UNIT 4: JOHN MATHIS CONTRACTS
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1 TEXAS INTERACTIVE STUDY GROUP 1 UNIT 4: JOHN MATHIS CONTRACTS
2 Study Group Information 2 Information regarding the Study Group may be found at: At this location you will find: Calendar of discussion topics Links to discussion questions
3 Notes for Tonight Chat has now been switched to a Moderated Mode. 3 Presenter (John Mathis) will still see your Chat; however, the other students will no longer see Your chat unless either instructor sends your chat to the classroom. This will help preserve the anonymity of your answers. Even so, do not put anything into the chat that you would not want everyone to see.
4 Contact Information 4 Contact Information releadinstructortx@brightwood.edu If you would like to discuss something on the phone, please send your phone number in the and the best times to reach you.
5 Unit 4: Commission Duties and Powers TOPICS TO BE DISCUSSED: Commission Duties and Powers 5 Activities Requiring a License Licensing Process
6 Question How many members does TREC have? 6 A. Three B. Six C. Nine D. Thirteen
7 Question How many broker members does TREC have? 7 A. Three B. Six C. Nine D. Thirteen
8 Question How many public members does TREC have? 8 A. Three B. Six C. Nine D. Thirteen
9 Question The members of TREC are appointed by the 9 A. governor. B. senate with the advice and consent of the governor. C. governor with the advice and consent of the senate. D. Texas Association of REALTORS.
10 Question TREC has the power to do all of the following EXCEPT 10 A. make and enforce rules and regulations. B. mediate commission disputes between license holders or brokerage firms. C. establish standards of conduct and ethics for license holders. D. administer and enforce license law and levy civil fines.
11 Texas Real Estate License Act (TRELA) and the Texas Real Estate Commission (TREC) 11 The primary purpose of TRELA and TREC is to protect the public of the State of Texas. TRELA is the law that governs all real estate license holders and sets the powers for the TREC.
12 12 Composition of TREC Nine members six brokers and three members of the general public Appointed by the governor, with the advice and consent of the state senate, to staggered six-year terms One broker designated by the governor as chairperson
13 13 Duties and powers Make and enforce rules and regulations Establish standards of conduct and ethics for license holders Administer and enforce license law and levy civil fines Select an administrator and employees to administer the law Issue active and probationary licenses and collect money for licenses and renewals
14 Duties and powers Cont d 14 Conduct investigations (within four years after the incident), hold hearings, and issue injunctions Suspend or revoke a license, and place on probation or reprimand a license holder Initiate a cease and desist action Inspect and accredit real estate education programs Promulgate contracts and addenda Enforce the Texas Timeshare Act
15 Duties and powers do NOT include: 15 Mediate or settle commission or other disputes between license holders or brokerage firms Recommend individual license holders to the public Send license holders to jail
16 Question To determine whether or not a real estate license is required for a particular activity or dealing all of the following would be required EXCEPT 16 A. the activity or dealing would have to involve real property. B. the activity or dealing would have to involve compensation. C. the activity or dealing would have to involve another person. D. the activity or dealing would have to involve a commission
17 Question Which of the following would NOT require real estate license? 17 A. Negotiating the acquisition of a parcel of real estate for another and for some type of valuable consideration B. Negotiating the acquisition of goodwill and assets of a business opportunity for another and for some type of valuable consideration C. Buys, exchanges or leases real property for another and for some type of valuable consideration D. Negotiates the lease of real property for another and for some type of valuable consideration
18 18 The three-prong test to determine whether a real estate license is required is activity or dealing in real property, for compensation, and for others. A real estate license is required for any person or business entity that for compensation does any of the following: Lists Buys Auctions Sells Leases Exchanges Negotiates
19 19 Remember, you need a license if you LLBEANS real property for others and are compensated.
20 Obtaining a Texas sales agent or broker license 20 The Texas Real Estate Commission (TREC) recognizes two levels of responsibility for license holders, which are based on experience and additional education.
21 Question 21 All of the following are requirements to be eligible for a real estate license EXCEPT A. at least 18 years old. B. a U.S. citizen or legal alien. C. a legal resident of Texas for at least 90 days. D. working under the supervision of a sponsoring broker.
