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The Key To Passing The Texas Real Estate Exam Is Understanding The Topic Areas


Live Crash Course


Thursday's Key Points
Key Points are important bulletpoints that relate to state exam topics.

Commission Duties And Powers

The Texas Real Estate Commission (TREC) is an agency that regulates real estate activities and licenses real estate professionals in the state of Texas.

Licensing

Licensees are permitted to prepare and present real estate contracts and other related documents to facilitate transactions.

Standards Of Conduct

Real estate brokers who handle client funds are required to establish and maintain trust accounts, also known as escrow accounts or trust fund accounts.

Agency / Brokerage

If the broker dies, the broker's designated supervisor must promptly notify TREC in writing of the death and provide the Commission with the name, address, and telephone number of the person designated by the broker to act as supervisor during the period of time necessary to complete any unfinished business of the broker.

Contracts

If a seller retains any mineral interest in the property being sold, they must provide a written notice of that fact to the buyer at the time of the sale.

Special Topics

Any property that a spouse owned before the marriage is considered separate property. This includes assets, real estate, investments, and personal belongings.

Thursday's Questions

What happens to community property in the event of one spouse's death in a community property state


A.) It is distributed according to the deceased spouse's will
B.) It automatically becomes the property of the surviving spouse
C.) It is sold and the proceeds are divided equally among the surviving spouse and children
D.) It is subject to probate and a court decides its distribution


A
B
C
D

Special topics



What happens to community property in the event of one spouse's death in a community property state


Correct Answer:
It automatically becomes the property of the surviving spouse

In community property states, community property typically passes to the surviving spouse without the need for probate upon the death of one spouse.



Next Question →

During escrow seller Matt died. Buyer Bryan negotiated with Matt for 2 months to arrive at an agreement that really benefited both parties. Of the following, what best describes what would happen in this situation


A.) The contract is terminated and would be null and void
B.) The escrow would continue through Matts heirs
C.) The escrow would continue but only after an administrator has been selected by the court
D.) The escrow would need to be canceled by the buyer due to the seller not being able to execute


A
B
C
D

Agency / Brokerage



During escrow seller Matt died. Buyer Bryan negotiated with Matt for 2 months to arrive at an agreement that really benefited both parties. Of the following, what best describes what would happen in this situation


Correct Answer:
The contract is terminated and would be null and void

The contract is terminated. The deceased person's heirs or estate may choose to continue with the transaction, but they would need to enter into a new contract and go through the escrow process again. If the deceased person was the only party to the transaction, then the contract would be null and void.



Next Question →

Broker Jack has been using an interest bearing trust account. He clients are unaware of this as Jack considers this money part of his commissions. Of the following, what best describes this action


A.) TREC will take disciplinary action and suspend Jacks license
B.) Under TREC rules, Jack cannot keep this interest
C.) Any interest earned on trust funds must be deposited with the Texas Real Estate Research Center
D.) This is acceptable under TREC rules regarding trust accounts


A
B
C
D

Standards of conduct



Broker Jack has been using an interest bearing trust account. He clients are unaware of this as Jack considers this money part of his commissions. Of the following, what best describes this action


Correct Answer:
Under TREC rules, Jack cannot keep this interest

A trust fund bank account in Texas is allowed to be interest-bearing. However, unless otherwise provided for by an agreement signed by the owner of the funds, any interest earned on trust funds must be given to the owner of the funds.



Next Question →

Great Job!!!

There are two sides to the state exam:
Knowing the topics
Answering the questions


Our Salesperson Specific Exams will reinforce topics by utilizing over 2,000 questions & our Broker Specific Exams feature over 3,000 questions!

Crash Courses: Designed to help you understand the topics on the state exam.

Practice Exams: Reinforce topics and make it easier to recognize them in questions.



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