TX-Brokerage (SAE), Texas Real Estate Brokerage 30 Hours 2023, Exams of Agricultural economics

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TX-Brokerage (SAE), Texas Real Estate

Brokerage 30 Hours 2023, texas sae real

estate brokerage, Real Estate:

Brokerage Final Exam

Questions/Answers, Real Estate:

Practice Exam (Questions/Answers),

Real Estate: Agency Exam Questions &

Answers 2023

The _____ is required to ascertain that Brokers are aware of all of their responsibilities.

• Correct Answer-Texas Real Estate Commission The _____ course is to address the regulatory aspects of the management, operation and supervision of a real estate brokerage firm in Texas. The course provides an understanding and working knowledge of a broker's responsibilities and obligations under 22 TAC §535.2. - Correct Answer-Broker Responsibility MCE Who Must Take The Broker Responsibility MCE Course? - Correct Answer-A broker who sponsors salespersons, a designated broker of a business entity, and a license holder who is a delegated supervisor of one or more license holders (for six months or more during the supervisor's current license period), to complete this six—hour broker responsibility course to renew a license. "Act of God" - Correct Answer-A natural disaster or fire Broker must, at a minimum, maintain the following records in a format that is readily available to the Commission for at least ____ years from the date of closing, termination of the contract, or end of a real estate transaction - Correct Answer- Recruitment of a salesperson by a broker is not regulated with the exception that instructors or other persons associated with a ___ may NOT recruit or solicit prospective salespersons or brokers in a classroom during class time - Correct Answer- School There is no provision in the Act or the TREC Rules prohibiting a broker from _____ a salesperson or broker—associate affiliated with another broker. - Correct Answer- Recruiting

________ are exempt from any of the provisions of the Texas Real Estate License Act. They are permitted to represent clients in real estate transactions by virtue of their license to practice law. - Correct Answer-Attorneys Brokers CANNOT share their fees with attorneys who perform a brokerage service, attorneys must seek compensation for that service directly from one of the ______ in a transaction - Correct Answer-Principals Can a listing broker share a portion of the listing broker's commission with an attorney who represented the buyer in a real estate transaction? - Correct Answer-No. A broker is prohibited from sharing fees with or otherwise compensating the attorney acting as a buyer's agent unless the attorney holds an active real estate license. Is a link to the IABS form required on my website? - Correct Answer-Yes. Rule 531.20(b) states that each broker and sales agent must provide a link on its homepage to the IABS Form labeled "Texas Real Estate Commission Information About Brokerage Services". IABS link must be in at least a ______ point font and in a readily noticeable place on the homepage of the business website of the broker and sales agent. - Correct Answer- Does a link to the IABS Form in my email signature satisfy the representation disclosure required by TRELA §1101.558? - Correct Answer-No. Rule 531.20(d) states that providing a link to the IABS Form in a footnote or signature block of an email is insufficient The IABS Form can be provided by: - Correct Answer-(1) personal delivery; (2) first class mail or overnight common carrier delivery service; (3) in the body of an email; or (4) as an attachment to an email or as a link in the body of an email so long as there is a specific reference to the IABS Form in the body of the email. Reasons people give for wanting to open their own Brokerage: - Correct Answer- Wanting to create something from scratch, Wanting to be their own boss, Wanting to train and motivate real estate agents to be successful, Wanting to be leader in their community or in the industry, An entrepreneurial spirit Two good resources for finding past statistic for the real estate industry are - Correct Answer-The National Association of REALTORS® and the Real Estate Center at Texas A&M University. The _______ indicates the strength of the economy. - Correct Answer-Gross domestic product or GDP Most good economies have a GDP of about _____ - Correct Answer-3%

A new broker will need a good real estate attorney and a good _____ on their team. - Correct Answer-Certified public accountant (CPA) The Rules of the Texas Real Estate Commission require that a Broker have a_______ before you start hiring agents - Correct Answer-Policy and Procedures Manual Policy and Procedures Manual must include - Correct Answer-Agent's Authorized Activity, Advertising, Compensation, Records Management, Trust Accounts The new broker will want to consider three possibilities. - Correct Answer-Purchasing an existing real estate business, purchasing a franchise office or a start up from scratch All business entities engaged in real estate brokerage activity, including ______, need to be licensed. - Correct Answer-Partnerships If the designated broker does NOT directly own at least 10% of the entity TREC requires proof that the business entity maintains _______ in the amount of $1 million per occurrence. - Correct Answer-Errors and omissions insurance Two requirements that must be met for all advertisements - Correct Answer-Must "clearly and conspicuously contain the name of the broker, either a business entity or an individual." and An advertisement must include a designation that serves to clearly identify the advertiser as a real estate agent. TREC Qualifications to obtain a Broker's license: - Correct Answer-Citizen of the United States or lawfully admitted alien, 18 years of age or older, Resident of Texas, unless you: were licensed in Texas as a sales agent or broker in the last two years; or you are licensed as a broker in another state, Meet TREC's qualifications for honesty, trustworthiness, and integrity Instructors must pass the test with a grade of ____ or higher to be able to teach the course - Correct Answer-80% To become a Broker you need to complete your qualifying education- ______ classroom hours of qualifying real estate courses - Correct Answer- Principles of Real Estate I (30 classroom hours), Principles of Real Estate II ( classroom hours), Law of Agency (30 classroom hours), Law of Contracts ( classroom hours), Promulgated Contracts Forms (30 classroom hours), Real Estate Finance (30 classroom hours), Real Estate Brokerage (30 classroom hours) - Correct Answer-Brokerage mandatory courses The Real Estate Brokerage course must be completed not more than ____ years before the application date. - Correct Answer-

