The Texas Occupations Code allows the Texas Real Estate Commission to adopt rules requiring license holders to use contract forms prepared by which entity?

Question:  The Texas Occupations Code allows the Texas Real Estate Commission to adopt rules requiring license holders to use contract forms prepared by which entity?

Answer:  TREC  ( Texas Real Estate Broker-Lawyer Committee )

To whom is title conveyed by a deed of trust?

Question:  To whom is title conveyed by a deed of trust?

Answer:  The Trustee (A disinterested third party)

Which type of property possession carries an implicitly understood termination date?

Question:  Which type of property possession carries an implicitly understood termination date?

Answer:  Estate for years

Which type of deed transfers title when a parcel of real property is sold at a court-ordered public auction as the result of foreclosure?

Question:  Which type of deed transfers title when a parcel of real property is sold at a court-ordered public auction as the result of foreclosure?

Answer:  Sheriff's Deed

Which deed may be used when a grantor is generally unsure about the validity of his or her title?

Question:  Which deed may be used when a grantor is generally unsure about the validity of his or her title?

Answer:  Quit Claim Deed

Which type of deed is also called a “bargain and sale deed with a covenant against the grantor’s acts”?

Question:  Which type of deed is also called a “bargain and sale deed with a covenant against the grantor’s acts”?

Answer:  Special warranty deed

By which deed covenant does the grantor essentially guarantee the title is valid against any other claims to the property?

Question:  By which deed covenant does the grantor essentially guarantee the title is valid against any other claims to the property?

Answer:   Quite Enjoyment

If a contracting party performs most but not all contractual obligations, that party has?

Question:  If a contracting party performs most but not all contractual obligations, that party has?

Answer:  Created specific performance

Which deed clause describes the extent of the ownership interest that is being conveyed by the deed?

Question:  Which deed clause describes the extent of the ownership interest that is being conveyed by the deed?

Answer:  Habendum

A contract that has yet to be fully executed is?

Question:  A contract that has yet to be fully executed is?

Answer:  An executory contract

What does it mean when owner "Sleeps on his rights"?

When a property owner "Sleeps on his rights", it means the owner neglected taking care of a known legal issue(s) for a long period of time.

When someone does not take care of a know legal issue for a long time and just let it be, some time that can be construed as acceptance of the issue or agreeing to the situation.  Therefore after some time it will be become the new normal.

"Sleeping on rights" is very common and it has very serious consequences.

When does adverse possession occur?

Question:  When does adverse possession occur?

Answer:  When a property owner "sleep on his rights"

What doctrine transfers a decedent’s property to the state when the individual dies without a will or legal heir?

Question:  What doctrine transfers a decedent’s property to the state when the individual dies without a will or legal heir?

Answer:  Escheat

What type of agreement does borrower need to create when they are not able to pay for short-term future mortgage payment?

Question:  What type of agreement does borrower need to create when they are not able to pay for short-term future mortgage payment?

Answer:  Forbearance

What does the metes and bounds land description method rely upon to identify the exact dimensions and location of a property?

Question:  What does the metes and bounds land description method rely upon to identify the exact dimensions and location of a property?

Answer:  Longitude and Latitude

What does a deed do?

What is the purpose of a deed?

Question:  What does a deed do?

Answer:  Transfer title

What is the acquisition of new land or real property by artificial or natural means without an instrument of conveyance?

Question:  What is the acquisition of new land or real property by artificial or natural means without an instrument of conveyance?

Answer:  Accession

What is the most common instrument for voluntary alienation?

Questions:  What is the most common instrument for voluntary alienation?

Answer:  Deed

Mutual and reciprocal obligations are created by what type of contract?

Question:  Mutual and reciprocal obligations are created by what type of contract?

Answer:  Bilateral

The acceptance and completion of an obligation executes what type of contract?

Question:  The acceptance and completion of an obligation executes what type of contract?

Answer:  Unilateral

What does zoning designate?

Question:  What does zoning designate?

Answer:  Type of development allowed

Which principle requires land development to be financially viable, physically plausible, and maximize land usability?

Question:  Which principle requires land development to be financially viable, physically plausible, and maximize land usability?

Answer:  Highest value and best use

What will give a clear picture of the terrain and elevation for a given parcel?

Question:  What will give a clear picture of the terrain and elevation for a given parcel?

Answer:  Contour Map (a map which shows lines of different elevations)

What are townships?

