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Texas Real Estate Exam (State Portion): Special Topics Questions With Complete Solutions, Exams of Real Estate Management

Southeastern Louisiana University Real Estate Management

A series of multiple-choice questions and answers related to special topics in texas real estate law. It covers various aspects of real estate transactions, including community property, brokerage practices, disclosure requirements, and the role of the texas real estate commission. Useful for individuals preparing for the texas real estate licensing exam.

Typology: Exams

2024/2025

Available from 01/31/2025

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Texas Real Estate Exam (State Portion): Special

Topics Questions With Complete Solutions

Community Property correct answer: property acquired by

husband and wife after marriage UNLESS gifted, willed, or

inherited; Intestate: @ death 1/2 passes to survivor and 1/2 to

statutes of decent and distribution; testate: @ death to survivor

A broker can communicate to clients the availability of a trust to

pay damages to aggrieved persons in which of the following

ways?

1. By informing them verbally at first substantive contact

2. By directing them to the web site of the Texas Real Estate

Commission

3. Through writing via a receipt for professional services, a sign

posted in the licensee's place of business, or on a brochure

distributed by the licensee

4. In writing when a client makes a formal grievance complaint

to the broker correct answer: 3. Through writing via a receipt

for professional services, a sign posted in the licensee's place of

business, or on a brochure distributed by the licensee

What is the TREC one to four family residential contract used

for:

The TREC ONE TO FOUR FAMILY RESIDENTIAL

CONTRACT (RESALE). , and the contract encourages

mediation for dispute resolution. If lender required repairs

Partial preview of the text

Download Texas Real Estate Exam (State Portion): Special Topics Questions With Complete Solutions and more Exams Real Estate Management in PDF only on Docsity!

Texas Real Estate Exam (State Portion): Special

Topics Questions With Complete Solutions

Community Property correct answer: property acquired by husband and wife after marriage UNLESS gifted, willed, or inherited; Intestate: @ death 1/2 passes to survivor and 1/2 to statutes of decent and distribution; testate: @ death to survivor A broker can communicate to clients the availability of a trust to pay damages to aggrieved persons in which of the following ways?

By informing them verbally at first substantive contact
By directing them to the web site of the Texas Real Estate Commission
Through writing via a receipt for professional services, a sign posted in the licensee's place of business, or on a brochure distributed by the licensee
In writing when a client makes a formal grievance complaint to the broker correct answer: 3. Through writing via a receipt for professional services, a sign posted in the licensee's place of business, or on a brochure distributed by the licensee What is the TREC one to four family residential contract used for: The TREC ONE TO FOUR FAMILY RESIDENTIAL CONTRACT (RESALE). , and the contract encourages mediation for dispute resolution. If lender required repairs

exceed 5% of the price (not 10%), the buyer may terminate the contract. correct answer: Used for the resale of residential properties that are either a single family home, a duplex, a tri- plex or a four-plex. Tammy Doherty, a licensee found to be in violation of the Act, has been ordered to pay an administrative penalty of $1,000. Tammy has 30 days to:

Deliver her license certificate to the Commission office
Pay the penalty, stay the penalty, or contest the decision
Engage legal counsel to file a writ with the Commission contesting the violation, the penalty, or both
Appear before the Commission to plead her case correct answer: 2. Pay the penalty, stay the penalty, or contest the decision What is the difference between a broker in an intermediary position and an appointed associate under intermediary?
The appointed associate can give advice and opinions to one party in the transaction, but the broker cannot give advice and opinions to any party
The appointed associate can give advice and opinions to both parties, but the broker cannot give advice and opinions to either party
There is no difference
The appointed associate can give advice and opinions to one party, but the broker can give advice and opinions to both parties correct answer: 1. The appointed associate can give advice and

Prior to issuance of an inspector's license, a newly approved inspector must remit what amount to the Real Estate Inspection Recovery Fund?

