Champions Exam State Questions With 100% Complete Verified Answers, Exams of Law

Download Champions Exam State Questions With 100% Complete Verified Answers and more Exams Law in PDF only on Docsity! Champions Exam State Questions With 100% Complete Verified Answers TREC has received an application for a Texas Real Estate Sales License from Mary. Mary has completed all her educational requirements, and passed the state exam. At this point TREC will begin the background check. What is FALSE? (a) TREC has no time limit for determining integrity (b) TREC has 30 days to complete the background check (c) TREC has 30 days to notify Mary of a decision to disapprove her application (d) Mary has 10 days to appeal a denial of her application - False: TREC has 30 days to complete the background check. DEF: TREC has no limit on days to review your application or complete your background check. They have 30 days to notify you of their decision and you have 10 days to appeal that decision. Marcos was a TX licensed Real Estate Sales agent for some time. He then chose to become inactive and TREC has been holding his license in inactive status. He now wishes to activate the license. What will he have to do? - Apply through a broker, pay *$50* and take a *18-hour* continuing education course A license holder has defaulted on his student loans. As a result of this TREC will? - *Refuse to renew the license*, unless and until, the loan payments are brought up to date. Does the IABS disclose agency or personal interest? - Agency Interest When a license holder markets his own property he should? - Inform the buyer that he is a license holder, and the owner of the property. DEF: Per TRELA you must always disclose self, spouse, parent or child is involved in a real estate transaction. The IABS discloses agency not personal interest. There is no TREC promulgated form solely intended for this disclosure although paragraph 4 of the TREC contracts are now used for this. Not mentioning your personal interest in a transaction is illegal. A Texas broker may pay a commission to? (a) A foreign broker who doesn't negotiate in Texas (b) A licensed attorney in Texas (c) An in-house employee of a principal (d) Any unlicensed person for a referral - A foreign broker who doesn't negotiate in Texas. DEF: Any licensed broker outside of Texas is considered a foreign broker and may be paid a referral fee out of your commission. Attorneys must also have a real estate license. In-house employees must have a license. Only licensed brokers in Texas can receive a real estate commission in Texas. Which of the following actions is NOT a violation of the TRELA? (a) 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 (b) A broker guarantees a buyer that an investment property will appreciate over the next two years (c) Selling real estate by lottery (d) Placing a sign to sell or lease real property with only the verbal consent of the owner - Putting your money where your mouth is and signing a contract to purchase with a two year close date to buy it back yourself is legal. You can't guarantee a future profit verbally as this is illegal. Selling real estate by lottery and putting a sign in the yard on verbal consent is also illegal. A sales agent wished to transfer to a new broker. When may he engage in the business? An individual has successfully sued a license holder in connection with a single transaction and won a judgment for $110,000. The license holder has declared bankruptcy and TREC has agreed to pay out of the recovery trust account on behalf of the license holder. How much will TREC pay? - $50,000 is the maximum TREC will pay in connection with a single transaction. How many properties can an unlicensed investor sell in a year? - An unlicensed investor can buy and sell his own properties an *unlimited* number of times per year. Requirements for obtaining a broker license in Texas include? - 4 years of experience out of the past 5 years and 3600 points What department of the Federal Government administers the Do Not Call list? - The FTC (Federal Trade Commission) When must disclosure of agency be given? - *At the first substantive dialogue* Disclosure of agency (the IABS form) must be given to a prospect at the first substantive dialogue. This can be a face to face meeting that includes a substantive discussion about real estate or a mailing including a substantive amount of information about any particular property. The TREC IABS form is not promulgated. It is a voluntary form. A broker sponsors only one associate license holder. He has a listing and a buyer client who wants to purchase that listing. What is true? (a) The broker cannot do Intermediary and must send the buyer to another firm for representation (b) He can do intermediary without appointments (c) He can represent the seller and his associate can be appointed to represent the buyer (d) He cannot do intermediary but can do dual agency - Intermediary without appointments A broker who works alone or who only sponsors one associate can do Intermediary without appointments. Since the broker can never be one of the appointees, the broker needs at least two associates under his sponsorship in order to do Intermediary with appointments. An appointed associate under Intermediary: (a) Can give advice and opinions to one party to the transaction (b) Can only disclose facts (c) Cannot give advice, but can give opinions (d) Should refer the client to the broker for any advice - An appointed associate can disclose facts and give both advice and opinions to one party in a transaction. It is not necessary to send the client to the broker for any advice. How long does a broker have to deposit earnest money in an escrow account? - Until the close of business of the *2nd business day* after the offer was accepted and acceptance was communicated. T/F Real Estate Inspectors must use promulgated inspection forms for all properties - False DEF: TREC does not have promulgated inspection forms for all properties. They only have forms for residential inspections. T/F Earnest money and option fees can be combined in one check from the buyer. - False DEF: The option fee must always be paid separately from all other fees, because it is paid directly to the seller, and it is never refundable. Although