In real estate a township usually means 36-square-miles of land parcels.

Question:  What are townships?

Answer:  36-square-miles of land parcels

What is an easement by prescription?

Question:  What is an easement by prescription?

Answer:  A right to use part of someone else’s property that is acquired through a long, continuous and adverse use of that property

What is a plat?

Question:  What is a plat?

Answer:  Part of a land tract

In which system are there 360 degrees (°) in a circle, 60 minutes (') in every degree, and 60 seconds (") in every minute?

Question:  In which system are there 360 degrees (°) in a circle, 60 minutes (') in every degree, and 60 seconds (") in every minute?

Answer:  Sexagesimal system

Which of the following is a permanent reference point that ensures lot dimensions are not lost even if the monument itself disappears?

Question:  Which of the following is a permanent reference point that ensures lot dimensions are not lost even if the monument itself disappears?

Answer:  Bench Mark

What is the right to use a part of another individual’s property for a specific, limited purpose?

Question:  What is the right to use a part of another individual’s property for a specific, limited purpose?

Answer:  Easement

Economic scarcity is created solely by?

Question:  Economic scarcity is created solely by

Answer:  Demand for land in a particular area

If heavy rains change the course of a river and five feet of land are added to a property abutting the river as a result of the redirection, the property owner acquires rights to the added land by?

Question:  If heavy rains change the course of a river and five feet of land are added to a property abutting the river as a result of the redirection, the property owner acquires rights to the added land by

Answer:  Accession

Which term is defined as the land and buildings plus the rights that go along with ownership?

Question:  Which term is defined as the land and buildings plus the rights that go along with ownership?

Answer:  Real Property

The acquisition of ownership rights to another individual’s property through an openly hostile and unauthorized occupation of that land is a type of involuntary conveyance referred to as?

Question:  The acquisition of ownership rights to another individual’s property through an openly hostile and unauthorized occupation of that land is a type of involuntary conveyance referred to as?

Answer:  Adverse possession

What is a deed?

A deed is a written instrument that conveys title.

How many acres of contiguous urban lots may a family or individual claim as a homestead?

In Texas and according to the Texas Homestead Laws, the urban homestead of a family or single, adult person may consist of not more than 10 acres which may be in one or more contiguous lots, if used for purposes as an urban home or as both an urban home and place to exercise a calling or business.

Question:  How many acres of contiguous urban lots may a family or individual claim as a homestead?

Answer:  not more than 10 acres

In Texas, a rural homestead for a single adult may not exceed?

In Texas, a rural homestead for a single adult may not exceed 100 acres of land.

Question:  In Texas, a rural homestead for a single adult may not exceed?

Answer:  not exceed 100 acres of land

In Texas, which laws prevent a creditor from forcing the sale of property to pay off a debt?

The Texas homestead laws prevent a creditor from forcing the sale of the homestead to pay off a debt.

Question:  In Texas, which laws prevent a creditor from forcing the sale of property to pay off a debt?

Answer:  The Texas Homestead Laws

In Texas, a lender may foreclose a home equity loan secured by the borrower’s homestead only by the process of?

In Texas, a lender may foreclose a home equity loan secured by the borrower’s homestead only by the process of judicial foreclosure.

Question:  In Texas, a lender may foreclose a home equity loan secured by the borrower’s homestead only by the process of?

Answer:  Judicial Foreclosure

What is the maximum rural homestead for a family?

In Texas, the maximum rural homestead for a family may not exceed 200 acres of land.

Question:  What is the maximum rural homestead for a family?

Answer:  may not exceed 200 acres of land

What type of damages are compensatory for pecuniary loss, including costs of repair or replacement?

In Texas, regarding Home Equity Loan, economic damages are compensatory damages for pecuniary loss, including costs of repair or replacement.

But the term does not include exemplary or punitive damages or damages for physical pain and mental anguish, loss of consortium, disfigurement, physical impairment, or loss of companionship and society.

In Texas, an urban homestead may consist of?

A Texas urban homestead may consist of not more than 10 acres of land.

Question:  In Texas, an urban homestead may consist of?

Answer: Not more than 10 acres of land

The numerated deceptive acts or practices under Section 17.46(b) of the Texas Business and Commerce Code are usually referred to as the ...

Section 17.46(b) of the Texas Business and Commerce Code contains a list of 27 acts or practices that are deemed to be violations of the Act. These enumerated deceptive acts or practices are usually referred to by attorneys and the courts as "the laundry list."