The Broker will become both the Leader and the _____ - Correct Answer-Manager Broker/Owners become responsible for the______ of the entire company - Correct Answer-Management, operation and supervision A broker must maintain all records for _____ years. - Correct Answer- Purchasing or starting a new brokerage business is exciting and _____ - Correct Answer-Risky Builders do NOT have to be _____, in Texas - Correct Answer-Licensed CRS— - Correct Answer-Certified Real Estate Specialist ABR— - Correct Answer-Accredited Buyer's Representation ALC— - Correct Answer-Accredited Land Consultant SRS— - Correct Answer-Seller's Representation Specialist CRB— - Correct Answer-Certified Real Estate Broker CPM— - Correct Answer-Certified Property Manager GRI— - Correct Answer-Graduate of the REALTOR® Institute CRE— - Correct Answer-Certified Real Estate Counselor SRES— - Correct Answer-Senior Real Estate Specialist REALTOR® members agree to submit commission disputes between Brokers to arbitration through their _____ - Correct Answer-Association of REALTORS®. A broker may only _____ another license holder to withdraw or transfer money from any trust account, but the broker remains responsible and accountable for all trust money received by that broker and all deposits to or disbursements from the trust account. - Correct Answer-Authorize Any money received by a real estate sales person must be immediately delivered to the salesperson's _____ - Correct Answer-Sponsoring broker The law prohibits _____ money a license holder holds for another with a license holder's own funds. - Correct Answer-Commingling

When a broker holds earnest money or any money from property management activities in a trust account, how often is a broker required to account for that money? - Correct Answer-Monthly As the broker, it will be your job to gather and ___ information - Correct Answer- Disseminate (spread) It is the obligation of a real estate agent to be knowledgeable as a real estate brokerage practitioner. The agent should be informed on - Correct Answer-(1) Market conditions affecting the real estate business and pledged to continuing education in the intricacies involved in marketing real estate for others; (2) National, state, and local issues and developments in the real estate industry (3) Exercise judgment and skill in the performance of the work. NEVER delete a message from _____ without reading it carefully. It may contain information that you and your sponsored sales people need to know. - Correct Answer- TREC Two things that an individual needs before she or he can start a brokerage firm: - Correct Answer-A real estate broker's license and funding The _____ is the newsletter from TREC and often contains information regarding changes in rules, contracts, etc. - Correct Answer-Advisor Real estate _____ offer buyers a packaged business operation and built—in name recognition, as well as national advertising paid for by the franchiser. - Correct Answer- Franchises The broker has a few choices on how to obtain funding; a broker can get a business loan or use her or his own ______ - Correct Answer-Personal funds When obtaining a Real Estate Broker's License, normally a real estate licensee must have ____ or more years of experience as an active salesperson, completed a required number of classroom hours (specified by each state), and successfully mastered the Real Estate Broker's License Examination. - Correct Answer- An individual with a bachelor's or master's degree from an accredited college or university, members of the state bar, and licensed attorneys are eligible to take the _______ without completion of classroom work and real estate sales experience - Correct Answer-Real Estate Broker's License Examination To become a Broker you have ______ from the date your application is filed to meet all license requirements. - Correct Answer-1 year Once you have met all the requirements to get your license, TREC will send an active broker license to you via - Correct Answer-Email

A ______ is a person who provides real estate services to another person in exchange for a commission - Correct Answer-Licensed Real Estate Broker Candidates for a broker license must also meet the following experience requirements: - Correct Answer-Have at least four years' active experience as a licensed real estate sales agent or broker during the 60—month period preceding the filing of the application, Your experience must total 3600 points and be reported on the Qualifying Experience Report for a Broker License. You must also include a transaction identification list for each transaction claimed on the experience report Business Structure: Doing business as an individual you will be able to do so under the name your Broker's license is in. You will be taxed as an individual and will need to pay income tax quarterly. - Correct Answer-Independent Brokers can operate under an assumed name as long as the assumed name is registered with _____ - Correct Answer-TREC Allows any number of "limited partners," whose liability is limited to the total amount of their investment in the company. - Correct Answer-Limited partnership (LP) ______ are sometimes referred to as "silent partners"—in other words, they can make investments in the company but have no voting power or control over its day—to—day operations. - Correct Answer-Limited partners The least complex business structure. It gives you the perk of pass—through taxes, limited liability and legal protection for your personal assets. - Correct Answer-Limited Liability Company (LLC) Both C and S Corps offer limited ______ - Correct Answer-Liability protection C Corporation and. S Corporation differ in the complex realm of ____ and corporate ownership - Correct Answer-Taxation C Corps are subject to _____ taxation - Correct Answer-Double S Corps are pass—through ____, allowing them to avoid being taxed at the corporate level and again on shareholders' personal income taxes. - Correct Answer-Tax entities C Corps have NO restriction on ____, they have unlimited growth potential - Correct Answer-Ownership S Corps are restricted to no more than ____ shareholders. - Correct Answer-

