a real estate licensee accepts a rebate or direct profit on an expenditure made for a principal, it must be disclosed to the party they represent. D) it is illegal for a broker to rebate a portion of the commission to a principal to a transaction. A) 90 days. - correct Answers-How long may a temporary lease be used? A) 90 days B) 60 days C) 30 days D) 120 days A) Provide the buyer the broker's personal opinion of the condition of the seller's title to the property. - correct Answers-In any real estate sales transaction that a broker negotiates, the broker would be well advised to do all of the following EXCEPT A) provide the buyer the broker's personal opinion of the condition of the seller's title to the property. B) make sure that the closing statement is accurate and that a copy of it is delivered to both the buyer and the seller. C) make sure that the written purchase and sales agreement includes all of the terms of the parties' agreement.

D) keep copies of all documents involved in the transaction in the broker's files for five years after the year in which the transaction was closed. D) Prior to the buyer's making a written offer. - correct Answers-In a situation where the Seller's Disclosure of Property Condition is required, in order to have a contract that cannot be terminated by a buyer for failure to receive the disclosure on or before the effective date of an executory contract binding the purchaser to purchase the property, the seller's agent should ensure the disclosure be delivered to the buyer or the buyer's agent A) prior to closing. B) at the time of the home inspection. C) at the time that the seller agrees to the offer. D) prior to the buyer's making a written offer. A) Publishing an advertisement that may create a misleading impression. - correct Answers-A real estate license may be suspended or revoked for A) publishing an advertisement that may create a misleading impression. B) specifying a definite termination date in a listing contract. C) including "owner/agent" in an advertisement to sell the license holder's own home. D) failing to properly account for the license holder's business expenses. A) Broker or salesperson. - correct Answers-Who must notify a buyer in writing of the importance of getting an abstract examined by an attorney of the buyer's choice or obtaining an owner's title policy prior to closing? A) Broker or salesperson B) Title company C) Seller D) Buyer's attorney D) More than $4,000. The answer is more than $4,000. A violation of the License Act by an unlicensed person is a Class A misdemeanor, which is punishable by up to a $4,000 fine or imprisonment for a term not to exceed one year or both. - correct Answers-A person acting as a real estate broker, real estate salesperson, or a right-of-way agent without a license or registration is guilty of a Class A misdemeanor that is punishable by a fine of NOT A) more than $2,000. B) neither less than $1,000 nor more than $2,000. C) neither less than $3,000 nor more than $4,000. D) more than $4,000. C) Status as a broker on each page of the site. - correct Answers-A broker has developed a website advertising the broker's office. What, if anything, does the broker need to include? A) No need for any additional disclosures B) Names, addresses, and phone numbers of active license holders

B) Integrity. - correct Answers-Which Canon of Professional Ethics requires that the broker or salesperson employ prudence and caution in the discharge of her duties to avoid misrepresentation? A) Fidelity B) Integrity C) Accounting D) Competency A) Salesperson provides the buyer with an Information About Brokerage Services form at the first substantive dialogue and discloses the company's agency status with the seller. - correct Answers-A buyer prospect is interested in viewing a house listed with the real estate company, but does not wish to enter into a buyer representation agreement. A salesperson from the real estate company can show the buyer an in- house listing if the A) salesperson provides the buyer with an Information About Brokerage Services form at the first substantive dialogue and discloses the company's agency status with the seller. B) buyer orally agrees to buyer agency. C) salesperson obtains the seller's permission. D) salesperson provides the buyer with a dual agency consent form properly executed by both the licensee and the buyer. B) 200 maximum. - correct Answers-How many acres are protected as a rural Texas homestead of a family? A) 100 maximum B) 200 maximum C) An unlimited number D) 50 maximum B) All of these are required. - correct Answers-For a business entity to be licensed as a broker the following is required: A) a managing officer of the entity must be designated as the agent for purposes of TRELA. B) all of these are required. C) the designated agent must have a broker's license in active and good standing with TREC. D) the entity must provide proof of E&O insurance of $1 million for each occurrence if the designated agent owns less than 10% of the entity. C) Redeem the property within a two-year time limit. - correct Answers-After real estate has been sold by the city or county to satisfy a delinquent tax lien, the defaulted owner of a homestead usually has a right to A) have the sale canceled by paying the back taxes and penalties. B) redeem the property within a three-year time limit. C) redeem the property within a two-year time limit. D) file a judgment lien against the purchaser at the tax foreclosure sale.

