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Texas Real Estate Exam: STATE SECTION > Commission Duties and Powers > Flashcards

Flashcards in Commission Duties and Powers Deck (15)
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1
Q

When and why was TREC created?

A

1949

created to administer provisions of the License Act (TRELA).

2
Q

When was TRELA passed?

A

1939

3
Q

What authority does TREC have?

A

to govern license holders by making rules and regulations

subpoena books, records and witnesses

4
Q

What is the member breakdown of TREC

A

9 members

3 - public members
6 - brokers

all appointed by the govenor and senate approved

6yr terms

5
Q

Who writes the promulgated contract forms?

A

The Broker Lawyer Commitee

6
Q

What is the member breakdown of the Broker Lawyer Committee?

A

13 members

6 - brokers (TREC appointed)
6 - lawyers (State Bar appointed)
1 - public member (Govenor appointed)

7
Q

Where is the Advisory Committee located?

A

The Real Estate Center at Texas A & M University

8
Q

What is the member breakdown of the Advisory Committee?

A

10 members (Govenor Appointed)

6 - brokers (5yrs experience)

3 - public members

1 - ex-officio (reps TREC)

9
Q

How many years does an individual have from the effective date of a contract or the date of an incident to file a complaint with TREC regarding a license holder and how must complaint be presented?

A

4yrs

written and signed

10
Q

Who has the power to issue or revoke Real Estate Licenses?

A

TREC

11
Q

What is the charge and penalty for practicing real estate without a license?

A

Class A Misdemeanor

up to $4,000 fine

up to 1yr imprisonment

liable for civil penalties up to 3 times the amount of money received

TREC: $5,000/day for any person. License holder has 30days to pay penalty

12
Q

Why was the Real Estate Recovery Trust Account created?

A

to pay aggrieved persons who suffered a monetary loss due to unscrupulous acts of the license holders.

13
Q

According to the Real Estate Recovery Trust Account, how much can an aggrieved person who suffered a monetary loss due to acts of license holders receive?

A

up to three times the amount lost

14
Q

According to the Real Estate Recovery Trust Account, If at any time in the calendar year the account balance is below _______ the commission is authorized to assess each real estate broker and sales agent on renewal of his license during the following calendar year a fee of _______ , or a pro rata share of the amount necessary to bring the balance to _______.

A

$1,000,000

$10

$1,700,000

15
Q

According to the Real Estate Recovery Trust Account, what does TREC do when the balance is not below $1,000,000?

A

invest in Treasury Bills or Notes

or invest in the same manner as the Employees Retirement System of Texas

if account above $3.5 million, excess goes into the state’s General Fund.