$
$
$
$50 correct answer: 3. $ Brewster Realty has current agency agreements with both the sellers and a buyer. The buyer would like to make an offer on the Sellers' property. Would this be legal?
Yes, the situation is permissible if Brewster realty discloses the situation to both parties and receives written permission from both the buyer and Sellers.
Yes, but only if the Sellers accept full responsibility for the broker's commission.
No, such a transaction would put Brewster Realty in the position of becoming a dual agent, and the broker would not be able to fairly and honestly represent the interests of both parties.
Yes, as long as the buyer appoints the broker and he/she remains a neutral intermediary in transaction negotiations. correct answer: 1. Yes, the situation is permissible if Brewster realty discloses the situation to both parties and receives written permission from both the buyer and Sellers. A sponsoring broker, has made the decision to terminate his sponsorship of Ralph Cho. What step must he take?

Provide Ralph with an official letter of resignation of sponsorship, clearly stating the reasons for the decision, that he may submit to the Texas Real Estate Commission for her files
Notify Ralph immediately and return his license to him so he can find a new sponsoring broker
Notify Ralph in writing that he wishes to terminate his sponsorship and give 30 days to appeal his decision, in writing; if he fails to appeal, or if his appeal does not change his decision, he may then terminate his sponsorship immediately
Immediately notify in writing both Ralph and the commission. correct answer: 4. Immediately notify in writing both Ralph and the commission. Which of the following about the Texas Real Estate Commission is not true?
Six Texas Real Estate Commission members are public and three Texas Real Estate Commission members are brokers.
The Texas Real Estate Commission can advise with reference to its rules and the laws that govern license holders.
The Texas Real Estate Commission has 9 members.
The Texas Real Estate Commission has subpoena power. correct answer: 1. Six Texas Real Estate Commission members are public and three Texas Real Estate Commission members are brokers. A buyer can terminate the contract if lender required repairs exeed what percentage of the price? correct answer: 5% How much time does a title company have after receiving the contract to provide a commitment of title insurance? correct answer: 20 days

A lawyer arranged the transfer of a primary residence between divorced spouses. correct answer: 3. A real estate broker has successfully negotiated the sale of a previously occupied single-family dwelling. According to the TREC contract form, when must the title company deliver the title commitment to the buyer? twenty days from the receipt of the contract twenty-one days from the receipt of the contract twenty-one days from the effective date of the contract twenty days from the effective date of the contract correct answer: twenty days from the receipt of the contract Grant Parks, a general contractor, and his business partner Sam Davis, a licensed broker, decide to buy a rundown apartment building in downtown Houston for which Sam is the listing agent. The property has been on the market for over nine months and has not attracted any offers. Grant and Sam plan to rehab the building and seek a change in zoning to make it more marketable. Can Grant buy the property from the seller without disclosing his partnership with Sam?
Yes, in arranging for the sale, Sam is fulfilling his fiduciary obligations to the seller.
Yes, Grant can acquire the property without disclosing their plans because he is not a licensed realtor.
No, Grant should inform the seller of his partnership with Sam.
No, Sam cannot be involved in owning a piece of property for which he was the listing agent within the past eighteen months.

correct answer: 3. No, Grant should inform the seller of his partnership with Sam. A Texas broker has signed an Exclusive Right to Sell listing agreement with a negotiated commission of 5.5%. He has a buyer-client with a written Buyer Representation Agreement. His buyer-client wants to buy the seller-client's property. What role will this broker play in this transaction?

Dual agent
Transaction facilitator
Intermediary
Subagent correct answer: 3. Intermediary A licensee subject to MCE has completed an on-time renewal and payment of license fee but has not satisfied the MCE requirement. All of the following are true EXCEPT:
If MCE is not completed within the sixty days the license will be moved to inactive status
After sixty days the licensee can remain active by paying another $250 fine
The licensee has sixty days to complete the MCE and may remain active in that time period
The licensee will be required to pay a $200 deferral fee for the failure to submit MCE correct answer: 2. After sixty days the licensee can remain active by paying another $250 fine A buyer is unable to obtain credit approval as described in the Third Party Financing Addendum for Credit Approval. If the

and they would like to pay it off now. Will they be subject to a prepayment penalty?