B) Homestead laws. - correct Answers-A Texas homeowner may be allowed certain protection from judgments of creditors as a result of the state A) lien laws. B) homestead laws. C) police power rights D) equal credit laws. B) Broker. - correct Answers-Who is responsible for filling in the effective date on the promulgated purchase contracts? A) Buyer B) Broker C) Last party to sign D) Seller C) Assess each license holder a pro rata share to bring the account to $1,700,000. - correct Answers-If the amount of money in the Real Estate Recovery Trust Account drops below $1 million, the Texas Real Estate Commission may A) limit payments from the fund to $5,000 per claim. B) transfer license holder fees and Texas A&M Research Center fees to the fund. C) assess each license holder a pro rata share to bring the account to $1,700,000. D) suspend payments from the fund until new license holders bring up the balance to an acceptable level. B) Prior to the sale, under the equitable right of redemption. The answer is prior to the sale, under the equitable right of redemption. The homeowner has the right of equity of redemption before the sale but no right of statutory redemption after the foreclosure sale takes place. - correct Answers-In Texas, if an owner defaults on her mortgage loan and the property is sold at a foreclosure sale, the owner may redeem the property A) after the sale, under the statutory right of reinstatement. B) prior to the sale, under the equitable right of redemption. C) prior to the sale, under the statutory right of redemption. D) after the sale, under the statutory right of redemption. D) Sale by a real estate license holder of a previously occupied single-family residential property. - correct Answers-All of these transactions are exempt from the duty to provide a written disclosure of property condition under the Texas Property Code EXCEPT A) conveyance of a primary residence from one former spouse to another under a divorce settlement agreement. B) foreclosure sale. C) sale by a father to his son. D) sale by a real estate license holder of a previously occupied single-family residential property.

D) Random selection of license holders. - correct Answers-The Texas Real Estate Commission may undertake an investigation of a license holder based on all these grounds EXCEPT A) written complaint submitted by a consumer or another licensee. B) its own initiative. C) motion from the members of the Commission. D) random selection of license holders. C) Depositing trust funds into the broker's escrow account. - correct Answers-In Texas, a broker's license may be suspended or revoked for all of these actions EXCEPT A) helping another person cheat on the licensing examination. B) employing an unlicensed person to perform acts of a broker. C) depositing trust funds into the broker's escrow account. D) displaying a For Sale sign on a property without the owner's written consent. B) "Beach Front Properties. Ask for Amil". - correct Answers-Which of the following advertisements, placed by a licensee, might be misleading? A) "Metro Properties. Ask for Listing Agent Armando" B) "Beach Front Properties. Ask for Amil" C) "Fair Winds Realty. Ask for Sales Associate Anna" D) "River View Properties. Call Ted Smith, Broker" B) Order the licensee to refund the security deposit. - correct Answers-After an investigation, the Commission determines that a licensee acting as a property manager improperly withheld a tenant's security deposit. In addition to awarding an administrative penalty, the Commission may also A) do nothing because the Commission may not involve itself in monetary disputes between licensees and consumers. B) order the licensee to refund the security deposit. C) order the landlord to return the security deposit. D) award damages up to three times the amount of the security deposit. D) TREC must be notified within 10 days of the move to the new location. - correct Answers-When a licensed broker changes his place of business, A) the new address must be approved by the Commission. B) a license will be issued by the Commission with the new address when the broker's license comes due for renewal. C) a new license will be issued for a full two year term. D) TREC must be notified within 10 days of the move to the new location. A) A sale of commercial property. - correct Answers-A seller would most likely be required to give a buyer the written Seller's Disclosure of Property Condition form required by the Texas Property Code in all of these transactions EXCEPT A) a sale of commercial property. B) when the seller is not assisted by a licensed real estate agent.