22 Question 22 After completing the all of the educational requirements, all of the following must be submitted to TREC at the time of application EXCEPT A. written application. B. required fees. C. Sales Agent Sponsorship Form. D. certifications showing completion of the required education
23 Question 23 An applicant for a broker s license must complete the required education which includes of at least A. 180 classroom hours of core real estate courses. B. 270 classroom hours of core real estate courses. C. 630 classroom hours of core real estate courses. D. 900 classroom hours of core real estate courses.
24 Question After receiving the broker s license, if acting as a managing broker, the broker will the following additional duties EXCEPT 24 A. meeting all compliance and regulatory requirements. B. establishing office policy and compensation requirements. C. directly supervising the sales agents in the brokerage firm. D. taking TREC s Broker Responsibility Course.
25 Sales agent license no experience in real estate required. Must be 25 at least 18 years old, a U.S. citizen or legal alien, a legal resident of Texas at time of filing, and sponsored by a sponsoring broker
26 26 Complete required sales agent education of 180 classroom hours, which includes 30 classroom hours (2 semester hours) in the following: Principles of Real Estate I Principles of Real Estate II Law of Agency Real Estate Finance Law of Contracts Promulgated Forms
27 Submit a written application and required fee to TREC 27 Sales Agent Sponsorship Can be submitted before or after passing the exam; however, an active license cannot be issued without a sponsoring broker Certifications showing completion of the required education
28 Fast Fingerprint Pass with fingerprinting done by either MorphoTrust or the test provider 28 Receive the TREC with the eligibility ID number to take the license exam Schedule to take the exam with the test provider; exam must be passed within one year of the date of filing the TREC application
29 Satisfy TREC as to the honesty, trustworthiness, integrity, and competency of the applicant 29 Information on the application, submitting fingerprints, and passing the licensing exam is considered proof.
30 30 Applicant must have a minimum of four years of active experience as a Texas license holder in the 60 months (five years) preceding the application date.
31 Applicant must complete required education of 900 classroom hours, which include the following: 31 At least 270 classroom hours of core courses Remaining 630 classroom hours must include a 30-hour real estate broker course. The remaining hours must be in core real estate courses or college credit from a bachelor s degree or higher and accepted by TREC.
32 32 Applicant must pass the state broker s license exam. After receiving the broker s license, the license holder is qualified to sponsor other license holders.
33 33 If acting as a managing broker, will have additional duties to supervise license holders under, including making sure all contract obligations are fully met, meeting all compliance and regulatory requirements, establishing office policy and compensation requirements; and taking TREC s Broker Responsibility Course
34 34 Applicant for sales agent or broker license will have three attempts to pass both the national and Texas specific exams prior to the application expiration. If the applicant fails the national exam three times, the applicant will need to submit completion of 30 hours of additional education. If the applicant fails the Texas specific exam three times, the applicant will need to submit completion of 30 hours of additional education.
35 The applicant will need to submit 60 hours of additional education if both national and Texas specific exams have been failed three times. 35 A copy of the third failed test results and the certificate(s) of the additional education must be submitted to TREC at education@trec.texas.gov. If the application expires prior to achieving these requirements, the applicant may reapply for licensure.
36 36 SUMMARY Take all six mandatory courses Receive six certificates and apply online Pay online Fax or certificates Receive id # from TREC ( ed) Make appointment for fingerprinting Make appointment for test
37 37 Sales Agent Licensing Exam- two portions: National exam contains 80 scored questions Texas State exam contains 30 scored questions Passing scores are: 70% or higher on the National exam ( 56 correct) 70% or higher on the Texas State exam. (21 correct) Total time for the exams are: 150 minutes for the National exam (2.5 hours) 90 minutes for the Texas State exam (1.5 hours)
38 Notes for Tonight 38 Contact Information A PDF of tonight s slides will be ed to you tomorrow.
39 Topics To Be Discussed Next Week Community property Homestead Deceptive Trade Practices Act Wills and estates landlord-tenant issues Foreclosure and short sales Mechanic s and materialman s liens 39
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