RE Promulgated Forms Ch.2 Laws Rules and Regulations

Home > Preview

The flashcards below were created by user Blue2xa88 on FreezingBlue Flashcards.


  1. The purpose of TRELA is what?
    to protect the public through regulation of licensed real estate brokerage practitioners, real estate inspectors, residential service companies, and entities offering timeshare interests.
  2. Texas Real Estate Commission is a ____ member commission appointed by the ___________ with the advice and consent of the ________.
    • 9, governor, senate
    • -six-year terms, six members must be active in real estate as full-time brokers for five years, three members must not be licensed by the commission and have no financial interest in real estate, except as consumers.
  3. The commission may not prohibit a license holder from using for sale, exchange, option, or lease of an interest in real property a contract form that is:
    • 1. prepared by the property owner; or
    • 2. prepared by an attorney and required by the property owner.
  4. What are the first things you should do when a customer inquires about a property?
    • -ask if they are working with another realtor
    • -ask if they are pre-qualified
    • -have them sign/initial the Information About Brokerage Services Form
  5. What is the Information About Brokerage Services form?

    When should this form be given?
    • -is a form that just gives the new client or customer an understanding of who is working for who; basic info about what a broker is, an agent, and an intermediary.
    • -MUST be given at the first face-to-face meeting/or signed online; REQUIRED
  6. The Information About Brokerage Services is an employment contract.
    • false; is NOT an employment contract; just shows the client or customer who is representing who/them; and is just a basic info sheet of terms
    • -You must explain this sheet to them
    • ****CARRY a couple with you; or have dockeysign
  7. Where on a promulgated form is the date of the most recent update?
    upper right corner
  8. What is an IABS form?
    Information About Brokerage Service forms
  9. The IABS form must be given to the prospect at the first substantive discussion.  What is a substantive discussion?
    the first discussion at when substantive info about a particular property or a prospect's ability to buy or lease occurs.
  10. Broker ATL is at top, you have a seller wanting to sell a house, and you have a listing agent under Brokerage ATL. The listing agent has the seller sign a listing agreement. So now the listing agent and Brokerage ATL represent the sellers.

    So now a buyer comes up who is interest in the sellers home and the buyer calls the listing agent directly. 

    Listing agent asks, how soon are you needing to get into the home, do you need a lender, are you prequalified, are you workin with another agent??? etc.

    If they are not being represented by a real estate agent, the listing agent explains representation, lets them know that they do represent the seller but can work with them as a customer.

    Is this an Intermediary relationship?
    no
  11. Broker ATL is at top, you have a seller wanting to sell a house, and you have a listing agent under Brokerage ATL. The listing agent has the seller sign a listing agreement. So now the listing agent and Brokerage ATL represent the sellers.So now a buyer comes up who is interest in the sellers home and the buyer calls the listing agent directly. Listing agent asks, how soon are you needing to get into the home, do you need a lender, are you prequalified, are you workin with another agent??? etc.If they are not being represented by a real estate agent, the listing agent explains representation, lets them know that they do represent the seller but can work with them as a customer.

    When the agent sees that a buyer is interested, they say Hey you need representation, let me have you sign a buyers representation form. 

    Is this a good idea?
    • no, you are throwing the seller under the bus; you agreed to represent the sellers best interest, and now it is conflicted with the buyers best interest.
    • -you should explain agency to the buyer and who you are representing and that they need to have their own representation; can be someone from the same brokerage or from a different brokerage
    • -Will you possibly lose a deal, yes, but it is the right thing to do.

    -Explain to them that you can help them as a customer.

    -IN THE BEST CASE: the buyer doesn't need representation, and just wants to go through the deal not being represented, and they just want your help to buy the house. You/broker get all commission.
  12. Broker ATL is at top, you have a seller wanting to sell a house, and you have a listing agent under Brokerage ATL. The listing agent has the seller sign a listing agreement. So now the listing agent and Brokerage ATL represent the sellers.

    So now a buyer comes up who is interest in the sellers home and the buyer calls ATL Brokerage and gets a buyers agent to represent them (buyers agent asks: how soon are you needing to get into the home, do you need a lender, are you prequalified, are you workin with another agent??? etc.)

    Buyer agent also says: Before I can take you out to see any properties, its our policy to meet and have a buyer's orientation. And have them sign a buyers representation form.

    So now ATL Brokerage is representing both the buyer and seller. The buyer makes an offer on the seller's home. Is this Ok for ALT Brokerage to do? Is ATL Brokerage an intermediary?
    Yes, perfectly ok to do; ATL Brokerage is the intermediary.

