Texas Real Estate Broker

Under TREC rules, how long must a designated broker retain transaction records after the closing or termination of a real estate transaction?

• ATwo years
• BFour years
• CFive years
• DSeven years

A Texas broker discovers that a sponsored sales agent failed to provide the Information About Brokerage Services (IABS) form at first substantive contact. What is the broker's primary obligation?

• AImmediately terminate the agent's sponsorship
• BFile a complaint with TREC against the agent
• CEnsure compliance and take corrective action, as the broker bears supervisory responsibil…
• DDo nothing, since IABS compliance is solely the agent's responsibility

Under Texas law, which type of trust account must a broker maintain for holding earnest money deposits?

• AA personal savings account at any financial institution
• BA federally insured demand deposit account (checking) at a recognized depository
• CA money market account with a brokerage firm
• DAn escrow account with the title company handling the closing

A broker receives an earnest money check from a buyer. Under TREC rules, by when must the broker deposit the check into the trust account?

• ABy the end of the next business day
• BWithin two business days of receipt
• CBy the close of business on the second working day after execution of the contract
• DWithin five business days of acceptance

Which of the following is a TREC promulgated form that a Texas broker must ensure agents use for the sale of a residential property with 1-4 units?

• ATREC No. 20-17, One to Four Family Residential Contract (Resale)
• BTAR Residential Lease Agreement
• CHUD-1 Settlement Statement
• DTREC No. 30-15, Residential Condominium Contract

A broker's sponsored agent is acting as an intermediary in a transaction. Under Texas law, what must the broker do to appoint licensees to advise each party?

• AThe broker may appoint without any written consent
• BThe broker must obtain written consent from both parties to appoint licensees who may pro…
• COnly the listing agent can be appointed as an intermediary
• DThe broker must obtain TREC's approval before appointing licensees

What is the minimum number of years of active experience as a licensed sales agent or broker that Texas requires before an individual can apply for a broker license?

• ATwo years within the preceding five years
• BThree years within the preceding five years
• CFour years within the preceding five years
• DFive years of total experience

How many total hours of qualifying education must a Texas broker applicant complete, including the sales agent prerequisite courses?

• A180 hours (6 courses)
• B210 hours (7 courses)
• C270 hours (9 courses: 180 sales agent + 90 broker)
• D360 hours (12 courses)

A Texas broker discovers that a sponsored agent has been advertising properties without including the broker's name. What TREC rule has been violated?

• AThe agent's advertisement must only include their own name and license number
• BAll advertising by a sponsored agent must include the name of the broker or the brokerage…
• CAgents are free to advertise in their own name as long as they have a valid license
• DOnly the broker can place advertisements for listed properties

Under TREC rules, when a broker terminates sponsorship of a sales agent, within what timeframe must the broker notify TREC?

• AImmediately upon termination
• BWithin 3 days of termination
• CWithin 10 days of termination
• DWithin 30 days of termination

A Texas broker operates from a main office and wants to open a branch office. What must the broker do under TREC regulations?

• ASimply begin operating from the new location
• BRegister the branch office with TREC and designate a licensed supervisor
• CTransfer the broker license to the new location
• DObtain a separate broker license for each branch office

What is the maximum amount a broker may keep in a trust account for personal funds to cover bank service charges?

• ANo personal funds are allowed in a trust account
• BUp to $50
• CA reasonable amount sufficient to cover bank service charges, fees, and minimum balance r…
• DUp to $1,000

Under Texas community property law, if a married couple is selling their homestead, whose signature(s) are required on the deed?

• AOnly the spouse whose name is on the title
• BOnly the spouse who is the primary breadwinner
• CBoth spouses must sign, regardless of whose name is on the title
• DEither spouse can sign on behalf of both under a general power of attorney

A broker manages trust funds for multiple transactions. During a TREC audit, the auditor finds that the total trust account balance is $5,000 less than the sum of all individual client balances. What violation has likely occurred?

• ACommingling
• BConversion
• CMisrepresentation
• DNegligent supervision

Under TRELA, which of the following acts would constitute the unauthorized practice of law by a real estate broker?

• ACompleting a TREC promulgated contract form
• BDrafting a custom addendum that modifies the terms of a TREC promulgated contract
• CExplaining the general provisions of a TREC promulgated form to a client
• DFilling in the blanks of a standard TREC promulgated form per the parties' agreement

What is the current Texas homestead exemption amount for school district property taxes?

• A$40,000
• B$60,000
• C$100,000
• D$140,000

A Texas broker wants to establish an independent contractor relationship with a sales agent rather than an employer-employee relationship. Which of the following is NOT a requirement for the independent contractor classification?

• AA written agreement specifying the agent is an independent contractor
• BThe agent's income must be based on production rather than hours worked
• CThe broker must provide a private office and all marketing materials to the agent
• DThe agent must hold an active real estate license

Under the Texas Deceptive Trade Practices Act (DTPA), what type of damages can a consumer recover in a real estate transaction where a broker knowingly engaged in deceptive practices?

• AActual damages only
• BActual damages plus up to two times the actual damages
• CActual damages plus up to three times the actual damages (treble damages)
• DOnly the amount of the commission paid

A broker's agent receives a verbal offer from a buyer. Under TREC rules, what is the broker's responsibility?

• AThe broker may refuse to present verbal offers
• BThe broker must present all offers, including verbal ones, to the seller promptly
• CThe broker may only present written offers using TREC promulgated forms
• DThe broker should advise the buyer to put the offer in writing before presenting it

What is the option period in a TREC residential contract, and who pays for it?

• AA 30-day inspection period paid for by the seller
• BA negotiated time period during which the buyer has the unrestricted right to terminate,…
• CA mandatory 10-day due diligence period with no additional cost
• DA contingency period tied to the buyer's loan approval

A Texas broker is responsible for supervising 15 sales agents across two offices. One agent at the branch office has been practicing real estate with an expired license for two months. Who faces TREC disciplinary action?

• AOnly the agent, since the agent is responsible for their own license
• BOnly the broker at the branch office
• CBoth the agent and the designated broker, who has a duty to ensure all agents maintain ac…
• DTREC cannot discipline either party for an expired license

Under Texas law, which document must a real estate broker provide to a buyer or tenant at the first substantive dialogue about a specific property?

• ASeller's Disclosure Notice
• BInformation About Brokerage Services (IABS) form
• CLead-Based Paint Disclosure
• DSurvey affidavit

A buyer wants to waive the option period in a TREC contract. As the broker, what should you advise?

• AEncourage the buyer to waive it to strengthen the offer
• BExplain that the option period provides the unrestricted right to terminate and waiving i…
• CInform the buyer that the option period cannot be waived
• DTell the buyer that inspections can still be done after closing

Under TREC rules, can a broker pay a commission directly to another broker's sponsored sales agent?

• AYes, as long as both parties agree in writing
• BYes, if the sales agent has been licensed for more than two years
• CNo, commissions must be paid through the agent's sponsoring broker
• DNo, unless the agent is an independent contractor