Question:  The numerated deceptive acts or practices under Section 17.46(b) of the Texas Business and Commerce Code are usually referred to as the ...

Answer:  "The Laundry List"

How many day waiting period and how many days cancellation period does Texas law allow for home equity loan?

Texas law provides a 12 days waiting period before closing a home equity loan and 3 days to cancel the loan without penalty.

Question:  How many day waiting period and how many days cancellation period does Texas law allow for home equity loan?

Answer:  12 days and 3 days

The Texas Constitution was amended to allow home equity loans effective in what year?

The Texas Constitution was amended to allow home equity loans effective in 1998.

Question:  The Texas Constitution was amended to allow home equity loans effective in what year?

Answer:  1998

What is exempt from the Texas Deceptive Trade Practice Act?

"Professional Services" such as doctors, lawyers, plumbers, etc... are exempted from the Texas Deceptive Trade Practice Act.

Question:  What is exempt from the Texas Deceptive Trade Practice Act?

Answer:  Professional Services

Texas allows up to how much monies exemption for an individual personal property under Homestead law?

Texas allows an individual to exempt up to $30,000 in personal property under the law of Texas Homestead Exemption.

Question: Texas allows an individual to exempt up to how much in personal property?

Answer:  $30,000

In what year were homestead protections first included in the Texas Constitution?

In Texas, the Homestead protection law were first included in the Texas Constitution in 1845.

Question:  In what year were homestead protections first included in the Texas Constitution?

Answer:  1845

Which states is an example of NOT a community property state?

New York is NOT a community property state

How can buyers be assured that they are receiving valid title in a real estate transaction?

"RECORDING" is the process of entering a document into the public record. We are primarily concerned with recording those documents related to the conveyance of real estate. This process is important because it provides prospective buyers with accessible, legally-acceptable evidence of a clean and legitimately-held title. "Recording" helps sellers to assure prospective buyers that any transaction which takes place between them will involve a valid title conveyance.

What type of suit must be filed when titleholder discovers a gap in the chain of title and wishes to clear this potential cloud on the title

If a titleholder discovers a gap in the chain of title and wishes to clear this potential cloud on the title, titleholder must file SUIT FOR CONDEMNATION.

What is the correct term for the process of entering a document into the public record?

The process of entering a document into the public record is called "RECORDING"; for our purposes, we are primarily concerned with recording those documents related to the conveyance of real estate.

Which form of co-ownership explicitly involves the right of survivorship?

Joint tenancy explicitly involves the right of survivorship.

Desirable tenants have all of the following qualifications

Desirable tenants have all of the following qualifications (here are just a few examples but not limited to these qualifications):

• Has sufficient net equity to support the terms of the proposed lease
• Proposes better rental rates than other similarly qualified candidates for tenancy
• Requests reasonable services and improvements

What is the purpose of the Repairs provision of a commercial lease?

The purpose of the repairs provision in a lease contract is to assign repair and maintenance responsibilities to either landlord or tenant.

Question:  What is the purpose of the Repairs provision of a commercial lease?

Answer:  To assign repair and maintenance responsibilities to either landlord or tenant

Laypersons should NOT write lease clauses because of?

Laypersons (common people - not lawyers) should NOT write lease clauses because writing lease clauses constitutes the practice of law.

Question:  Laypersons should NOT write lease clauses because of?

Answer:  In Texas and according to TREC. It is illegal to use non-standard commercial lease

Which of the following best describes a combined-use property?

A combined-used property is any property where several and various types of businesses have leasehold interests.

Question:  Which of the following best describes a combined-use property?

Answer:  A property in which various types of businesses have leasehold interests

In what type of lease is the rent composed of a base rental figure plus a portion of total profits?

A lease contract that is composed of a base rental figure plus a portion of total profits is called percentage lease contract.

Question:  In what type of lease is the rent composed of a base rental figure plus a portion of total profits?

Answer:  Percentage lease

Valid leases contain all of the following essential provisions

A Valid lease contract contain all of the following essential provisions:

• Quite possession
• Condemnation
• Signatures

But not,

Tenant Entry

What is the most common action taken by landlords against tenants in breach of contract?

Before taking any legal action and/or serving eviction notice, etc...   A landlord should notify the offending tenant against tenants in breach of contract.

Question:  What is the most common action taken by landlords against tenants in breach of contract?

