Free TREC Education Questions and Answers — Questions and Answers
Question 1: Which of the following TREC forms does not include the phrase, "time is of the essence"?
- The Short Sale Addendum
- The Third Party Financing Addendum
- The 1-4 Family Resale Contract
- The Notice Regarding Coastal Area Property (Correct answer)
Correct answer: The Notice Regarding Coastal Area Property
The phrase "time is of the essence" is a legal term indicating that strict adherence to deadlines is critical and any delay could constitute a breach of contract. This phrase is commonly found in contracts and addenda where specific timelines are crucial, such as the Short Sale Addendum or the 1-4 Family Resale Contract. However, the Notice Regarding Coastal Area Property is an informational disclosure, not a contractual agreement with strict deadlines, and therefore does not include this phrase.
Question 2: A sales agent is hired to list the property of a deceased party who died testate. The license holder must:
- determine if the deceased committed suicide
- determine if the deceased had an administrator
- obtain the signatures of all heirs
- obtain the signature of the executor named in the will (Correct answer)
Correct answer: obtain the signature of the executor named in the will
When a property owner dies testate, meaning they left a valid will, the property is administered according to the terms of that will. The executor, who is named in the will and appointed by the court, has the legal authority to manage and sell the deceased's assets, including real estate. Therefore, a license holder must obtain the executor's signature to list and sell the property, as they are the legal representative of the estate.
Question 3: TREC can investigate the actions of a license holder at its own motion. Under what other circumstances can TREC investigate a license holder?
- If they have a written complaint no more than 5 years old
- If they have an oral complaint no more than 4 years old
- If they have a written, signed complaint no more than 4 years old (Correct answer)
- If they have a substantiated complaint
Correct answer: If they have a written, signed complaint no more than 4 years old
TREC can initiate an investigation into a licensee's actions either on its own motion or in response to a consumer complaint. For TREC to investigate based on a complaint, it must be submitted in writing, be signed by the complainant, and filed within four years of the date of the incident or discovery of the violation. This timeframe ensures that complaints are relatively current and actionable.
Question 4: Which of the following about TREC is FALSE?
- TREC has 9 members
- 6 TREC members are public and 3 TREC members are brokers (Correct answer)
- TREC has subpoena power
- TREC can advise with reference to its rules and the laws that govern license holders
Correct answer: 6 TREC members are public and 3 TREC members are brokers
The Texas Real Estate Commission (TREC) consists of nine members appointed by the Governor. The composition of the commission is specifically defined: six members must be licensed real estate brokers, and three members must be representatives of the public. This structure ensures a balance of industry expertise and public interest representation in the commission's decision-making.
Question 5: What is the criminal penalty for engaging in the real estate brokerage business in Texas without first becoming licensed by TREC?
- A fine of up to $5,000 per day
- Triple damages
- A fine of not more than $4,000 (Correct answer)
- Imprisonment for up to 2 years
Correct answer: A fine of not more than $4,000
Engaging in real estate brokerage activities in Texas without a valid license from TREC is a serious offense. This unauthorized practice is considered a Class A misdemeanor. The criminal penalty for such an offense includes a fine of not more than $4,000, and/or confinement in jail for up to one year.
Free TREC Education Questions and Answers
Which of the following TREC forms does not include the phrase, "time is of the essence"?