If an applicant for a sales license engages in a brokerage transaction, the applicant Correct Answer: may face criminal charges resulting in fine and or jail An unlicensed assistant is hired to increase an agent's listing inventory. The assistant may... Correct Answer: create marketing flyers and distribute the flyers door to door An individual is exempt from real estate licensure in Texas if the individual is doing which of the following... Correct Answer: being an on-site manager of an apartment complex When a sales agent's sponsorship is terminated by his sponsoring broker, the broker must... Correct Answer: notify the sales agent of the termination in writing and return the license to TREC immediately If an unlicensed individual provides a referral that ends in a closing, how can you repay them? Correct Answer: With a $50 gift card (not cash) A license holder, while acting as an agent for another, should... Correct Answer: Be scrupulous and meticulous in performing the agent's functions When a broker is acting for more than one party, the broker should disclose Correct Answer: any known material defects on the property In which of the following situations would Texas property code excuse the seller from delivery of the seller's disclosure notice regarding the condition of the property? Correct Answer: The property is being sold as a foreclosure Agents disclosure representation must be made Correct Answer: in writing and orally According to the TREC residential resale contract form, if termination option fee is paid, day one of the option period is Correct Answer: the day following the effective date of the contract Your buyer-client insists on entering into a lease-purchase agreement. You must: Correct Answer: Recommend that the buyer seek the advice of an attorney An agent has received a $75 check from a home warranty company. Can he keep the check? Correct Answer: Yes, if the agent provided the RSC disclosure and the broker authorize the payment to the agent If a cash buyer would like to have an appraisal done to ensure that a property is priced at or below market value, the agent should: Correct Answer: Advise the client to talk to an attorney for the proper wording to put in the contract If the buyer and seller agree to rely on an existing survey, the survey and the affidavit T-47 must be provided Correct Answer: Within the specified number of days of the effective date of contract If either party to the contract breaches the agreement and is in default, can injured party terminate the contract? Correct Answer: Yes A license holder MUST use a TREC promulgated form except Correct Answer: the principal requires the use of another form When must a property owner declare their primary residence as their homestead to get homestead protection Correct Answer: never A DTPA claim cannot be brought against a license holder for Correct Answer: giving incorrect advice or opinions Before closing, if a buyer has not received the MUD disclosure, what option does the buyer have? Correct Answer: revocation of the contract A broker entered into a representation agreement with a buyer on the phone. The broker found a property for the buyer and was the procuring cause of the sale. The buyer has refused to pay the agreed commission. What can the broker do? Correct Answer: According to TRELA, there is no recourse for the broker Which of the following is requested through the HOA Addenda? Correct Answer: a resale certificate What information is contained in Paragraph 7D of the 1-4 Family Contract? Correct Answer: "as is" provision What information is contained in Paragraph 11 (Special provisions) of the 1-4 Family Contract? Correct Answer: business details What type of information can you put in paragraph 11 of the 1-4 family Resale Contract? Correct Answer: business details An HOA wants to foreclose on a property owned by a solider on active duty. Based on the Serviceman's Readjustment Act what is true? Correct Answer: The VA must be notified before this foreclosure can proceed Which of the following is NOT required for a back-up offer to become effective? Correct Answer: the back-up buyer must name his inspectors A broker is not required to Correct Answer: Be sure to review all contracts prepared by license holders he sponsors If a broker is using an assumed name, or DBA, this must be filed in: Correct Answer: In the county courthouse in every county where he has an office