Principles of Real Estate Ch. 7

the Association of Real Estate License Law Officals--promotes uniform policies and standards in the fields of license law administration enforcement.

• -Texas Real Estate Commission (TREC)
• -nine; 3 members of the public who may have no affiliation with real estate brokerage, and 6 are real estate broker-members.
• -staggered terms of six years

governor

Owners dealing with their own property, trustees, executors, receivers, and others operating under court orders, public officials, and Texas attorneys at law.

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the state legislature and with the governor's signature.  It has been amended in almost every biennial session of the Texas Legislature; 2011

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A periodic review of each state agency, commission, and board to evaluate its purpose, efficiency and need.

• -official definitions of most terms used in the act
• -describes 11 core courses 
• -lists the exemptions from licensing requirements

• establishes the composition of the Texas Real Estate Commission, which oversees the administration of The Real Estate License Act.
• -requirements for commissioners, length of membership terms, grounds for removal, training.

• provides for the employment of personnel fro the day-to-day administration of the License Act.
• -1101.101(c); is the law that regulates real estate inspectors and establishes the educational and examination requirements for licensing of professional inspectors, real estate inspectors, and apprentice inspectors.

• outlines the duties of the Texas Real Estate Commission, among them to adopt and enforce rules necessary to administer the License Act and to establish standards of conduct and ethics for persons licensed under the act .  
• -TRELA Section 1101.152 lists the fees that can be charged by TREC, and Rule 535.101 specifies the amount for each fee.

the procedures for notifying the public about filing complaints. The statue of limitations for investigating a complaint is four years.

provides for the creation of the Texas Real Estate Broker-Lawyer Committee; outlines the duties of the committee for drafting and revising standardized contract forms to be used by licensees.

Accreditation and approval of real estate educational programs and courses of study

• License Requirements; lists the privileges and rules of obtaining a license, what a you must to in order to obtain and keep your real estate license.
• -criminal history of license applicant or renewal; submit fingerprints, criminal history check.
• -eligibility requirements for license
• -license renewal requirements
• -inactive license causes

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• examination; the applicant must satisfy the examination requirement within one year from the date the application is filed.
• -exam

license renewal requirements and procedures.  -time for renewal, fees, another background check

false, a person may not renew a license that has been expired for six or more months.  They would have to meet the original license requirements and retake the state exam.

H and J

requires a right-of-way agent to register with the Texas Real Estate Commission unless a person is licensed as a real estate broker or salesperson.

a person who sells, buys, leases, or transfers an easement or right-of way for another for compensation.

A right to use the land of another for a specific purpose, such as for a right-of-way or utilities. 

-there are several types of easements, but that is what it is.

the right or privilege, acquired through accepted usage or contract, to pass over a designated portion of the property of another.

• describes requirements for a broker's maintaining a fixed office address and mandates title notice and property disclosures.
• -defines the agency relationships that may exist  between brokers and buyers, sellers, landlords, or tenants.

Provides for a real estate recovery trust account.

• This fund is to be used to reimburse members of the public who have been financially injured or damaged by the actions of a real estate broker or salesperson, a certificate holder, or an employee or agent of the licensee.
• -established by a $10 deposit from each broker and salesperson licensee to reimburse aggrieved persons who suffer actual damages by reason of acts committed by a licensed.  Limits are $50,000 for claims arising out of the same transaction and $100,000 for claims against any one licensed.

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lists possible actions by a licensee that can result in the revocation or suspension of a broker's or salesperson's license or right-of-way agent's certificate of registration.

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10

60-90 days

complete the required SAE or MCE courses, and to ensure that TREC has a correct email address.

• -the National DO Not Call Registry
• -the CAN-SPAM Act,
• -the Junk Fax Prevention Act.

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False, a broker can only compensate if a person is licensed.

true; this Rule would apply to a broker's sharing his commission with a buyer or a seller in a transaction.