C) if the seller has not resided on the property in the last year. D) if the buyer has lived on the property as a tenant. B) The broker and the seller for nondisclosure. - correct Answers-Six months after a buyer bought a house, the roof leaked during a rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they agreed not to tell any prospective buyers. The broker claims that the buyer did not ask about the roof and also declined to have the property inspected. Under these facts, the buyer probably has a cause of action against A) the broker, but not the seller, for nondisclosure. B) the broker and the seller for nondisclosure. C) neither the broker nor the seller because the leaking roof could have been discovered by inspection. D) the seller, but not the broker, who must obey the client. D) Must be returned to the Real Estate Commission, and the salespersons are prohibited from further activity as licensees until they have obtained new sponsoring brokers. - correct Answers-When a sponsoring broker's license is suspended for two years, the licenses of the salespersons sponsored by the broker A) will also be suspended for a two-year period. B) will remain active as the suspension has no effect on the licenses of the salespersons. C) will be revoked, subject to reinstatement after one year. D) must be returned to the Real Estate Commission, and the salespersons are prohibited from further activity as licensees until they have obtained new sponsoring brokers. B) An attorney prepares the forms and the property owner requires their use. - correct Answers-A licensee must use the earnest money contract forms, addenda, and leases promulgated by the Commission unless A) the agent secures special permission from TREC. B) an attorney prepares the forms and the property owner requires their use. C) the agent is offering legal advice to the parties. D) the forms do not fit the circumstances of the transaction. C) Person who negotiates the sales of business opportunities, including stock equipment and buildings, for a promised fee. - correct Answers-Who must have a real estate broker's license in order to transact business? A) Onsite manager of a large apartment building who shows apartments to prospective tenants as part of her regular duties B) Owner of a six-plex who personally manages the building, collects rents, and shows the apartments to prospective tenants C) Person who negotiates the sales of business opportunities, including stock equipment and buildings, for a promised fee D) Child who has her parents' specific power of attorney to negotiate the sale of the parents' residence

B) Competency C) Accounting D) Fidelity D) Name of the sponsoring broker/company. - correct Answers-A salesperson has developed a website to attract buyers and sellers. What, if anything, must the salesperson include? A) Name and location of the office that holds the salesperson's license and a list of states in which the salesperson is licensed B) Names of the salesperson on each page C) Name of the home office of the company that holds the salesperson's license and a list of states in which the company is licensed D) Name of the sponsoring broker/company C) Seller disclosure of known property conditions is required by state statute. - correct Answers-In Texas, when a broker is listing a home and asks the seller to complete the Seller's Disclosure of Property Condition, which statement is TRUE? A) The disclosures are optional, so the seller and the broker may avoid liability by simply telling the buyer that since the property is being sold as-is, the seller is not required to disclose property defects. B) The standard disclosures cover a narrow range of structural conditions only. C) Seller disclosure of known property conditions is required by state statute. D) An agent should give the seller advice regarding which property conditions to disclose and which to ignore. A) Placing a For Sale sign in front of a house after receiving written permission to post the sign. - correct Answers-All of the following are violations of the Texas Real Estate Licensing Act EXCEPT A) placing a For Sale sign in front of a house after receiving written permission to post the sign. B) encouraging a seller to reject an offer because the of the prospective buyer's religion. C) failing to disclose to a potential purchaser any latent structural defects known to the license holder. D) receiving a commission without the knowledge and consent of the license holder's client. B) Enact the laws that govern real estate license holders. - correct Answers-The Texas Real Estate Commission has all of the following powers EXCEPT A) administer the exams given at the testing sites. B) enact the laws that govern real estate license holders. C) compose the examination questions on the state exam. D) make and enforce the rules by which all real estate license holders must abide. A) Recovery is limited to economic damages if the act is committed knowingly.

Recovery under the Deceptive Trade Practices Act (DTPA) is limited to economic damages-costs of repair and replacement. However, if the defendant is found to have committed the act knowingly, then damages for mental anguish may also be awarded (and in some cases, up to three times the amount of economic damages). If the defendant is found to have committed the act intentionally, then the economic and mental anguish damages may be trebled. - correct Answers-All of the following are true of the Texas Deceptive Trade Practices Act EXCEPT A) recovery is limited to economic damages if the act is committed knowingly. B) recovery of court costs and attorney fees is possible if the lawsuit was frivolous or harassing. C) a reasonable offer of settlement made within specified time limits is a defense. D) transmittal of written information prepared by others along with a written statement of reliance on such information is a defense. D) 24 months. The statutory redemption period is 24 months for a homestead or agricultural property and only 6 months for non-homestead property. - correct Answers-A Texas homestead property is being foreclosed for nonpayment of ad valorem taxes. How long does the homeowner losing the property have to redeem it after the foreclosure sale? A) 60 months B) 3 months C) 6 months D) 24 months A) The name of her sponsoring broker. - correct Answers-Salesperson Joanna Hastings paid the local telephone company to list her name in the directory under the real estate heading as "Joanna Hastings, Real Estate Salesperson, Residential Property Is My Specialty." Based on this information, Joanna must also include A) the name of her sponsoring broker. B) the expiration date of her license. C) her license number. D) her street address. B) Attorneys at law licensed in Texas. - correct Answers-If engaged in real estate brokerage activities, which persons are exempt from the real estate licensing requirement? A) Third-party property managers B) Attorneys at law licensed in Texas C) Apartment locators D) One who has listed a builder's inventory of new homes B) Four. - correct Answers-If a real estate broker maintains a trust account, how many years must that broker retain records of all deposits and withdrawals from the account? A) Two B) Four