    Called Intermediary With Appointments
  13. Broker ATL is at top, you have a seller wanting to sell a house, and you have a listing agent under Brokerage ATL. The listing agent has the seller sign a listing agreement. So now the listing agent and Brokerage ATL represent the sellers.

    So now a buyer comes up who is interest in the sellers home and the buyer calls the listing agent directly. Listing agent asks, how soon are you needing to get into the home, do you need a lender, are you prequalified, are you workin with another agent??? etc.

    If they are not being represented by a real estate agent, the listing agent explains representation, lets them know that they do represent the seller but can work with them as a customer.

    The listing agent shows them the house. The buyers say the house is ok, but they really like the listing agent and want the listing agent to represent them in finding a house. 

    Is this ok to do?  What is the buyers turn around and say that they do what to buy the sellers house, can the agent do both, become an intermediary for both?
    Yes it is ok to do, the agent needs to tell them that they work as exclusive representation only, and the agent would have them come in and go over a buyers representation.  So now the listing agent now becomes a buyers agent too. 

    -If the buyers turn around and say that they really like the house that the agent represents. THIS IS INTERMEDIARY AND OK TO DO. Called Intermediary WithOut Appointments. 

    Applies to leases to; all of these senios
  14. When negotiating contracts binding the sale, exchange, option, lease or rental of any interest in real property, a real estate licensee shall use only those contract forms promulgated by the Texas Real Estate Commission for that kind of transaction. What are the exceptions to this rule?
    -transactions in with the licensee is functioning as a principal and not an agent.

    -transactions in which an agency of the US government requires a different form to be used.

    -transactions for which a contract form has been prepared by a principal to the transaction or prepared by an attorney and required by a principal to the transaction.

    -transactions for which no standard contract form has been promulgated by  the commission, and the licensee uses a form prepared by an attorney at law licensed by this state and approved by the attorney for the particular kind of transaction involved or prepared by the Texas Real Estate Broker-Lawyer Committee and made available for trial use by licensees with the consent of the commission.
  15. A licensee can give opinions concerning the status or validity of title to real estate.
    false; leave it up to the title company or lawyer

    ****A licensee can give facts about a titles status. But not opinions
  16. A licensee may not attempt to prevent or in any manner discourage any principal to a real estate transaction from employing a lawyer.
    true
  17. A licensee may not draw or prepare documents fixing and defining the legal rights of the principals to a real estate transaction.
    true
  18. In negotiating real estate transactions, the licensee may fill in forms for such transactions, using exclusively forms which have approved and promulgated  by the commission or such forms as are otherwise permitted by these rules.
    true
  19. A licensee may not add to a promulgated contract form factual statements or business details for which a contract addendum, lease or other form has been promulgated by the commission for mandatory use.
    true
  20. If a licensee notices legal issues with a transaction, a licensee can advise the principals to consult a lawyer of the principal's choice before executing.
    true
  21. A licensee may not employ, directly or indirectly, a lawyer nor pay for the services of a lawyer to represent any principal to a real estate transaction in which the licensee is acting as an agent.
    true; The licensee, however, may employ and pay for the services of a lawyer to represent only the licensee in a real transaction, including preparation of the contract, agreement, or other legal instruments to be executed by the principals to the transactions.
  22. A licensee shall advise the principals that the instrument they are about to execute is binding on them.
    true
  23. Licensees who choose to become REALTORS subscribe to a REALTORS Code of Ethics that demands...
    a very high level of professional conduct.
  24. The TRELA clearly establishes that it is illegal for the licensee to draw a deed, note, deed of trust, will or other written instrument that transfers or may transfer an interest in or title to real property.
    true
  25. A licensee can complete a contract form that may bind the transaction as long as the forms that are being used...
    • have been prepared by or are required by the property owner or
    • have been provided by the commission, prepared by an attorney licensed by Texas and approved by the attorney for a particular type of transaction.
  26. The licensee is free to explain to the principals the meaning of the factual statements or business details contained in the contracts in the contracts as long as the licensee...
    does not offer or give legal advice.
  27. When adding things to Special Provisions, licensees must take care that they do not...
    cross the line and say things that change parties' legal rights.