• address penalties for violating the provisions of the Real Estate License Act--both for licensees and nonlicensees. 
• -Subchapter O outlines the procedures for TREC to assess an administrative penalty against anyone who violates the License Act or a TREC rule, and that penalty may be as much as $5,000 for each day a violation occurred.  The commission may also suspend or revoke a license.
• -Subchapter P provides that an unlicensed person who receives a commission or other consideration for performing acts requiring a license is liable to the state for a civil penalty of not less than the amount of money received or more than three times the amount of money received. 
• -a violation of the License Act by an unlicensed person is a Class A misdemeanor and is fined up to $4,000 and/or imprisionment for up to one year.

Rule 535.191

addresses a real estate agent's liability regarding a variety of disclosure topics; AIDS, sales price in a competitive market analysis, and misrepresentation or concealment by a buyer, seller, or subagent.

• to protect the public from dishonest brokers, salespersons, and registrants
• -prescribe certain licensing and registration standards
• -maintain high standards in the real estate profession
• -protect licensed brokers from unfair or improper competition

• 12
• -4 of principles of real estate
• -2 law of agency
• -2 law of contracts
• -2 contracts, forms, and addendums
• -2 real estate finance

15

60

1949

• -auction; if performing an act of a broker or salesperson in addition to conducting the auction sale
• -sell
• -exchange
• -purchase
• -rent
• -assist in finding listings
• -collect rent; if for a single-family residential unit
• -serve as a hostess at an open house; if engaging in any activity for which a license is required
• -trade
• -lease
• -buy
• -locate renters
• -performing for someone else for a fee.

any person who or business entity that for another person and in expectation of receiving compensation performs any action listed in section 1101.002 (1).

Any person employed by or engaged by a licensed real estate broker to do any of the actions that a broker is licensed to perform.

• -a property owner buying and selling for himself
• -an owner and his regular employees who do not conduct a real estate brokerage business
• -an attorney-in-fact under a power of attorney
• -an attorney at law licensed in Texas
• -an escrow holder; receiver; trustee in bankruptcy; administrator; executor; person actin under order of court; trustee under trust agreement, deed of trust, or will, or the regular salaried employee thereof; or public officer or employee while performing duties as such
• -on-site manager of an apartment complex
• -sale of cemetery lots
• -transactions involving mining and mineral interests
• -a person who conducts a real estate auction
• -transactions involving leasing or managing a hotel or motel
• -a builder's employees selling structures erected by the owner

A broker shall immediately return the salesperson's license to the commission.  Notice of termination must be in writing-from broker or from salesperson.  It may be reactivated by filing a request for new broker sponsorship with TREC along with a transfer fee.

• -protect the public from dishonest or incompetent brokers or salespersons,
• -prescribe certain minimum standards and qualifications for licensing brokers and salespersons,
• -maintain high standards in the real estate profession, and 
• -protect licensed brokers and salespersons from unfair or improper competition

1949

• -owners dealing with their own property (licensees must disclosure they are a real estate agent even if they are selling their own house)
• -trustees, executors, receivers, and others operating court order;
• -public officials
• -Attorneys

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Salesperson                  Broker

• a. 18 yrs                       18yrs
• b. day of filing               same
• c.                                 four yrs
• d. 180 hrs                    900 hrs
• e.  yes                            yes
• f. $10                           $10

• -auction
• -sell
• -exchange
• -purchase
• -rent
• -assist in procuring prospects
• -assist in finding listings
• -collect rent; for single-fam unit
• -serve as a hostess at an open house
• -trade
• -lease
• -buy
• -locate renters
• ***performing from someone else for a fee; remember those who are exempt

A real estate broker includes any person or business entity that for another person and in expectation of receiving compensation performs any action listed in section 1101.002(1).

Any person employed by or engaged by a licensed real estate broker to do any of the actions that a broker is licensed to perform.

-A property owner buying and selling for himself

-An owner and his/her regular employee who do not conduct or appear to conduct a real estate brokerage business. 

-An attorney-in-fact under the power of attorney

-An attorney at law licensed in Texas

-An escrow holder; receiver; trustee in bankruptcy; administrator; executor; person acting under order of court; trustee under trust agreement, deed of trust, or will or the regular salaried employee thereof; or public officer or employee while performing duties as such.