S Corps cannot be ____ by a C Corp, LLCs, partnerships, or many trusts. - Correct Answer-Owned Certain states allow companies to form a distinctive business structure called ____, it takes its name from the fact that it can have multiple members, managers, or business lines within it. - Correct Answer-Series Limited Liability Company (LLC) Allows a company to separate and protect multiple assets without the need to form additional entities. - Correct Answer-Series LLC A licensed business entity real estate broker is an organization that can act as a _____ and is qualified to conduct business in Texas. - Correct Answer-Real estate broker A licensed business entity real estate broker qualifications - Correct Answer-Be authorized to transact business in Texas and Designate an active Texas real estate broker to act on behalf of the organization A business entity cannot act as a broker in Texas unless the entity designates an _____ to act on its behalf. They must be a managing officer of the business entity and must be in good standing with the Commission. - Correct Answer-Active individual broker If the designated broker owns ____ or more of the entity, proof of the designated broker's ownership - Correct Answer-10% Search Engine Optimization (SEO) - Correct Answer-A systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business FBN - Correct Answer-Fictitious Business Name "Doing business as" name - Correct Answer-DBA Before a business selects its name, it should make sure that no one else is using the DBA by performing a search through its _____ - Correct Answer-County clerk's office or online system Corporations are NOT required to file a _____ because the corporation is a legal entity and is entitled to use its own name - Correct Answer-Certificate of business name The DBA should be registered with the _____ and be approved before it can be used. - Correct Answer-County clerk's office There is NO requirement that a _____ included in an advertisement belong to the broker - Correct Answer-Phone number or email address

The term REALTOR®, whether used on the Internet, as part of the domain name, or in any other advertisement, must refer to a member or member's company, may NOT be used with descriptive words or phrases, and SHOULD be _____ from the member's name or company's name. Ex: (johndoe—REALTOR®.com or abcrealty—realtors.com)

• Correct Answer-Separated The biggest issue about office space that most brokers do not feel comfortable about is the long— _______ - Correct Answer-Term lease commitment Real estate offices have to comply with the ___ requirements - Correct Answer-ADA In the 1970s the Texas Real Estate Commission adopted the first three Cannons of Ethics - Correct Answer-Fidelity, Integrity and Competency (codified in 1976) A rule or principle or standard of conduct adopted by a professional organization to guide the conduct of its members - Correct Answer-Cannons Licensees must be faithful and observant to the trust placed in them, as well as scrupulous and meticulous in performing task. - Correct Answer-Fidelity Licensees must use prudence and caution to avoid misrepresentation by acts of commission or omission. - Correct Answer-Integrity Licensees must use judgement and skill when exercising their duties. - Correct Answer- Competency Limitation or discrimination based on race, color, religion, sex, national origin, ancestry, familial status or handicap of an owner, previous or current occupant, potential purchaser, lessor or potential lessee of the property. - Correct Answer-Discriminatory Practices Includes anyone who has, had, or may have AIDS, an HIV-related illness or HIV infection - Correct Answer-Handicap Each active real estate broker shall provide this notice by (1) displaying it in a readily noticeable location in each place of business the broker maintains and (2) providing a link to it labeled "Texas Real Estate Commission Consumer Protection Notice", in at least a 10 point font - Correct Answer-The Consumer Protection Form (CN 1-2) A broker owes the highest ____ obligation to the principal and is obliged to convey to the principal all information known to the agent that may affect the principal's decision, unless prohibited by other law - Correct Answer-Fiduciary The ____ duties a broker owes to his or her client are obedience, loyalty, confidentiality, good faith, honesty, refraining from self-dealing, integrity, fair and honest dealing, and

disclosure of anything that may have an effect on the client's decision. - Correct Answer-General fiduciary A broker owes a customer ______ along with disclosure about the property. Brokers - Correct Answer-Honesty and fairness _______ means client's money, earnest money, rent, unearned fees, security deposits, or any money held on behalf of another person - Correct Answer-Trust money _____ means an account managed by one party for the benefit of another in a banking institution authorized to do business in Texas. - Correct Answer-Trust account Any trust money received by the broker must be deposited in a trust account or delivered to an authorized escrow agent within a reasonable time, which the Commission has determined to be not later than the close of business of the _______ WORKING day after the date the broker receives the trust money. (Ex: Tues--> end of Wed) - Correct Answer-2nd Usually the broker is holding money for the owner in the broker's _____ when managing the property. - Correct Answer-Trust account The principal governing bodies that directly affect the real estate industry are the: - Correct Answer-Texas State Legislature, the Texas Property Code and the Texas Real Estate Commission (TREC). Is responsible for all laws in Texas, which includes those laws that directly affect the real estate industry. (State Senate and the House of Representatives) - Correct Answer-Texas State Legislature The state legislature created ___ and it has two main functions: Enforce all real estate-related statues in the Texas Occupations Code, Chapter 1101 and 1102, also referred to as The Texas Real Estate License Act (TRELA) and To adopt and enforce new rules governing the practice of real estate, as needed to administer the law and protect the public - Correct Answer-The Texas Real Estate Commission (TREC) Provides that The Commission is granted the authority to enforce all the statutes contained in the Act as well as provide for the commission to adopt and enforce new rules. - Correct Answer-The Real Estate License Act (TRELA) Licensed real estate professionals and licensed real estate inspectors are responsible for ADHERING to the Texas Real Estate License Act (TRELA), and ABIDE by the rules of the ______ - Correct Answer-Texas Real Estate Commission (TREC)

A common state law, which, in Texas, requires the Sunset Commission to evaluate all state agencies every 12 years with respect to their efficiency and the need for their services. - Correct Answer-Sunset Act Fee Simple - Correct Answer-Ownership with the greatest bundle of rights - the owner has all available rights to the property and can always pass it to his heirs - also called fee simple absolute Promulgated Contract Forms - Correct Answer-Must be used by all licensees The Real Estate License Act (TRELA) is one section of a larger law passed by the State Legislature called the ________ - Correct Answer-Texas Occupations Code The Real Estate License Act (TRELA) is Chapters 1101 and 1102 of the ____. Chapter 1101 pertains to Real Estate Brokers and Salespersons and chapter 1102 pertains to Real Estate inspectors. - Correct Answer-Texas Occupations Code Empowers TREC to enforce the Real Estate License Act and to make and enforce new rules. Requires that those persons who perform any real estate acts as defined in Sec. 1101.002 (sell, exchange negotiate auction or deal in real estate) in expectation of compensation must obtain a state license. - Correct Answer-Texas Real Estate License Act (TRELA) The Texas Real Estate License Act (TRELA) was formerly called Vernon's Texas Civil Statutes, Article 6573a, and is now known as - Correct Answer-Chapter 1101 of the Texas Occupations Code There are two types of real estate licenses: - Correct Answer-A broker's license and a salesperson's license A broker sponsored by another broker - Correct Answer-Broker associates An _____ status means that the license holder does NOT have a sponsoring broker - Correct Answer-Inactive The _____ status means that the license holder did not renew his or her license - Correct Answer-Expired A person who holds an _____ license can practice real estate while the other two cannot - Correct Answer-Active The National Association of REALTORS® Code of Ethics is reviewed and updated _____ - Correct Answer-Annually TRELA is reviewed and updated every ____ years when the Texas Legislature meets - Correct Answer-