Yes, but no more than five percent of the current balance of the loan may be levied as a prepayment penalty.
Yes, the lender is entitled to levy a prepayment penalty equal to a full year of interest on the current balance of the loan.
It depends on the lender; Texas statue does not take a stance on prepayment penalties.
No, because the interest rate is greater than twelve percent. correct answer: 4. No, because the interest rate is greater than twelve percent. A buyer has submitted an offer to purchase a seller's property without receiving the seller's disclosure of property condition. How many days does the buyer have to terminate the offer once he receives the disclosure?
seven
Any negotiated number of days
five
ten correct answer: 1. seven Bill Thierauf is a licensee in Mesquite. Although he is an outgoing and engaging man known for setting clients at ease and smoothing ruffled feathers, he makes constant substantive errors in anything involving mathematical calculations. After a client won a $15,000 award from the recovery fund due to Bill's incompetence, Bill is facing certain discipline. Which of the following options would NOT be available to the commission in pursuing disciplinary action?

Limit the scope of Bill's practice to the marketing and showing of properties, ensuring that he doesn't have the opportunity to make any more costly mathematical errors
Revoke Bill's license until he has remitted the full cost of the $15,000 award paid out of the trust account, plus interest at a legal rate
Require Bill to report regularly to the commission during a period of probation
Charge Bill with a class A misdemeanor for negligence correct answer: 4. Charge Bill with a class A misdemeanor for negligence The commission can also impose probation and limit the scope of a licensee's practice to an area of competence; require a licensee to report to the commission regularly regarding the area of probation; or continue to require the licensee to complete continuing education in the area of deficiency until achieving a level of competence satisfactory to the commission. correct answer: -Impose probation -limit scope of Licensee's practice in are of competence -require licensee to report to the commission -require licensee to continuing education in are of deficiency until achieving competence to the commission Rex Kinsella has received two offers on his ranch and acreage. The sprawling Sheffield estate, replete with large Spanish colonial manor house, horse barn, several smaller outbuildings, and several acres of cleared land is a steal at only $216,500. The first offer, from Clara Walters, a young woman who wants to start a horse riding academy, is for $211,900 cash. The

covenants, conditions, and restrictions correct answer: 4. covenants, conditions, and restrictions Which of the following statements regarding mold and mold remediation is false?
A property owner can assess and remediate mold on his own property without a license
If mold is visible, it must be remediated
All certificates no more than 5 years old must be provided by sellers to buyers
A certificate of mold remediation must be provided no more than 10 days after the work is complete correct answer: 2. If mold is visible, it must be remediated Which broker has the right to determine the division of commission?
The division of commission is negotiable between the two brokers 2. Just the selling broker since he is bringing the offer to the seller 3.Just the listing broker since he owns the commission and commission split as negotiated in the listing agreement
Either broker since the division of commission is at the discretion of the broker correct answer: 3.Just the listing broker since he owns the commission and commission split as negotiated in the listing agreement Kelly, A seller, is queried as to whether any known plumbing defects exist in her home. She replies that no, to the best of her knowledge, there are no plumbing defects. Unbeknownst to her,

the pipes are corroded and due for replacement. Is she in violation of her disclosure responsibilities?

Yes, unless she was specifically qualified to answer the question or had qualified advice, she was in violation of her responsibility to disclose material defects.
No, because she is not required to answer this question; any material defects will be discovered during the inspection.
Yes, because it is her responsibility to make sure the property is free of material defects or to report them.
No, since she is unaware of the plumbing issue, she is not liable for failure to disclose material defects. correct answer: 4. No, since she is unaware of the plumbing issue, she is not liable for failure to disclose material defects. Which of the following is true of income earned by separate property in Texas?
The income is not subject to taxes.
All earnings from community property and separate property are presumed to be community property.
Half of the income is presumed to be community property, while the other half of the income is considered separate property.
The income is considered separate property. correct answer:
All earnings from community property and separate property are presumed to be community property. Which of the following is NOT true of an easement along the Gulf Intracoastal Waterway?