Answer:   Notify the offending tenant

Which term refers to the government’s right to take privately owned land for public use?

The law that allows government to take private property and/or owned land for public use is Eminent Domain.

Question:  Which term refers to the government’s right to take privately owned land for public use?

Answer:   Eminent domain

Which lease agreement terminates upon the death of the landlord or the tenant?

An estate at will terminates upon the death of the landlord or the tenant.  This make sense because estate at will exists as long as the parties agreeing are both still alive.

Question:  Which lease agreement terminates upon the death of the landlord or the tenant?

Answer:   Estate at will

Why might a tenant be evicted?

There are many reason when a tenant may be evicted by landlord, however one major reason is for damaging the property.

Question:  Why might a tenant be evicted?

Answer:  For damage to the property

When may a landlord be delayed or stopped from evicting a tenant?

Due to bankruptcy laws, a landlord be delayed or stopped from evicting a tenant when the tenant files for bankruptcy and is granted a stay order by the court.

Question:  When may a landlord be delayed or stopped from evicting a tenant?

Answer:  When the tenant filed for bankruptcy and has been granted a stay order by the court

Under eminent domain, the price that the government must pay to the original property owners must be valued at?

Under eminent domain laws, the price that the government must pay to the original property owners must be the current fair market value of the property.

Question:  Under eminent domain, the price that the government must pay to the original property owners must be valued at?

Answer:   Current fair market value of the eminent domain affected property

Can a lease continue even after the property has been sold to a third party?

A lease can continue even after the property has been sold to a third party but only if the lease contract indicates that this is possible and acceptable.  For example, a lease contract may have an extension clause which allow for auto renewal or the contract turns to month-to-month term.

Question:  Can a lease continue even after the property has been sold to a third party?

Answer:  Yes, but only if the lease contract clearly states it is possible and allowed

A lease contract may be terminated if ...

As long as the contract allow it, a lease contract may be terminated if one party has legal authority to terminate.

Question:  A lease contract may be terminated if ...

Answer:  One party has legal authority to terminate

When must a servicer submit an annual escrow statement to the borrower?

A servicer must submit an annual escrow statement to the borrower within 30 days of completion of the computation year.

Question:  When must a servicer submit an annual escrow statement to the borrower?

Answer:  Within 30 days of completion of computation year

Who is required to prepare and distribute special information booklets to help people borrowing money for real estate purchases better understand the nature and cost of settlement services?

The person responsible to prepare and distribute special information booklets is the secretary. The secretary is required to prepare and distribute special information booklets to help people borrowing money for real estate purchases better understand the nature and cost of settlement services.


Question:  Who is required to prepare and distribute special information booklets to help people borrowing money for real estate purchases better understand the nature and cost of settlement services?

Answer:   The Secretary

When may the HUD-1 Settlement Statement be given to the borrower?

The HUD-1 Settlement Statement should be given to the borrower both before or at settlement.

Question:  When may the HUD-1 Settlement Statement be given to the borrower?

Answer:  Both before or at settlement

When must a servicer acknowledge receipt of an information request from a borrower?

A servicer must acknowledge the receipt of an information request from a borrower within 20 business days.

Question:  When must a servicer acknowledge receipt of an information request from a borrower?

Answer:  20 business days

How long does a person have to bring a private lawsuit against someone for a violation of Section 6 (2607)?

A person has 3 years to bring a private lawsuit against someone for a violation of Section 6 (2607).

Question:  How long does a person have to bring a private lawsuit against someone for a violation of Section 6 (2607)?

Answer:  3 years

RESPA defines a "thing of value" as which of the following things?

RESPA considers a "Thing of value" as any of the following: any payment, advance, funds, loan, service, or other consideration.

Question:  RESPA defines a "thing of value" as which of the following things?

Answer:  Any of these things,  Service, Advance and Payment

What does a servicer do?

A loan servicer is usually the mortgage-holder or a third-party company responsible for servicing a mortgage. The servicer responsibility includes collecting payments for principal, interest and escrow.

Question:  What does a servicer do?

Answer:  Collect payments to be applied against principal, interest and escrow

What may the good faith estimate disclose?

The good faith estimate usually disclose either an estimate of the dollar amount or a range of dollar amounts for each settlement service.

Question: What may the good faith estimate disclose?

Answer:  Total amounts from each loan service

Which transaction requires a special information booklet to be given to the customer?

With a federally-related mortgage loan intended for the purchase of a one-to-four family residential property, a special information booklet must be given to the customer.