A license holder shall provide to a party to a real estate transaction at the time of the first substantive dialogue with the party the ______ - Correct Answer-Written statement The primary functions of the Real Estate Commission are to: - Correct Answer-Protect the public from unlawful or unscrupulous acts of licensed real estate brokers salespersons and certificate holders, Set minimum standards and qualifications for licensing brokers and salespeople, Protect licensed brokers and salespeople from unfair or unethical com The Texas Real Estate License Act (TRELA) requires anyone that assist others to sell, rent or lease property for anything of value to have a - Correct Answer-Real estate license After filling out the application and asked about criminal history. Sam did have a misdemeanor charge several years ago but did not put it on the application. He decided it was too long ago to mention. A misdemeanor charge was on a background report. What do you think TREC will do? - Correct Answer-It is very possible TREC will consider dishonesty on the application and a sign of untrustworthy. They will listen to the reasoning but he will probably not get a license The ____ was enacted in 1973. The purpose of the act is to protect consumers against false, misleading, and deceptive business practices, unconscionable actions and breaches of warranty - Correct Answer-Texas Deceptive Trade Practices Act (DTPA) Unless a licensee has committed an unconscionable act, misrepresentation of a material fact, or a failure to disclose with the intention of inducing a consumer into a transaction, the licensee can NO longer be held liable under _____ - Correct Answer- DTPA DTPA defines an "_____" as one that "takes advantage of the lack of knowledge, ability, experience, or capacity of a person to a grossly unfair degree." - Correct Answer- Unconscionable action ______ are still responsible under DTPA - Correct Answer-Sellers _____ allows an aggrieved consumer to hold a seller of goods and services liable for damages resulting from deceptive or unfair trade practices - Correct Answer-The Texas Deceptive Trade Practices-Consumer Protection Act (DTPA) In the context of real estate, consumer is the _____ - Correct Answer-Buyer In the context of real estate, seller of goods is the _____ of real property - Correct Answer-Seller

The DTPA lists _____ specific violations, commonly referred to as the "laundry list." - Correct Answer- The licensee must disclose _____ defects in a property (of which he or she is aware), including any additional information about the property that may affect the prospective buyer's final decision - Correct Answer-Any and all The State of Texas requires all sellers of residential property to submit a _____ - Correct Answer-Seller's disclosure form This form is required even when an owner sells his or her own property - Correct Answer-Seller's disclosure form If a client or customer asks for an agent's opinion, the agent should refer the individual to a ____ (for example, a property inspector, an attorney, or a plumber) who can provide unbiased and informed assistance to the consumer. - Correct Answer-Specialist Agent should avoid recommending a particular specialist; if the consumer is dissatisfied with the work of that individual, the licensee could be held liable. Instead, the agent can provide the consumer with _____ - Correct Answer-A list of qualified professionals Agent should always keep ____ notes throughout the real estate transaction - Correct Answer-Detailed and accurate Material misrepresentation or failure to disclose any known or latent property defects, Deceptive practices in the marketing, selling, or offering of real property, False promises made to the consumer through advertising or directly through the agent, Failure to disclose which party is compensating the agent, or that more than one party is liable for compensation without the written consent of all parties involved, Request or acceptance of an undisclosed compensation, Acting as agent and undisclosed principal in a transaction - Correct Answer-Violations of license law which are also violations of the DTPA The REALTOR® logo can only be used by those who are members of the _____ - Correct Answer-National Association of REALTOR® (NAR) If a broker joins _____ they have to agree that all of their associated agents will also become a member - Correct Answer-NAR The Code of Ethics consists of a Preamble and ___ Articles: - Correct Answer- The first 9 Articles are - Correct Answer-Duties to Clients and Customers Articles 10 through 14 are - Correct Answer-Duties to the Public Articles 15, 16, 17 are - Correct Answer-Duties to REALTORS®

_____ was a system of land ownership in which all the land in the kingdom was considered to be owned by the head of the state (the king or queen). - Correct Answer- Feudalism In recognition and appreciation of their obligations to clients, customers, the public, and each other, REALTORS® continuously strive to become and remain informed on issues affecting real estate, and as knowledgeable professionals, they willingly share the fruit of their experience and _____ - Correct Answer-Study with others _____ are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor - Correct Answer-REALTORS® Filled with or showing a strong and energetic desire to get something done or see something succeed - Correct Answer-Zealous The term _____ has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations - Correct Answer- REALTOR® "Whatsoever ye would that others should do to you, do ye even so to them." - Correct Answer-Golden Rule What are the REALTOR® marks? - Correct Answer-The REALTOR® marks include the terms REALTOR®, REALTORS®, and REALTOR-ASSOCIATE®, as well as the REALTOR® block "R" logo. These marks are all federally registered collective membership marks owned by the National Association of REALTORS® (NAR) _______ is defined as an intentional, false communication, either written or spoken, that harms a business/person's reputation. - Correct Answer-Trade defamation ______ can also include both written statements, known as libel, and spoken statements, called slander - Correct Answer-Trade defamation Libel - Correct Answer-Written statement Spoken statements - Correct Answer-Slander The federal _____ provides compensation, injunctive relief, attorney fees and punitive damages to companies that are harmed by theft or misuse of trade secrets. - Correct Answer-Uniform Trade Secrets Act (UTSA) Unfair business practice in relationship to real estate buyers or sellers is generally covered under the _____ - Correct Answer-Texas Deceptive Trade Practices Act (DTPA)

