What is the stated purpose of the Texas Real
Estate Recovery Fund?
Detailed Answer
b. The fund protects the public from noncollectible judgments acquired against
licensees in a court action. Payment amounts
are limited by statute. Payments can only be
made by the Texas Real Estate Commission
upon the direction of a court of competent
jurisdiction
2
A landlord refuses to return a security deposit
to a tenant who has fulfilled the terms of the
lease, returned the keys to the landlord, furnished a forwarding address, and left the premises in good condition by most people’s
standards. What remedy is available to the
aggrieved tenant?
Detailed Answer
a. Under Texas statute, a tenant is presumed to
be entitled to recovery of a security deposit.
The burden of proof is on the landlord to
convince the court that the tenant is not
entitled to a return of the deposit. Failure to
do so makes the landlord liable for three
times the amount of the deposit plus court
costs and reasonable attorney’s fees plus
$100.
3
What entity licenses and regulates property tax
consultants?
Detailed Answer
b. Article 8886 of the Texas Civil Statutes places
jurisdiction of property tax consultants
under the Texas Department of Licensing
and Regulation.
4
Using the Texas Real Estate Commission
promulgated One- to Four-Family Residential
(Resale) form, which of the following is NOT
acceptable language for Paragraph 11, Special
Provisions?
Detailed Answer
a. Texas courts will generally apply the reasonable time rule when interpreting contracts.
To write “time is of the essence†into Paragraph 11 would change how the court would
have to interpret the contract and therefore
constitute an unauthorized practice of law
on the broker or salesperson.
5
A broker has a listing agreement signed by a
seller, and a buyer representation agreement
signed by a buyer who is interested in purchasing the seller’s property. Both parties have
granted the broker permission to function as
an intermediary through the written representation agreements. The buyer tells the broker
that if he is successful in acquiring this property, he plans to purchase the surrounding
property also. What should the broker tell the
seller about this information?
Detailed Answer
c. When giving written permission for the broker to function as an intermediary, both parties have agreed that the intermediary cannot disclose confidential information of the other party unless express written permission has been obtained from the other party
to do so.
6
Under the Canons of Professional Ethics and
Conduct for brokers and salespersons, as
promulgated by the Texas Real Estate Commission, what is the primary duty of real estate
agents?
Detailed Answer
b. Fidelity, the first duty under the Texas Real
Estate Commission’s Canons of Professional
Conduct, calls for the licensee to place the
interest of the principal or client above all
others’ interests, including their own.
7
Gertrude Goodheart always said that her two
best friends would inherit her property when
she died. Six months ago, she died without having gotten around to writing a will. She has no
living relatives. What will happen to her
property?
Detailed Answer
d. The Law of Descent and Distribution calls
for ownership to pass to the state when one
dies intestate with no eligible heirs identified
under the state’s Law of Intestate Succession.
8
A seller received an offer last evening and is
considering how to respond to it. While the
seller is still thinking about the first offer,
another offer is given to the listing agent. What
should the listing agent do?
Detailed Answer
a. The licensee must present all offers to the
seller immediately unless instructed otherwise in writing by the seller.
9
Which of the following people would need to
obtain a real estate license if they were involved
in a real estate activity?
Detailed Answer
d. The sale of land/lots is an act of brokerage
and requires that one have a license if he or
she is not the owner of the lot. The other
three answers are listed as people who do not
need a license as stated in the Texas Real
Estate License Act, Texas Occupations Code
1101.005.
10
When does an offer become a binding
contract?
Detailed Answer
a. An offer may be withdrawn by the offeror at
anytime prior to notification that the offer
has been accepted. The Statute of Frauds dictates that all offers affecting title to or interest in real estate be reduced to writing to be enforceable except a lease for one year or less.