In writing at first contact
In writing at the first face-to-face contact with a party
Using the the Texas Real Estate Commission promulgated IABS at the first face-to-face contact correct answer: 1. Orally or in writing at first contact All of the following must be licensed as brokers EXCEPT:
A third party who controls the acceptance or collection of rent from a single-family residence.
An investor-owner collecting or accepting rent from single family residential properties
Any business entity that engages in real estate brokerage and is required to be registered to do business in Texas with the Secretary of State
The designated officer of a licensed real estate corporation correct answer: 2. An investor-owner collecting or accepting rent from single family residential properties Which of the following is NOT found in the TREC one to four Family Resale contract?
If lender required repairs are more than 5% of the sales price the buyer may terminate the contract
The contract encourages the parties to agree to mediation for dispute resolution
If lender required repairs exceed 20% of the sales price the buyer may terminate the contract
If the buyer makes an offer prior to receiving the Seller's Disclosure of Property Condition, the buyer will have seven days to terminate the offer once he receives the disclosure

correct answer: 3. If lender required repairs exceed 20% of the sales price the buyer may terminate the contract Which of the following actions is a broker or licensed salesperson required to perform after signing a listing agreement?

Maintain a listing file with a number given to the case in accordance with the specifications of the Texas Real Estate Commission. 2. Communicate and cooperate with other brokers wishing to participate in the marketing of the listing.
Provide the seller a legible, signed, true, and correct copy of the listing.
Advertise the listing as soon as possible in local places correct answer: 3. Provide the seller a legible, signed, true, and correct copy of the listing. What are the TREC forms to disclose representation on first contact? correct answer: There is NO TREC form for this. What is the time period required in Texas to establish an easement by prescription? To establish an easement by prescription in Texas, an individual must prove continous, open, and notorious use of the land for a period of 10 years. correct answer: Must prove continous, open, and notorious use of land for a period of 10 years. What is true about the Information About Brokerage Services?
Licensees must provide this information on any form

The broker must use the Texas Real Estate Commission promulgated forms for intermediary status and appointments.
The broker must have the written permission of the seller and the buyer, including information on how the broker is to be paid. correct answer: 4. The broker must have the written permission of the seller and the buyer, including information on how the broker is to be paid. In Texas, income from community property and separate property is generally presumed by Texas law to be______________________________. correct answer: Community property Canyon Properties in Killeen, Texas owns a two-family dwelling that generates a 12.5% return on its value, or an annual return of $17,000. What would the value of this property be in terms of an income approach to value?
$76,
$17,
$136,
$215,500 correct answer: 3. $136, info: $17000 annual return 12.5% return on its value Value in terms of an income approach? Solve: 100% divided by 12.5% = 8 8 * 17000 = 136,

Which of the following closing tasks is outside the realm of a salesperson or broker's duties?

Disbursing escrow monies to attorneys
Going over closing procedures with the buyers and/or sellers
Arranging a schedule for closing
Conducting the necessary title searches correct answer: 4. Conducting the necessary title searches Title searches are relegated to what domain? correct answer: legal domain Which of the following actions is NOT a violation of the Texas Real Estate License Act?
Placing a sign to sell or lease real property with only the verbal consent of the owner.
Selling real estate by lottery.
A broker guarantees a buyer that, based on past performance, an investment property will appreciate over the next two years.
A broker offers a guaranteed buy back of a property for a set price, if the purchaser is not happy with the investment after a two-year period of ownership. correct answer: 4. A broker offers a guaranteed buy back of a property for a set price, if the purchaser is not happy with the investment after a two-year period of ownership. The seller must provide remediation certificates to buyer that are no mare than ______________________ years old. correct answer: 5 years old

Texas Real Estate Exam (State Portion): Special Topics Questions With Complete Solutions, Exams of Real Estate Management

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Partial preview of the text

Download Texas Real Estate Exam (State Portion): Special Topics Questions With Complete Solutions and more Exams Real Estate Management in PDF only on Docsity!

Texas Real Estate Exam (State Portion): Special

Topics Questions With Complete Solutions