Individuals with disabilities are protected under the _____ - Correct Answer-Americans with Disabilities Act (ADA) ADA addresses discrimination in four general areas: - Correct Answer-Employment, Public Transportation:, Public Accommodations and Commercial Facilities and Telecommunications Businesses and establishments affected by the ADA: - Correct Answer-Businesses with 15 or more employees, Any facilities or offices affiliated with state or local government, Public and private schools, Hospitals and dental offices, Hotels and motels, Grocery and retail stores, Shopping malls, Libraries and museums, Banks, Theaters, Amusement and recreation parks _______ (also known as the Architectural and Transportation Barriers Compliance Board) a federal organization that issues guidelines to ensure that buildings, facilities and transit vehicles are accessible and usable by people with disabilities. - Correct Answer-The Access Board The Americans with Disabilities Act prohibits discrimination against the disabled, and _____ protects the disabled from unfair housing practices. - Correct Answer-Title VIII of the Civil Rights Act of 1968 Grants all citizens of the United States—without exception—a set of basic rights regardless of their race, color, or previous condition of servitude. Among the rights granted by this Act are the rights to "make and enforce contracts, to sue, be parties, and give evidence, to inherit, purchase, lease, sell, hold, and convey real and personal property." - Correct Answer-Civil Rights Act of 1866 The _______ included a prohibition against discrimination on the basis of race, color, and national origin in any program or service funded by the federal government. Religion, sex, handicap and familial status were later added to the act. - Correct Answer-Civil Rights Act of 1964 Shortly after the assassination of Dr. Martin Luther King Jr., Congress passed the Civil Rights Act of 1968. Title VIII of this Act, also known as the _______, prohibits discrimination in real estate practices - Correct Answer-Fair Housing Act The Department of Housing and Urban Development, commonly referred to as HUD, enforces the ______ - Correct Answer-Civil Rights Act of 1968 The Fair Housing Act does NOT cover ____ buildings - Correct Answer-Non- dwelling The fair housing laws do NOT apply to _____ transactions unless those transactions include property that would be properly defined as a dwelling - Correct Answer- Commercial

The federal Fair Housing Act is primarily intended to _____ in the sale, rental, and advertisement of dwellings - Correct Answer-Prohibit discrimination Commercial property transactions are NOT normally included under the Fair Housing Act, they are covered by other laws, such as the ____ - Correct Answer-Americans with Disabilities Act Four general circumstances under which a dwelling is exempt from the federal Fair Housing Act - Correct Answer-Single-Family Residences Sold by Owner, Rental of Rooms or Units in Owner-Occupied Property, Dwellings Belonging to Religious Organizations or Private Clubs and Housing for Older Persons Landlords have to allow tenants to make modification to their property to accommodate their handicap. The modifications must be paid for by the ____ and the landlord can require the property to be put back to its' original condition when the tenant moves out. - Correct Answer-Tenant Landlords cannot forbid assistance animals to help a ____ for being there even if they have a no pet policy. - Correct Answer-Handicapped tenant Under the federal Fair Housing Act, there are ____ protected classes - Correct Answer- 7 Protected classes under the federal Fair Housing Act - Correct Answer-1. Race

2. Color
3. National origin
4. Gender
5. Familial status
6. Religion
7. Disability Sex was added in 1974 to the protected classes by the _____ - Correct Answer- Housing and Community Development Act A 1988 amendment to the federal Fair Housing Act itself added ____ - Correct Answer- Familial status and handicap Infected with HIV or having AIDS, being an alcoholic, and having a learning disability. However, if a party has entered a drug or alcohol treatment program they are protected under the handicapped laws. - Correct Answer-Definition of Disability Although you may not discriminate against people because of a disability, it is NOT illegal to refuse housing to prospective tenants or to evict current tenants who have a physical or mental impairment that poses a ____ of harm to other tenants - Correct Answer-Direct threat

A tenant with Tourette's syndrome who cannot help making loud noises throughout the night may pose an indirect threat to other tenants through the long-term effects of sleep loss, but does NOT pose any immediate, ______ - Correct Answer-Direct threat The federal Fair Housing Act also protects families with children under the age of 18 living with one or more parent or guardian, as well as pregnant women and those planning to ____ - Correct Answer-Adopt There is one exception to this prohibition: what the Fair Housing Act calls "housing for older persons." - Correct Answer-That dwelling is provided under any state or federal program that the Secretary of Housing and Urban Development determines is designed and operated to provide assistance to the elderly, That dwelling is intended for and occupied solely by people who are 62 years of age or older and At least 80% of all occupied units in that dwelling house at least 1 person over the age of 55 and the landlord generally adheres to a policy with the demonstrable intent of housing persons over 55 This Act required HUD to set reasonable limitations on the number of occupants allowed in a dwelling - Correct Answer-Quality Housing and Work Responsibility Act HUD concluded that a "_____ occupants per bedroom" rule—taking other factors into consideration—constitutes a good basic model - Correct Answer- The practice of providing real estate advice or other real estate services in a manner that perpetuates segregated housing - Correct Answer-Steering The practice of encouraging the panic selling of homes below market value, generally by raising fears that an influx of individuals belonging to a particular minority group will decrease property values in a neighborhood and affect the area negatively. - Correct Answer-Blockbusting Blockbusting may also be referred to simply as _____ - Correct Answer-Panic selling There are NO EXCEPTIONS to the Civil Rights Act of 1866. This means that you may NEVER turn away a ______ because of race or color; neither may you publish an advertisement that discriminates against someone on this basis. - Correct Answer-Qualified tenant or purchaser HUD may also ask the _____ to handle the suit in court to obtain temporary or preliminary relief. - Correct Answer-Attorney General Taxpayers can deduct ____ from taxes - Correct Answer-Interest To lease you must have a _____ - Correct Answer-Real estate license

