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Terms in this set (210)
A contract is said to be bilateral if:
All parties of the contract are bound to act.
It is unlawful for a person to act as a real estate salesperson unless
Such person is legally associated with a licensed Texas Real Estate broker. (All salesperson must be sponsored by a real estate broker before performing any acts as a real estate licensee)
When a client tells an agent to do something illegal, what should the agent do?
Terminate the agency relationship. (Anytime a client ask a licensee to do something illegal and the client insist that it be done, the licensee has no choice but withdrawal for the agreement)
According to Real Estate license act of Texas which one of the following actions would be a fair and impartial act of an intermediary?
Appointing associated licensee to work with the parties in a transaction would be a fair and impartial act for an intermediary
If a property has had mold but it has been remediated, is the seller required to disclose this to the purchaser?
No, if it has been more then 5 years (Mold must be disclosed even if it has been remediated, for a period of 5 years. This applies even if the current owner is not the party that had the mold issue or had the remediation done)
What is the stated purpose of the Texas Real Estate Recovery Fund?
To protect the public from monetary loss due to the illegal acts of licensees. (The recovery fund was established to protect the public from monetary loss due to illegal acts of a licensee.)
A Real Estate salesperson may receive compensation from
Only the employing broker (Only the sponsoring broker may pay the salesperson. All compensation must be paid by the sponsoring broker as of the date that the agent earned the compensation)
Who does a buyer employ when signing a Buyer Representation Agreement?
A Broker. (Agency is always created at the broker level; therefore the agreement is between the broker and the buyer)
Who is responsible to the TREC, their clients, and the public for the actions of a real estate salesperson
The salesperson's broker is responsible for all occupational acts of any salesperson sponsored by the broker
Bill and Beth enter into a contract to purchase a single family home currently owned and occupied by Lenny and Linda. Lenny and Linda do not furnish Bill and Beth with a seller's Disclosure form. Which of the following statements is true?
The contract is voidable at the option of Bill and Beth. (If the seller does not provide the purchaser with a "Seller' Disclosure Notice" the purchaser has a right to void the contract at any time prior to closing)
Henry owns a fee simple title to unit 12 and 5 percent of the common elements. What does Henry own?
A condominium. (An owner of a condominium owns their individual unit and has a percentage of the undivided interest in the common elements)
What must the Texas Real Estate Commission do before revoking a salesperson's or broker's license?
Hold a hearing. (The Texas Real Estate Commission must hold a hearing giving the licensee the opportunity to be heard before the commission)
When may a broker functioning as an intermediary appoint one licensee to communicate with the seller and another licensee to communicate with the buyer?
When written permission to do so has been obtained from the parties. (The broker may appoint a licensee to communicate with the seller and another communicate with the buyer only after receiving written permission from BOTH parties)
An advantage for organizing a business as a limited liability company is its
Limits on the liability of members for company debts or other obligations. (As a limited liability company the company is responsible for the debt and obligations of the company and the members are limited to the amount that they invested.)
No Federal Fair Housing laws are violated if a landlord refuses to rent to
Students. (Students are not a protected class by the Federal Fair Housing laws. You should always check with local law in your area.)
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