    For Example: saying "this contract is contingent upon a satisfactory appraisal inspection" changes the buyer's rights under the contract and may be the unauthorized practice of law.
  28. Licensees that add things to special provisions that are already in the TREC addendum is a common error.
    true
  29. What is the Broker-Lawyer Committee? How many members? What do they do?
    • works under the TRELA
    • composed of six Real Estate Commission appointees (licensed brokers) and six lawyers, appointed by the president of the State Bar of Texas, and one public member, appointed by the governor; staggered six-year terms.
    • -drafts and revises contract forms for use by real estate licensees; but they do NOT promulgate or publish forms, only TREC does.
  30. Promulgated forms change regularly.
    true; visit TREC's website  for info about current forms, including the date and current version number.
  31. Earlier versions of promulgated forms may be used.
    false; it could be considered practice of law.
  32. What is the version number on a promulgated form? Where is it located?
    • located on the bottom right of each page of the form
    • -identifies the form in case papers get mixed up
    • -pay attention to the numbers, some may refer to the number instead of the title of the form; EX; 20-12 instead of One to Four Family Residential Contract.
  33. The licensee must give a buyer written advice to have the abstract covering the property examined by an attorney of the buyer's selction or to obtain an owner's title insurance policy prior to closing.
    true; failure to give this written advice may result in disciplinary action by the TREC.
  34. All offers should be in writing and presented to the property owner...
    as quickly as is reasonably practical.
  35. A __________ is an act that damage another individual and gives rise to legal action.
    tort; ex; a property owner may consider the licensee's failure to present an offer in a timely manner a tortious interference with the licensee's ability to sell the property.
  36. When an offer is unacceptable to the property owner, the owner can ignore it, but the best thing to do is...
    give written notice that the offer is unacceptable, thank the offeror, and invite the offeror to submitt another offer with more likeable terms.

    • **A REALTOR and his/her client might use the Texas Association of REALTORS (TAR) Seller's Invitation to Buyer to Submit New Offer form, available to TAR members.
    • Licensees who are no members of TAR can create a letter to convey the message to the offeror.
  37. An offer or counteroffer remains open until accepted, rejected, or withdrawn.
    true; Ex; if the seller has countered one offer and then a better offer comes in, the seller must be careful to withdraw his counteroffer to the first buyer before making a counteroffer to the second buyer.
  38. A potential purchaser may withdraw an offer to purchase a property in writing anytime before the potential purchaser is notified of the offer's acceptance.
    true
  39. A licensee is required to convey to the principal all known information which would affect the principal's decision on whether or not to accept or reject offers.
    true
  40. The licensee has no duty to submit offers to the principal after the principal has accepted an offer.
    • true; however, the seller may want to continue to try  to negotiate a back-up offer. 
    • **Be certain you know the seller's wishes going forward.
  41. The listing agent can share info about one buyer's offer with another buyer.
    false; not suppose to.
  42. If a seller rejects an offer the listing agent should have the seller to do what?
    write rejected on the offer and sign it. This gives the other agent and the buyer proof that the offer was presented.
  43. The seller has the legal duty to respond to all offers and to respond to the offers in a particular order on which they were sent.
    false; the seller has no legal duty to respond to any offer and is free to consider any and all offers until an offer is accepted. The seller has no duty to respond to the offers in any particular order.
  44. The final date of acceptance is the date on which the contract becomes binding between the parties. The promulgated contract form instructs the agent acting for the broker to fill in this final date as the ________ date.
    effective date
  45. Even though the promulgated form states "BROKER: FILL IN THE DATE OF FINAL ACCEPTANCE" affiliated licensees are usually authorized by the broker to complete the effective date.
    true
  46. What following four things must take place in order for the contract to become binding and effective?
    • -be in writing
    • -buyer and seller sign final contract and initial all changes
    • -acceptance is complete, without doubt
    • -Last party to accept communicates (can be verbal) that written acceptance has taken place to the other party (or other party's agent).
  47. When the contract is complete and signed, the listing agent should do what in relation to the other party?
    call immediately to tell them the contract is completed and should follow up with a written copy.
  48. The property is still for sale and any other offers must be presented, until the contract is finalized.
    true; there is no "almost sold"
  49. Which group administers the TRELA
    TREC
  50. The Broker-Lawyer Committee drafts and edits forms, but does not approve or promulgate forms.
    true
  51. Licensee advises the buyer, in writing, that a title policy should be obtained as well as survey, is practicing of law.
    false; is required to do by the licensee
  52. Licensee adds factual statements and business details to a promulgated form as requested by the client is a practice of law.
    false
  53. If the seller has already sent a counteroffer to a prospective buyer and then receives another offer that is even better, the seller should do what?
    should withdraw the first counter before answering the new offer.
  54. What should a licensee do when there are unusual matters involved in a transaction?
    advise the client to seek legal advice before signing anything

Card Set Information

Author:
Blue2xa88
ID:
323006
Filename:
RE Promulgated Forms Ch.2 Laws Rules and Regulations
Updated:
2016-09-08 22:18:53
Tags:
real estate forms laws
Folders:

Description:
real estate forms laws and regulations
Show Answers:

Home > Flashcards > Print Preview