Texas Deceptive Trade Practices Act (DTPA) - Correct Answer-Protects consumers against false, misleading, and deceptive business practices Unconscionable action - Correct Answer-An ___ __ is an action that takes advantage of the lack of knowledge of someone with more than a reasonable or acceptable level or amount. An attempt to resolve the issues raised by a complaint or an investigation though informal negotiations between the aggrieved person, the respondent, and the HUD Secretary - Correct Answer-Conciliation If HUD determines that a discriminatory practice has occurred- violation of fair housing law: Pay the Federal Government a civil penalty. The maximum penalties are _____ for a first violation and another violation within seven years $50,000 - Correct Answer- $10, The _____ makes it illegal for a lender to discriminate against borrowers - Correct Answer-Equal Credit Opportunity Act (ECOA) Lenders protected classes: - Correct Answer-1.Race or color 2.Religion 3.National origin 4.Sex 5.Handicap 6.Familial Status 7.Marital status* 8.Age (as long as you are old enough to enter into a contract )* 9.Receipt of income from any public assistance program* 10.Exercising in good faith your rights under the Consumer Credit Protection Act* It is interesting to Note that you can be too young to get a _____ but you cannot be too old - Correct Answer-Mortgage loan A lender may ask only questions that are relevant to an individual's ____ standing. This means that while asking if someone is divorced is inappropriate, asking if someone must pay alimony is acceptable - Correct Answer-Financial Is LEGAL if a lender asks about the credit of a loan applicant's husband when the husband is a party to the loan application - Correct Answer-Correct. If an applicant's spouse is named as a party to the loan application, the lender may ask about him or her Is LEGAL if a lender asks a loan applicant how much child support she, the applicant, is receiving, although she has stated that she doesn't intend to use the money to qualify for the loan - Correct Answer-Incorrect. Under the ECOA, a lender may only ask about child support if the applicant intends to use that money to qualify for the loan

The _____ seeks to enable all parts of a community, no matter if a wealthy community or a poor community are able to have access to credit. - Correct Answer-Community Reinvestment Act (CRA) The _____, passed in 1977, requires lenders to assist their local communities by participating in community development projects. The Act also requires that lenders submit an annual statement including public comments about their attempts to help low- income communities. - Correct Answer-Community Reinvestment Act (CRA) What is the term if a financial organization refuses to make mortgage loans in certain areas because they consider it an unsafe area? They are guilty of ______ - Correct Answer-Redlining The ________ requires lenders to disclose specific lending information, which HUD then uses to map lending patterns - Correct Answer-Home Mortgage Disclosure Act The Office of ______ (a bureau of the U.S. Treasury) also passed a regulation banning redlining - Correct Answer-Thrift Supervision In 2015 a Texas law was passed that made it a crime for harboring or concealing immigrants that are in the U.S. without documentation. Recently the U.S. Court of Appeals for the ____ clarified that landlords are NOT breaking Texas law and "harboring" if they rent to these individuals - Correct Answer- 5th Circuit Is any individual acting as a representative for another individual in dealings with a third party - Correct Answer-Agent Is the individual that authorizes another person to act on his or her behalf. This person may also be referred to as the client. - Correct Answer-Principal Is the individual with whom the agent and principal enter into real estate negotiations; he or she is also sometimes referred to as the customer. - Correct Answer-The Third Party The third party negotiates with the principal through the agent - Correct Answer- Principal- Agent- Third Party The agent works for the principal and works with, but not for, the third party - Correct Answer-The Agency Relationship The amount of authority that an agent has differs depending upon the arrangement - Correct Answer-Authority The ____ agent has a great deal of authority in his or her principal's affairs. A legal guardian, for example, has all of the power of this agent - Correct Answer-Universal

A ____ agent has more limited authority than a universal agent but is usually authorized to manage all of the principal's affairs in certain specified areas, like the business manager who is allowed to enter into contracts and make business decisions for a company. Associated licensees usually also have a relationship of this agency with their supervising brokers - Correct Answer-General The _____ agent has the most limited authority of any type of agent. Usually, the agent only has authority in one specific transaction. Also, the agent may not enter into or sign contracts on behalf of his or her principal. In the real estate industry, the licensee generally has this agency relationship with the principal - Correct Answer-Special Express agreements and some implied agreements grant actual authority to the agent. - Correct Answer-Actual Sometimes, the actions or words of a principal can convince a third party that the agent has authority when in fact the agent has no authority - Correct Answer-Apparent Duties that the principal specifically tells the agent to do - Correct Answer-Express Actual Authority Actions that are necessary to complete the duties that were expressly authorized - Correct Answer-Implied Actual Authority Most agency relationships are formed by this agreement, where a principal appoints an agent, and the agent accepts the appointment. - Correct Answer-Express Agreement The only requirement for establishing an agency relationship is the consent of both parties - Correct Answer-Forming An Agency Relationship The principal and agent may never explicitly state the nature or terms of the relationship, but the agent will be held to the duties of an agency relationship - Correct Answer-Implied Agreement Agency relationships are _____ in nature because one person places trust and confidence in another to responsibly handle the obligations of the position as his or her representative. - Correct Answer-Fiduciary To prevent the broker from becoming a common law dual agent, Texas has specific laws called the intermediary laws. The broker that is representing both the buyer and the seller in the same transaction becomes an ______ - Correct Answer-Intermediary ____ relationships are the backbone of the modern real estate industry - Correct Answer-Agency