B) An onsite apartment manager who collects rent on behalf of the owner of the apartment complex C) An executor selling a decedent's building D) A person employed by a builder to sell the new homes A) Assemble legal documents required for a closing. Only a licensed person may explain simple contract documents to prospective buyers as this would be considered an act of brokerage. An unlicensed person may perform bookkeeping such as computing commission checks, performing secretarial work such as assembling legal documents for closing, and writing advertising under the direction of a license holder. These activities are not considered to be acts of brokerage. - correct Answers-In Texas, an unlicensed real estate assistant may perform all of these activities EXCEPT A) assemble legal documents required for a closing. B) compute commission checks. C) explain simple contract documents to prospective buyers. D) prepare and distribute flyers and promotional materials. A) landlords must pay tenants interest on their security deposits. In Texas, a landlord is not required to pay tenants interest on their security deposit. The security deposit primarily safeguards against a tenant's destruction of the premises and is frequently equivalent to one month's rent. Under Texas law, within 30 days of the residential tenant's surrender of the premises, either a security deposit must be refunded to the tenant or the tenant must be provided with an explanation and accounting of damages and other charges being deducted from the deposit and for which the tenant is liable; if it is a commercial lease, the deadline is within 60 days after the tenant's surrender. - correct Answers-All of the following are true regarding security deposits EXCEPT A) landlords must pay tenants interest on their security deposits. B) the landlord is not obligated to return the security deposit until and unless the tenant has furnished the landlord with a written statement of the tenant's forwarding address. C) within 30 days of the tenant's surrender of the premises, either a security deposit must be refunded to the tenant or the tenant must be provided with an explanation and accounting of damages and other charges being deducted from the deposit and for which the tenant is liable. D) a landlord may retain a security deposit for failure to give a move-out notice only if the notice requirement is underlined or printed in conspicuous bold print in the lease. A) hearing conducted by the State Office of Administrative Hearings. If the commission proposes to deny, suspend, or revoke a person's license or certificate of registration, the person is entitled to a hearing conducted by the State Office of Administrative Hearings. - correct Answers-Before a license is revoked or suspended, the licensee is entitled to a

A) hearing conducted by the State Office of Administrative Hearings. B) hearing before the local association of REALTORS®. C) trial by jury before the Real Estate Commission. D) trial by jury in a state district court. C) Obtain the written consent of the owner of the property. - correct Answers-To place a For Sale sign on a listed property, a broker must first A) sell the property. B) get permission from the neighbors. C) obtain the written consent of the owner of the property. D) list the property. D) Texas Real Estate Commission. - correct Answers-In Texas, the Texas Real Estate License Act is administered by the A) Department of Housing and Urban Development (HUD). B) Texas Workforce Commission. C) Texas Association of REALTORS®. D) Texas Real Estate Commission. A) Deposits a buyer's earnest money into the salesperson's own bank account. - correct Answers-The Commission has the power to revoke a salesperson's license if the licensee A) deposits a buyer's earnest money into the salesperson's own bank account. B) enters into an oral agreement to represent a seller. C) places the salesperson's sponsoring broker in a subagency relationship with the seller. D) enters into an oral agreement to represent a buyer. B) The notice must be delivered to the purchaser before the effective date of the contract. - correct Answers-A seller of residential real property that is subject to membership in a property owners' association is required to give a prospective purchaser a written notice. All of the following are true regarding the written notice EXCEPT A) the notice must state failure to pay association assessments could result in a lien on and the foreclosure of the property. B) the notice must be delivered to the purchaser before the effective date of the contract. C) the promulgated Addendum For Property Subject To Mandatory Membership In A Property Owners Association. D) the notice must state that the purchaser would be obligated to be a member of the association. C) Community property. - correct Answers-Income earned by separate property is presumed to be A) one half separate and one half community. B) exempt from taxation.

