Texas Real Estate Salesperson Exam

What is the criminal penalty for engaging in the real estate brokerage business in Texas without first becoming licensed by TREC?

A fine of not more than $4,000

An individual has successfully sued a licensee in connection with a single transaction and won a judgment of $110,000. The licensee has declared bankruptcy and TREC has agreed to pay out of the recovery trust fund on behalf of the licensee. How much will

50,000

How many properties can an unlicensed investor sell in a year?

Unlimited

All approved MCE Classes include

6 hours of legal update required by TREC

A licensee in Texas can

Prepare a contract addendum for a client

A broker from Colorado refers a buyer to a Texas Broker. The Texas Broker works with a buyer who finds a property to buy. The buyer then asks the licensee in Colorado to represent his interest to the Texas broker. The Colorado broker reviews all the terms

yes

A broker has received a referral from his neighbor. The referral results in a sale, and the broker earns a commission on the transaction. How can he thank his unlicensed neighbor for his referral?

No commission

When telemarketing for listings in Texas, a licensee must obey the Texas "no call" list. This list regulates:

Interstate and Intrastate calls

Disclosure of agency must be given

At first substantive dialogue

A broker sponsors one associate licensee. He has a listing and a buyer client who wants to purchase that listing. What is true?

He can do intermediary without appointments

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?

7 days

In the usual Texas listing agreement, how long is the protection period?

Number of days negotiated between the broker and the seller

According to the TREC contract form, when must the title company deliver the title commitment to the buyer?

20 days from the receipt of the contract

How long does a broker have to deposit escrow money into an escrow account?

Until the close of the 2nd business day after the contract has been executed

A young married couple buys a single family home in Texas. They close on and move into the house on March 2nd; however

They are NOT immediately eligible for the Homestead exemption on their property

TREC has received an application for a Texas Real Estate Sales License from Mary. Mary has completed all of her education requirements, and passed the state exam. At this point TREC will begin the background check. This is NOT true.

TREC has 30 days to complete the background check

In the event of a conflict between the statutory duties of Intermediary and the common law duties of dual agency which takes precedence?

Statutory Intermediary

The buyer with a signed sales contract has been unable to obtain financing. He has made a conscientious effort to do so. This is NOT true.

The buyer must pay any earnest money stated in his offer

According to the TREC One to Four Family Residential Contract, who is responsible for paying the owner policy of title insurance?

The party stipulated in the contract.

This statement is NOT found in the TREC 1-4 Family Resale Contract

If the lender required repairs exceed 20% of the sales price, the buyer may terminate the contract.