Notesale: Turn your study into money

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TEXAS REAL ESTATE EXAM
AGENCY/BROKERAGE
Customer/Third Party- only owe Fairness, Honesty, Disclosure
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4 TYPES OF LISTING AGREEMENTS
1
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2
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3
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4
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Remember The Acronym- O
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D
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A
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L = Loyalty
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C = Confidentiality
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R = Reasonable Care and Due Diligence
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Buyer tenant rep agreement/listing agreement
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Intermediary Relationship notice
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Intermediary with appointment- One Broker and Two Agents, one agent Represents the
Buyer & One Agent Represent the seller, Can Give Advice & Opinions to Their Clients
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Formatted

WAYS TO TERMINATE AGENCY
1
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3
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5
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You Close the Transaction whether it’s a buyer or seller deal
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Destruction of Property by Natural causes (Hurricane, Fire, Tornado, Earthquake)
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Things to Remember: Must disclose Rep upon first contact, Broker Owns everything, an
unlicensed Assistant CANNOT host an open house or show a property, nor can they discuss any
details about the property
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TREC- Formed in 1949- to enforce TRELA and to protect the public
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TREC has subpoena power and can get the attorney general involved to get whatever
they ask for (NEVER IGNORE A REQUEST FROM TREC)
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Handling Of Complaints
1
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2
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All complaints must be in writing and signed
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Complaint History of a licensed agent is always available at the TREC website
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Hearing And Appeals – TREC can issue or revoke or suspend a license, a hearing to
revoke or suspend a license is held in Austin Tx, If TREC revokes Or Suspend Your License
You can appeal to the district court in your county where you live
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00 per day against licensed or unlicensed individuals
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Texas Penal Code- Up to $4,000
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” They have been created to reimburse consumers for out-ofpocket damages caused by license holders when the license holders cannot pay for those
damages
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$10
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If Balance falls below One Million Dollars TREC will bring that balance back up to 1
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00 or however much is necessary as they
always want to have 1
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If Balance is above 3
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5 million by investing the excess in the general fund of Texas
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ACTIVITIES REQUIRING A LICENSE
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Attorneys Licensed in other states or Texas Attorneys wanting to Participate in a
commission split
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Auctioneers doing anything more than calling the auction
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Real Estate Sales Agents and Brokers
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A property manager for single family residence if in charge of collecting rent
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A Real Estate Brokerage Is only required to have error and omission insurance if the
designated agent owns less than 10% equity in the company, E & O insurance must
show at least $1,000,000 policy per occurrence
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Trustees (Foreclosure sales), guardians, Receivers, Sheriffs
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Apartment Managers
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FSBO (For sale by owner)
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Hotel And Motel employees
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Mobile Home Salesperson
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An attorney in fact (power of attorney)
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If you are married and acquire a property after you are married it is owned as
community property (both Spouses)
Community property rights can be waived by written agreement
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Homestead Protection and Tax Exemptions
Homestead is a statutory estate in Tx and protects against a forced sale from creditors apart
from the following- Mechanics liens, mortgage liens, property taxes, Hao/Poa
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An owner has 2 years to redeem their property if it was foreclosed on due to unpaid
property taxes
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Only one homestead is allowed per family or person
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If it’s over 200 acres the owner can say which 200 acres are to be used for
the homestead and they do not have to be connected in this case
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This reduces the
amount of taxes paid and you must file the homestead exemption with the tax appraisal
office for the county in which the property sits by January 1st of the first year of
ownership, if you forget to do so you can back file for the previous 2 years of your
ownership of your property
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The #1 lawsuit we see in Real Estate
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Comes with triple damages and mental anguish
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Wills And Estates

Probate- The legal Proceeding to distribute Property from the deceased
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Intestate- Died without a will
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(They have what is called Title by Devise on any Real Property They Inherit
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Landlord-Tenant Issues
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Landlords must account for security deposit within 30 days after the tenant leaves
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Things a landlord must provide a tenant: new locks no later than 7 days of a tenant
taking possession, keyless deadbolts and smoke alarms must be working and present
upon tenant taking possession
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Deed of trust (judicial foreclosure sale)-home equity loan
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Short sale-you owe more than what you can sell your house for and does require bank
approval
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It is important that your buyer read through the hoa documents prior to
putting on offer in on the property
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Hoa’s in Texas cannot ban anyone from flying the U
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S armed forces flags
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They cannot ban displays of religious symbols or political signs
TREC does not have jurisdiction over Hoa’s or association management
companies
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each- 180 hrs
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Apply to TREC with/without a sponsoring broker
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Obtain Fingerprints
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Cannot be an Illegal Alien
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To be a broker must have 900 hrs
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Exam