Question:  Which transaction requires a special information booklet to be given to the customer?

Answer:  A federally-related mortgage loan intended for the purchase of a one-to-four family residential property

When must the servicer submit an initial escrow account statement to the borrower?

A loan servicer must submit an initial escrow account statement to the borrower at settlement or within 45 days of settlement.

Question:  When must the servicer submit an initial escrow account statement to the borrower?

Answer:  At settlement or within 45 days of settlement

What must be included in the annual escrow statement submitted by the servicer?

What must be included in the annual escrow statement submitted by the servicer?

A servicer is required to submit a statement to the borrower at least once for a 12-month period, and within 30 days of the conclusion of such period, a statement clearly itemizing the amount of the current monthly payment, portion of the monthly payment being placed in the escrow account, and the total amount paid out of the escrow account during the period.

Questions:  What must be included in the annual escrow statement submitted by the servicer?

Answer:  Total amount paid out of the account

If a lender has either an affiliate relationship or a direct or beneficial ownership interest of more than one percent in a provider of settlement services and the lender directly or indirectly refers business to the provider, this relationship is referred to as a what kind of business arrangement?

When a lender has either an affiliate relationship or a direct or beneficial ownership interest of more than one percent in a provider of settlement services and the lender directly or indirectly refers business to the provider, this relationship is referred to as a what (type) business arrangement?

Answer:  Controlled

A violation of Section 8 may result in a maximum fine of?

Violating Section 8 will result in a maximum fine of up to $10,000.

Question:  A violation of Section 8 may result in a maximum fine of?

Answer:  $10,000

What year did RESPA become effective?

RESPA was approved and enacted by congress in 1974. The first year RESPA went into effect was in 1975.

Question: What year did RESPA become effective?

Answer:  1975

How long does the servicer have to acknowledge a borrower’s complaint in writing?

According to Section 6 of RESPA, borrowers who have a problem with the servicing of their loan (including escrow account questions), should contact their loan servicer in writing, describing the nature of their complaint. The servicer must acknowledge the complaint in writing within 20 business days of receipt of the complaint.

Question: How long does the servicer have to acknowledge a borrower’s complaint in writing?

Answer: 20 business days

TREC online course requirements for first time license renewal, is it CE or SAE and how many hours do I need?

Two years have quickly passed since I received my real-estate certificate.  I have done several transaction successfully and have enjoyed both the business and making some extra money on the side doing real-estate in Houston and Katy.

I have received a notice from TREC that my license is expiring soon and I have to take some required CE (continuing education) or MCE (mandatory continuing education) courses in order to qualify for renewal.

As of the time of this writting, Friday, July 14, 2017, I was surprise how confusing it was to try to find out WHAT COURSE and HOW MANY HOURS do I need to take exactly?

Here are a few of the different iterations:

• 18 hours CE (consisting of 10 electives + 8 legal update courses)
• 90 hours of CE / SAE (consisting of 30 + 30 + 30 hours of real-estate law courses)
• 98 hours of CE / SAE (consisting of 90 hours above + 8 legal update courses)
• 270 hours SAE package courses
• 278 hours SAE package courses

After looking at all of those conflicting information ... I was frustrated and decided to go to TREC website to check my status (what courses TREC have recorded in their database that I have taken).

I went to https://www.trec.texas.gov and went to the License Holder Search

The result looks like this:

Obviously I have forgotten how many hours of courses was required 2-years-ago when I first took the exam to become a realtor. After summing up my hours, I realized that I have completed 180 hours.

Since TREC website said I have to complete 278 SAE hours in order to renew, this starting to make sense because 

180 hours completed already  +   98 hours of SAE = 278 hours exactly!!!

Once I know this information then I can start looking for which course to exactly shop for an eventually buy it.

I shopped around for about 15 min and found the cheapest price to be $288.75 from 360Training.com.

Well actually 360Training.com is very tricky, if you go straight to their website, they want to charge you $385 for the same course. If you sign-up your email they will send you 10% off coupon. 

However I found one of their subsidiary website Online Classroom

and they had the same exact course for the same price but they have 25% OFF Coupon (the coupon code that I used was SUN25), so I ended up buying my SAE 98 hours course from Online Classroom which is actually powered by 360Training anyways for $288.75 (see the details for the courses I bought below)

I hope this helps someone to figure out what you need to do to renew your TREC sales person license for the first time. :-)