-On-site manager of apartment complex

-Sale of cemetery lots

-Transactions involving mining and mineral interests

-A person who conducts a real estate auction

-Transaction involving leasing or managing a hotel or motel

-A builder's employee selling structures erected by the owner

1. Accepting an undisclosed rebate or profit on an expenditure for a principal

2. Acting in the dual capacity of broker and an undisclosed principal in any transaction

3. Pursing a continued and flagrant course of misrepresentation 

4. Making false promises

5. Failing to make clear to all parties for whom the licensee is acting

6. Failing to remit or account for funds belonging to others

7. Using misleading advertising or an ad without the broker's name

8. Failing to use a contract form required by the commission

9. Procuring a license by fraud

10. Willfully disregarding or violating any provisions of the act

11. Paying a commission to any unlicensed person in violation of the act

12. Inducing a party to break a sales contract or lease to substitute a new one

13. Being convicted of a felony

14. Displaying a For Sale sign without the seller's proper written authority

15. Knowingly preparing an inaccurate statement or invoice

16. Dishonest dealings, bad faith, untrustworthiness, or incompetency in conduct

17. Employing unlicensed salesperson

18. Discriminating on the basis of race, color, religion, sex, disability, familial status, or national origin

19. Soliciting, selling, or offering for sale by means of a deceptive practice

20. Commingling funds of others with his/her own

21. Failing to deposit the money of others in an escrow or trustee account within a reasonable time

22. Failing to advise a purchaser in writing to have the abstract examined or obtain a title insurance policy

23. Accepting compensation from someone other than the agent's broker

24. Violating the intermediary statute

Class A misdemeanor; Punishable by a fine up to $4,000 or imprisonment for up to one year or both

9 members appointed by the governor with the advice and consent  of the senate; staggered terms  of six year.

Maintain a definite place of business in this state; section 1101.553 requires that a residential rental locator display the locator's license

The broker shall immediately return the salesperson's license to the commission. Notice of termination of sponsorship must be in writing--from the broker or from the salesperson. It may be reactivated by filing a request for new broker sponsorship with TREC along with a transfer fee.

For consideration, reward, or monetary benefit, a licensee drew a deed, note, deed of trust, or other written instrument that may transfer or affect title of real estate; does not include completion of promulgated contract forms.

Is established by a $10 deposit from each broker and salesperson licensee to reimburse aggrieved persons who suffer actual damages by reason of acts committed by a licensed broker or salesperson, provided recovery is ordered by a court of competent jurisdiction. Limits are $50,000 for claims arising out of the same transaction and $100,000 for claims against any one licensee.

-When recovery is ordered by a court against a licensed broker or salesperson and the licensee cannot pay the full amount of the judgment ordered by the court, the aggrieved person may apply to the court in which the judgment was entered for an order directing payment out of the real estate recovery trust account of the amount unpaid on the judgment.

The Broker-Lawyer Committee has 13 members: 6 appointed by the Texas Real Estate Commission, 6 appointed by the president of the State Bar of Texas, and one public member appointed by the governor. The primary function of the committee is to prepare contract forms, including special addenda, which are presented to the Commission for possible approval or promulgation.

As a condition for the first renewal of a salesperson license (SAE requirement), the applicant shall furnish proof of completing at least 6 additional semester hours (60 classroom hours) of real estate core during the two-year initial license period, effective on or after September 1, 2012. Real estate core requirements for SAE are 18 total hours, including the prelicense core requirements. 

-Persons who have completed SAE requirements must furnish proof of completing at least 15 classroom hours of Mandatory Continuing Education (MCE) during the two-year period preceding license renewal. MCE hours must include TREC-approved non-elective 3-hour legal update and 3-hour legal ethics courses. In some instances, exemptions from MCE requirements apply to persons holding a broker's license for at least ten years as of September 1, 1991. For licenses issued or renewed on or after September 1, 2012, a broker who sponsors a salesperson or a broker or salesperson who supervises another licensee must take at least 6 hours of broker responsibility education each two years, which may be used to meet MCE requirements.