A) Neither spouse may sell any real estate owned as part of their community property, unless both spouses sign the sales contract and deed. - correct Answers-Regarding community property, which of the following is TRUE? A) Neither spouse may sell any real estate owned as part of their community property, unless both spouses sign the sales contract and deed. B) Upon the death of either spouse, and if the deceased left a will, all of the community property automatically belongs to the surviving spouse, and the deceased's separate property is distributed according to the deceased's will. C) Technically, one spouse owns two-thirds of a couple's community property, whereas the other spouse owns only one-third. D) Any real estate that is part of a married couple's community property is held by spouses in a tenancy by the entirety. C) Recovery is limited to economic damages if the act is committed knowingly. - correct Answers-All of the following are true of the Texas Deceptive Trade Practices Act EXCEPT A) recovery of court costs and attorney fees is possible if the lawsuit was frivolous or harassing. B) a reasonable offer of settlement made within specified time limits is a defense. C) recovery is limited to economic damages if the act is committed knowingly. D) transmittal of written information prepared by others along with a written statement of reliance on such information is a defense. C) An attorney licensed in Texas acting as a real estate broker in a real estate transaction, but does not have a broker's license. - correct Answers-All of the following activities, when performed for another person and for a fee require a person to be licensed as a broker EXCEPT A) an attorney licensed in another state, but not licensed in Texas, acting as a broker in a real estate transaction in Texas. B) a person procuring or assisting in procuring a prospect to affect the sale, exchange, or lease of real estate. C) an attorney licensed in Texas acting as a real estate broker in a real estate transaction, but does not have a broker's license. D) a person controlling the acceptance or deposit of rent from a resident of a single- family residential property unit. C) Fill in blanks on preprinted contract forms promulgated by the Texas Real Estate Commission. - correct Answers-In Texas, brokers and salespersons who are NOT lawyers may A) explain the legal significance of specific preprinted contract clauses to a buyer or a seller. B) complete a bill of sale after a sales contract has been signed. C) fill in blanks on preprinted contract forms promulgated by the Texas Real Estate Commission.

D) suggest additional language to be added to a preprinted sales contract by a buyer or seller. A) Change the locks within seven days after a new tenant takes occupancy. The answer is change the locks within seven days after a new tenant takes occupancy. The premises must be rekeyed no later than seven days after a new occupant takes possession of a leasehold premise. Smoke detectors must be operational at the time the tenant is granted possession; battery maintenance then becomes the responsibility of the tenant. Keyless deadbolts are required but not double cylinder locks. - correct Answers-Which of the following actions is required of a landlord of residential property? A) Change the locks within seven days after a new tenant takes occupancy B) Provide double-cylinder deadbolts on each exterior door C) Provide functioning smoke detectors by periodically replacing batteries D) Change the locks prior to granting possession to a new tenant C) Actual damages, court costs, attorney fees, and up to treble damages if the court finds conduct committed knowingly or intentionally - correct Answers-A consumer prevails in a suit for a cause of action involving the Texas Deceptive Trade Practices Act. The maximum the consumer may be awarded by a court is A) actual damages plus $5,000 punitive damages and court costs. B) actual damages plus court costs and attorney fees. C) actual damages, court costs, attorney fees, and up to treble damages if the court finds conduct committed knowingly or intentionally. D) three times actual damages. A) A minimum of 15 classroom hours as a prerequisite to license renewal every 2 years after SAE requirements have been met. - correct Answers-The License Act provides for A) a minimum of 15 classroom hours as a prerequisite to license renewal every 2 years after SAE requirements have been met. B) a broker to act as an intermediary solely with the written consent of the buyer. C) a 10-year limit within which core and related courses taken at a college or approved proprietary school can be counted toward license requirements. D) liability if a licensee fails to disclose that an owner has AIDS. D) A sale of commercial property. - correct Answers-A seller would most likely be required to give a buyer the written Seller's Disclosure of Property Condition form required by the Texas Property Code in all of these transactions EXCEPT A) if the seller has not resided on the property in the last year. B) if the buyer has lived on the property as a tenant. C) when the seller is not assisted by a licensed real estate agent. D) a sale of commercial property. A) At the time of the first substantive dialogue with the party concerning a specific real property. - correct Answers-When should a real estate license holder provide the