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80 questions for the national and 30 on the state
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Continuing Education

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Sales apprentice education (SAE) required for first time renewal
If you are renewing for the first time active or inactive you must have a total of 270
(including 180) qualifying Real Estate course Hrs
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of TREC legal update 1 and 4 hrs
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of contracts related courses and 7
hrs
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If you have been made a supervisor by your brokerage for 3 consecutive months or
more (you have 30 days after delegation to let TREC know) you need to take 6 hrs
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Submit Qualifying course completion documents to TREC at least 10 days prior to
renewing your license
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You ay not defer sae requirements your license will not be renewed until you complete
the required education
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If you do not complete the CE more than 60 days after license expiration you will be
subject to additional late fee of $250
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If a broker no longer wishes to sponsor a sales agent the broker must notify the agent
and return the license to TREC, the sales agents license will go inactive status until
another broker agrees to sponsor him/her
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STANDARDS AND CONDUCT
A Real Estate broker or salesperson while acting as an agent for another is a fiduciary, special
obligations are imposed when such fiduciary relationships are created, they demand:
1
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2
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3
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Remember O
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D
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A
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Integrity
A Real Estate Broker or Salesperson has a special obligation to exercise integrity in the
discharge of the license holders’ responsibilities, including employment of prudence and
caution to avoid misrepresentation in any wise by acts of commission or omission/honesty
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The license holder must:

1
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2
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3
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4
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Discriminatory Practices
Protected classes: Race, Color, Religion, Sex, National origin, Ancestry, Familial Status,
Disability, Aids, HIV
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Sales Agents receiving Commission Directly from Selling, Leasing, Negotiating,
Appraising, or Auctioning Real Estate Rather than it being paid to broker
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Selling Real Estate by lottery
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Not Advising a purchaser in writing to get an attorney’s opinion of title on the abstract
or to obtain title insurance
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Acting in dual capacity and undisclosed (Must disclose if he is representing
himself/spouse/parents/children)
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Advertising without brokers information
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Not furnishing copies of a document to your client upon demand
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Disbursing money deposited into a trust account before the transaction has been
completed or terminated
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If not notifying TREC within 30 days of the above statement
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Unauthorized Practice of Law
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Two-day TREC rule on opening a trust account-Business Day
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Paragraph 5 of the sales contract
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A broker can pay a commission to another broker
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A licensee can give a referral fee as a gift up to $50
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If a gift
card is given it cannot be one where cash can be pulled out
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Two exemptions to using a promulgated form
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An attorney prepares a form
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A seller has a certain form to use
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1
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2
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3
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4
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5
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6
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Remember paragraphs 7, 11, 23
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3a plus 3b equals 3c
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Paragraph 4 has to do with leases
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Existing survey if seller has one can be used if seller has made no changes to the
property, it’s up to mortgage /title company survey will Be used also it needs to be
attached to a t-47 affidavit
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Paragraph 6 a box 2 is if the buyer is going to pay for a new survey
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Paragraph 4 a box 1 is if the seller is going to pay for a new survey
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Paragraph 18- escrow
Paragraph 18 sec A- escrow agent is a third party and is not a party to this contract
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Paragraph 18 sec C-Demand-upon termination of this contract either party or the escrow agent
may send a release of earnest money to each party, has 15 days to hear from party
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Paragraph 21, where buyer and seller info goes
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THINGS TO REMEMBER
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Do not study the night before or the day of your exam
Get at lease 8 hours of sleep before your exam
Always schedule your exam for early mornings as that’s when your brain is at peak
performance
• Be sure to eat a nutritious meal the day before and DO NOT skip breakfast
YOU GOT THIS YOU WILL ACE THIS EXAM AND BE ON YOUR WAY TO A DREAM
CAREER!!!!!!!!



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