15 free questions from the Cinna RE Texas real estate exam bank (151 in the app). Tap an answer to check it. The rationale opens right away.
Which Texas agency is responsible for licensing real estate sales agents and brokers and enforcing the Real Estate License Act?
Answer: B. The Texas Real Estate Commission (TREC)
TREC (the Texas Real Estate Commission) administers the Real Estate License Act, issues sales agent and broker licenses, promulgates contract forms, and handles complaints and disciplinary actions.
While acting as an intermediary, may a Texas broker disclose to the seller that the buyer is willing to pay more than the offered price without the buyer's permission?
Answer: D. No; the intermediary may not disclose such confidential information without written authorization
An intermediary must treat parties fairly and impartially and may not disclose that a party will pay more or accept less than offered, or reveal confidential information, without that party's written authorization.
Which Texas license holder is ultimately responsible for the brokerage's advertising, supervision of sponsored agents, and proper handling of trust funds?
Answer: B. The designated or sponsoring broker
The sponsoring broker is responsible for supervising sponsored agents and for compliance with advertising, trust-account, and recordkeeping requirements within the brokerage.
A buyer's earnest-money check bounces after the contract is executed. Regarding the broker's recordkeeping, the broker should:
Answer: B. Maintain accurate records reflecting the returned item and notify the appropriate parties
Brokers must keep accurate, complete trust and transaction records. A returned earnest-money item must be documented and the relevant parties informed, never concealed or fabricated.
Which of the following is the clearest example of a broker properly disbursing earnest money from the trust account?
Answer: B. Disbursing it at closing or per the contract and signed instructions of the parties
Earnest money may be disbursed only as authorized, typically at closing or pursuant to the contract terms and the parties' signed instructions, not for the broker's own benefit.
Which fund is used in Texas to reimburse consumers who obtain a final court judgment against a license holder for certain violations but cannot collect it?
Answer: A. The Real Estate Recovery Trust Account
The Real Estate Recovery Trust Account reimburses aggrieved consumers who win an eligible judgment against a license holder and are unable to collect, up to statutory limits.
A new sales agent must complete additional education during the first license period before renewing. What is this requirement commonly called?
Answer: A. Sales Agent Apprentice Education (SAE)
Newly licensed Texas sales agents must complete Sales Agent Apprentice Education (SAE) hours before their first renewal, in addition to the standard continuing education, to keep the license active.
In a typical TREC One to Four Family Residential Contract, when does the contract become binding (the effective date) for purposes of counting performance periods such as the option period?
Answer: C. When the last party to accept signs and that acceptance is communicated, and the contract is signed and dated by the broker/parties (the effective date)
The TREC contract is effective on the date the final party accepts (offer and acceptance complete) and the contract is fully executed; the effective date is filled in and is the date from which time periods, including the option period and other deadlines, are counted.
A Texas broker wants to represent both the buyer and the seller in the same transaction. Instead of traditional dual agency, what does Texas law authorize?
Answer: B. Intermediary status, which requires the written consent of both parties
Texas abolished traditional dual agency. A broker may act as an INTERMEDIARY between the parties, but only with the written consent of both the buyer and the seller, typically obtained in the listing and buyer-representation agreements.
Under TREC rules, when must a Texas license holder provide the statutory written statement on brokerage services (Information About Brokerage Services, IABS) to a prospective party?
Answer: B. At the first substantive communication about a specific property
Texas law requires a license holder to furnish the IABS notice to a party at the first substantive dialogue/communication with the party regarding a specific real property transaction, so the consumer understands representation options before relying on the agent.
Texas does NOT offer formal license reciprocity with other states. What does this mean for an out-of-state licensee who wants to become licensed in Texas?
Answer: D. They must meet Texas's education and examination requirements (though prior experience/education may reduce some requirements)
Texas has no reciprocity agreements. An out-of-state applicant must apply and meet Texas's qualifications, including passing the Texas portion of the exam; TREC may give credit for qualifying education and may waive the national exam portion in some cases, but Texas-specific requirements still apply.
A Texas sales agent wants to manage rental properties for owners, including leasing units and collecting rent for compensation. What is required?
Answer: A. The activity requires a real estate license, and the sales agent must be sponsored by a broker to perform it
In Texas, leasing and property management performed for others for compensation are activities that require a real estate license. A sales agent may perform them only while sponsored by an active broker, who is responsible for the agent's conduct.
Under Texas law governing residential security deposits, by when must a landlord generally refund the deposit (or provide an itemized list of deductions) after the tenant surrenders the premises and provides a forwarding address?
Answer: C. Within 30 days
Texas law generally requires the landlord to refund a residential security deposit, or provide a written itemization of deductions, within 30 days after the tenant surrenders the premises, provided the tenant has given a forwarding address.
Under the Texas intermediary structure, if a broker does NOT make appointments of associated license holders, how must the broker proceed?
Answer: B. The broker may not provide opinions or advice during negotiations to either party
If an intermediary does not make appointments, the broker may facilitate the transaction but may not give either party advice or opinions during negotiations. Appointing different associates allows each party to receive advice.
The TREC-promulgated Seller's Disclosure Notice requires a seller of residential property to disclose primarily what?
Answer: B. The seller's knowledge of the property's condition and known defects
Texas requires sellers of residential real property with not more than one dwelling unit to give the buyer a Seller's Disclosure Notice disclosing the seller's knowledge of the property's condition, including known defects and material facts.
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