D) Date. - correct Answers-What is the last thing written on the TREC-promulgated contract form to execute the contract? A) Buyer's signature B) Seller's signature C) Listing broker's signature D) Date B) have completed 15 hours of continuing education in the last 2 years, including 3 hours in legal and 3 hours in ethics. - correct Answers-Unless otherwise exempt, to renew a license in Texas a broker must A) be actively participating in the real estate business. B) have completed 15 hours of continuing education in the last 2 years, including 3 hours in legal and 3 hours in ethics. C) have completed hours of acceptable continuing education in the last 2 years. D) pay a fee and send back the expiring license. C) by the broker. - correct Answers-The Texas Real Estate Commission prohibits a license holder from using a sales contract drafted by A) an attorney. B) the buyer. C) by the broker. D) the seller. C) definite termination date not subject to prior notice. - correct Answers-An exclusive right-to-sell listing agreement requires a A) commitment for the owner's title insurance coverage. B) salesperson's full name. C) definite termination date not subject to prior notice. D) seller's property disclosure form. C) not pay the assistant a cash commission, but is permitted to make a gift of tangible personal property. - correct Answers-A broker's unlicensed assistant worked late nights and weekends to help ensure the successful closing of a difficult transaction. The assistant's extra work included making several phone calls to the prospective buyers, encouraging them to accept the seller's counteroffer. Largely because of the assistant's efforts, the sale went through with no problem. Now the broker wants to pay the assistant a percentage of the commission "because the assistant has really earned it." Under Texas law, the broker may A) compensate the assistant in the form of a commission under the circumstances described here. B) pay a commission to the assistant only if the assistant is an independent contractor. C) not pay the assistant a cash commission, but is permitted to make a gift of tangible personal property. D) not pay a commission to the assistant under the facts presented here. They are both in violation of rules regarding unlicensed assistants.

A) It must contain a prescribed statement that clearly establishes that it is not and should not be regarded as an appraisal. The answer is it must contain a prescribed statement that clearly establishes that it is not and should not be regarded as an appraisal. A broker's price opinion (BPO) or a competitive market analysis (CMA) can be offered by a broker (or salesperson in the name of the broker) who may charge a separate fee for preparing either. If charging a separate fee for the BPO or the CMA, and neither follows the Uniform Standards of Professional Appraisal Practice, TREC Rules provides (a) specific language be included to inform anyone reading the opinion that guidelines for development of an appraisal have not been followed. The TREC Rules use this language: "THIS IS AN OPINION OF VALUE OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my wo - correct Answers-Regarding a competitive market analysis or a broker's price opinion, which of the following statements is TRUE? A) It must contain a prescribed statement that clearly establishes that it is not and should not be regarded as an appraisal. B) It is illegal for a Texas broker or salesperson to charge a fee for preparing a broker's price opinion. C) The only difference between a broker's price opinion and an appraisal is the length of the report. D) It may be regarded as an informal appraisa A) inform the owner in writing that the salesperson is a license holder and that the salesperson is an agent of the listing broker before entering into a purchase contract. - correct Answers-A broker took a listing for a small office building. Because the property is in excellent condition and produces a good, steady income, the broker's salesperson has decided to purchase it as an investment. If the broker's salesperson wishes to buy this property, the salesperson must A) inform the owner in writing that the salesperson is a license holder and that the salesperson is an agent of the listing broker before entering into a purchase contract. B) have some third party purchase the property on the salesperson's behalf so that the owner does not learn the true identity of the purchaser. C) obtain permission from the Texas Real Estate Commission. D) resign as the broker's agent and make an offer after the owner has retained another broker. C) inform them orally or in writing that the salesperson and salesperson's broker represent the seller's interests. - correct Answers-A salesperson obtains a listing contract on behalf of the salesperson's sponsoring broker. When a prospective buyer asks to look at the property, the salesperson must provide the prospect with the TREC Information About Brokerage Services form, or another statutorily acceptable version, and A) inform them in writing that the salesperson represents the seller's interests.