earnest money is not necessary, the option fee is necessary if there is an option clause in the contract. A young married couple buys a single-family home in Texas. They close on and move into the house on March 2nd. All of the following are true except: (a) The property is community property (b) They are immediately eligible for the Homestead exemption on the property (c) They are immediately eligible for Homestead protection (d) Their broker can perform property tax consulting services for them on the property - False: They are immediately eligible for the Homestead exemption on the property. DEF: *The Homestead Exemption is a tax benefit. Homeowners must qualify and apply*. Homestead protection is automatic for all home owners in TX. Because the buyers are married, the property will be considered community property and because it is a single family home, the broker can provide tax consulting services for the buyers. All approved CE classes include how many hours of legal update? - 8 Hours A license holder in Texas can: (a) Prepare a contract addendum for a client per their instructions (b) Prepare a contract for a client (c) Prepare a will for a client (d) Prepare a lease purchase agreement for a client - Prepare a contract addendum for a client per their instructions In the usual Texas Listing Agreement, how long is the protection period? - The number of days negotiated between the broker and the seller TREC can investigate the actions of a license holder at its own motion. Under what other circumstances can TREC investigate a license holder? - If they have a written, signed complaint no more than 4 years old A broker has several offers on one of his listed properties. What is true? (a) He only has to present offers that he believes are in the seller's best interest (b) He must present all offers in whatever order he chooses (c) He must present all offers in the order in which they were received (d) He must present the best offer first and if the seller accepts that offer he does not have to present any additional offers - He must present all offers in whatever order he chooses Which of the following statements regarding mold and mold remediation is false? The total hours required at the end of your SAE renewal period consist of? - 270 core hours plus 8 hours of Legal 1 & 2 (278 total) NOTE: 180 hours were needed to earn a license. Prior to the first renewal 90 core hours of Sales Agent Apprentice Education (SAE) is needed. This 90 hours added to the 180 gives a total of 270 core hours. CAUTION: Watch the wording on this question. If they are asking for total hours needed 278 is correct. If they are asking for core hours needed 270 is correct. The 8 hours of legal update: Legal 1 and 2 does not count as core hours. A property is being sold "as is" per the advertisement. Can the broker keep the commission if the sale is reversed? - YES. The broker can keep the commission which was earned when the property was sold. A buyer under contract has had an inspection performed and doesn't want the property. What are the options to back out? - The buyer can back out during a due diligence or option clause in the contract. An unlicensed person owns an option to purchase real property for a $190,000. He advertises the option for sale for $20,000. Is this legal? - Only legal with full disclosure of the terms of the option An agent switched brokers in the middle of a sale where the house is already under contract. Which broker owns the listing? - The first broker owns the listing and remains the primary broker for the transaction. An agent is aware of a foundation issue that was not disclosed on the Seller's Disclosure. She discusses it with her broker who advises the agent to let the Seller fill out the Disclosure. Who is in violation of DTPA? - Both the agent and the broker are in violation. Where should the consumer protection notice be? - On the Brokers office wall. What is an example of something that could be entered in Paragraph 11? - Business details EX: The seller will pay ½ of the closing costs for the buyer. Where or to whom does the Earnest Money Deposit go? - An Escrow Account What would not cause a license revocation by TREC? - a 2nd DUI conviction is not on the list of causes for revocation of licensure. A sales agent is hired to list the property of a deceased party who died testate. The license holder must? - Obtain the signature of the *executor* named in the will. A property has been listed for sale at $495,000. Several buyers are interested in the property and after a small bidding war the sellers have accepted an offer for $505,000. Included in the offer was the condition that the dining room furniture, washer and dryer be part of the sale. Where can this information be covered to insure that all parties are protected? - In an addendum to the sales contract and a Bill of Sale A buyer has purchased an option on a commercial property for $5 million. The negotiated option fee is $50,000 and the parties have agreed that it will be paid within 5 days. How/where may the option fee be paid? - By Money Order to the seller An option fee is always paid upfront directly to the seller and is not refundable. Through TRELA you may be awarded damages up to? - 3x the amount of money received An unlicensed assistant may do which of the following? (a) show a home (b) host an open house (c) give an overview of the market to a buyer (d) prepare a CMA - Prepare a CMA When is the termination option fee in the 1-4 Family Contract due? - By midnight of the 3rd calendar day, after the effective date of the contract Who is eligible for a TVLB Loan? - Eligible Spouses When a broker posts pictures of other brokers' listings on his website, what is required? - Written Permission A foreign broker advertises that he sells houses outside his state for a flat fee. What is true? - He must refer this transaction to a resident broker in Texas. A buyer and seller have signed a Texas sales contract. The buyer has not received the Seller's Disclosure. The buyer can terminate for how many days? - For up to 7 days after he receives the disclosure What are the requirements to become a licensed broker in TX? - *900* hours of education, *3600* points and *4 out of the past 5* years active real estate salesperson licensure