Only a _____ can enter into an agency relationship with a seller, buyer, landlord or tenant - Correct Answer-Broker _____ means a meeting or written communication that involves a substantive discussion relating to specific real property - Correct Answer-Substantive dialogue A broker may act as an intermediary between the parties if the parties consent in ____ - Correct Answer-Writing A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without _____ - Correct Answer-Representing you The buyer should not tell the owner's agent anything the buyer would not want the owner to know because an owner's agent MUST disclose to the owner any _____ information known to the agent - Correct Answer-Material With the parties' consent, a broker acting as an intermediary between the parties may ____ a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party - Correct Answer-Appoint A license holder appointed under this section may provide_____ during negotiations to the party to whom the license holder is appointed. - Correct Answer-Opinions and advice The license holder MUST put the interest of the license holder's ____ above the license holder's own interest - Correct Answer-Principal The Texas Real Estate License Act (TRELA) is strongly based upon ______ - Correct Answer-The Code of Ethics The agents will have a _____ relationship with you as their sponsoring broker. It makes the broker liable and responsible for the agent's transactions - Correct Answer-General agency Is an on-going relationship. It will cover many transactions. - Correct Answer-General agency The relationship with a client is called _____ It is for one specific transaction. The agent in the transaction is the broker - Correct Answer-Special agency The only requirement for establishing an agency relationship is the ____ of both parties

• Correct Answer-Consent

A ______ is one where one party (the client) puts complete trust in another party (the agent). - Correct Answer-Fiduciary relationship The licensee is NOT required to disclose to third parties any issues with the property that are not _____ - Correct Answer-Material facts The duty of reasonable care includes two components: - Correct Answer-Integrity and competency The concept of _____ overlaps with the duty of honest and fair dealing - Correct Answer-Integrity The agent should be informed on: - Correct Answer-Market conditions affecting the real estate business and pledged to continuing education in the intricacies involved in marketing real estate for others; Be informed on national, state and local issues and developments in the real estate industry; and Exercise judgment and skill in the performance of the work The obligation of a real estate agent to be knowledgeable as a real estate brokerage practitioner - Correct Answer-Competency "Reasonable time" means - Correct Answer-30 days after demand is made for an accounting or for remittance of money belonging to others "Properly account for or remit" means - Correct Answer-To pay the money to the party or parties entitled to the money if it can be reasonably determined to which party or parties the money should be paid In Texas, most licensees prefer an independent entity, usually the _____, hold these funds in an escrow account - Correct Answer-Title company Texas license law makes it illegal to _____ funds with the licensee's personal or business accounts - Correct Answer-Commingle (mix) The license act requires that the funds are deposited into the account within a reasonable time, allowing up to the close of the______ from the signing of the contract for the deposit to be made - Correct Answer-Second business day If the transaction does NOT close, the money can only be released upon _____ of all parties involved - Correct Answer-Written consent The "Information About Brokerage Services" form is the written agency information required by _____ - Correct Answer-TRELA

What was once cold calling and door knocking has turned into web-sites, texting, tweeting, blogging, skyping and making you-tube videos among other things - Correct Answer-Prospecting Civil Rights Act is also known as - Correct Answer-Fair Housing Act Federal Uniform Trade Secrets Act (UTSA) - Correct Answer-Provides compensation, injunctive relief, attorney fees and punitive damages to companies that are harmed by theft or misuse of trade secrets Dwelling - Correct Answer-A building or place of shelter to live in Fair Housing does NOT cover ______ unless defined as dwelling - Correct Answer-Non dwelling building or commercial Fair Housing Act - Correct Answer-Prohibits discrimination in the sale, rental, advertisement and financing of dwellings The Home Mortgage Disclosure Act (HMDA) (REG C: "C" discrimination) - Correct Answer-Requires lenders to disclose specific lending information, which HUD then uses to map lending patterns The Equal Credit Opportunity Act (ECOA) (REG- B: Be Equal) - Correct Answer-Makes it illegal to discriminate against borrowers Fair Credit Reporting Act (FCRA) (REG-V) - Correct Answer-Act that protects privacy of background information and ensures that information supplied is accurate. Does NOT need to be in writing to be valid - Correct Answer-Express Agreement _____ provides both Approved and Promulgated (required) contract forms, addenda, an amendment, 2 temporary leases - Correct Answer-TREC Provides listings agreements, buyers representation agreements, property management plus brokerage forms - Correct Answer-Texas Association Of Realtors (TAR) Secure and Fair Enforcement Act - Correct Answer-What does SAFE Act stand for? Housing and Economic Recovery Act of 2008 (HERA) - Correct Answer-Law that created SAFE Act TREC has adopted a ______ for staff and enforcement to use in directing license holders as to what might be considered clear and conspicuous in advertising - Correct Answer-Safe Harbor Policy

On a sign or other advertising media, the broker's name or assumed name must be at least _____ of the size of the largest item of contact information - Correct Answer-50% Anyone who is going _____ with people to prospect for buyers and sellers MUST have a valid real estate license - Correct Answer-Call or visit _____ can write ads, put up signs, deliver contracts and paperwork but cannot prospect for buyers or sellers - Correct Answer-Unlicensed Assistants Can my unlicensed assistant unlock the door for potential buyer, if I'm running late? - Correct Answer-No. Unlicensed assistants cannot show a home, and following the passage of a 2007 law requiring criminal background checks for license holders, TREC's interpretation of "show" has expanded to include unlocking and opening doors for potential buyers A person who controls the collection of ____ on a single family residence must have a real estate license - Correct Answer-Rent TREC does NOT provide Listing Agreements, _____ or Property Management Agreements - Correct Answer-Buyer's Representation Agreements If John is a real estate agent and is selling his own home does he have to use a promulgated sales contract form? - Correct Answer-No George is a listing agent. He was showing his listing to a personal friend of his. He shared with his friend that the seller was very anxious to sell. Did George violate his duty of fidelity to his seller? - Correct Answer-Yes Barry has a listing. Another company brought him an offer. Barry happens to know this buyer and knows this buyer filed bankruptcy a few years ago. Barry is concerned as to if the buyer can qualify for financing. Should Barry tell his seller what he knows about the buyer? - Correct Answer-Yes Must the earnest money check be deposited to create a binding contract? - Correct Answer-The formation of a real estate contract requires "consideration" for the contract to be binding My wife and I signed an offer to buy a house over the weekend. Now we have changed our minds and don't want to buy the house after all. Can we get out of the deal? - Correct Answer-If the seller has accepted your offer, you may have a binding contract. There is no automatic three-day or 72 hour cooling off period for you to change your mind like in some other consumer contract situations. Any rights that you have to terminate the contract will be contained in the contract. For example, you may have paid a fee to obtain an "option" period in the contract. You should consult with a private attorney for advice regarding termination of your contract.

Does a lease for a term of longer than one year and a contract for the sale of real estate need to be in writing to be enforceable? - Correct Answer-Yes. The Statute of Frauds, as defined by Chapter 26 of the Business and Commerce Code, requires that certain agreements be reduced to writing to be enforceable. However, you should consult with a private attorney for advice on this matter. Does a license holder have to use TREC's contract forms? - Correct Answer-Yes Does TREC ever discipline a license holder who fails to use an adopted form? - Correct Answer-Yes Can a non-license holder use the promulgated contract forms? - Correct Answer-Yes, forms are available for public use My broker did not fill out our contract properly and the effective date is blank. Does this mean that the contract is invalid or void? - Correct Answer-The Commission cannot make a determination about the validity of your contract. You should consult a private attorney regarding this issue. A license holder's failure to properly complete a TREC promulgated form completely and accurately could be considered negligence and subject the license holder to disciplinary action My client does not want to accept the property "as is" and wants to wait until after the inspection to list specific repairs that he wants the seller to fix. Can I just leave both boxes in Paragraph 7D of the One to Four Family Residential Contract (Resale) blank or can I check 7D 2 and write in "repairs to be listed following inspection"? - Correct Answer-The buyer should only choose Paragraph 7D2 if there are specific repairs known at the time of the contract that the buyer wants the seller to pay for. Otherwise, the buyer should check Paragraph 7D1 Most buyers in your client's situation will then also elect to pay an option fee pursuant to Paragraph 23 in exchange for the right to terminate for any reason within a negotiated number of days. During this ________, an inspection can be performed and if specific repairs are identified, the parties can negotiate to amend the contract to address these items, or the buyer can terminate the contract - Correct Answer-Option Period How are days counted in a TREC contract? Starting with the effective (final execution) date of the contract, the first day of the period starts ______ Each day is counted as calendar day. - Correct Answer-The next day TREC Promugated Contract Forms Available - Correct Answer-1. 6 promulgated contracts

2. 15 promulgated addenda (including 2 temporary leases)
3. 1 promulgated amendment
4. 2 promulgated resale certificates
5. 2 promulgated notices

6. 2 promulgated consumer disclosures
7. 7 approved forms The six contract forms promulgated by TREC are: - Correct Answer-1.One to Four Family Residential Contract (Resale) 2.Farm and Ranch Contract 3.Condominium Contract 4.Unimproved Property Contract 5.New Home Contract (Complete Construction) 6.New Home Contract (Incomplete Construction) When filling out the TREC contract forms, licensees should only include information that they know is _______ - Correct Answer-Factual and Truthful Texas courts have consistently held that the One-to-Four Family Residential Real Estate Contract is an ________ - Correct Answer-As-Is Contract An as-is clause might bar claims brought under the _______ - Correct Answer-DTPA The contract is canceled and the parties are restored legally and financially to the position they were in before entering the contract - Correct Answer-Rescission To the extent that a deed restriction applicable to a structure on residential property requires the use of a _______, the restriction is void - Correct Answer-Wood Single Roof *Environmental Issues (Wetlands, Endangered Species, Soil Contamination, Asbestos, Radon, Stucco, Lead Paint, Electromagnetic Forces) *Flood Zones/ Mud Districts/ Zoning Issues *Information to Buyer's and Seller's regarding Assumptions *Items that do not stay with the Property *Mandatory Membership in an Owner's Association and Resale Certificates *New Home Insulation *Property Condition (Roofs, Drainage, Foundation, Plumbing, *Electrical, Termite Damage, Artificial Stucco) *Representation by the agent *When the agent is acting as a Principal *Roll Back Taxes and Tax Exemptions *Stigmatized Property (Unrecorded Cemeteries, Notorious Properties, Violent Death,) *Title Notice recommending buyer obtain a title policy or an abstract - Correct Answer- Factual Information Previous or current occupant of real property may have had, has, or may have AIDS, HIV-related illnesses, or HIV infection as defined by the Centers for Disease Control of the US Public Health Service - Correct Answer-Cannot disclose, it would be illegal