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Section 1Texas: LicensingPreview
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Key Points
Term: TREC Eligibility Notice - Authorization and identifying information used to schedule the licensing exam.
Common Mistakes
The eligibility notice is the exam-scheduling trigger; it is not an active sales-agent license.
Exam Tips
Always verify the applicant’s status with TREC before scheduling.
Section 2Texas: Standards of ConductPreview
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Key Points
Term: Broker Name - Required disclosure for advertising to avoid misleading impressions.
Common Mistakes
Team names are allowed, but they must be clearly linked to the broker’s name.
Exam Tips
Always review advertising materials with the broker before publication.
Section 3Texas: ContractsPreview
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Key Points
Term: Seller’s Disclosure Notice - Required form for disclosing property condition.
Common Mistakes
The Information About Brokerage Services form deals with brokerage relationships, not property condition.
Exam Tips
Carefully review the Seller’s Disclosure Notice with your attorney.
Section 4National: Real Estate Math CalculationsPreview
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Key Points
Term: 360-Day Year - Used for calculating proration when the closing date falls mid-year.
Common Mistakes
Using a 365-day year would require a more complex calculation.
Exam Tips
Always confirm the year used in the proration calculation.
Section 5Texas: Agency and BrokeragePreview
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Key Points
Term: IABS form - Required notice to prospective buyers regarding brokerage services.
Common Mistakes
Distinguishing between general inquiries and substantive discussions is key.
Exam Tips
Carefully analyze the communication for specific property details and representation discussions.
Section 6National: Real Estate PracticePreview
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Key Points
Term: Familial Status - Protected class under the FHA, encompassing families with children
Common Mistakes
The FHA focuses on preventing discrimination in housing, not simply providing equal opportunity.
Exam Tips
Always verify the seller’s stated reasons for any restrictions on tenants.
Section 7National: Property Disclosures and Environmental IssuesPreview
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Key Points
Term: Pre-1978 Housing - Trigger for lead-based paint disclosure requirements
Common Mistakes
Texas seller disclosure does not replace the federal lead-based paint disclosure.
Exam Tips
Always provide the EPA pamphlet to the buyer.
Section 8National: Financing and SettlementPreview
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Key Points
Term: Loan Estimate - Standardized form providing estimated mortgage terms
Common Mistakes
The Loan Estimate focuses on estimated costs and terms, not final closing costs.
Exam Tips
Understand the purpose of the Loan Estimate – to provide a baseline for comparison.
Section 9National: Property Value and AppraisalPreview
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Key Points
Term: Market Value - An opinion tied to a specified date, defined rights, typical motivation, informed parties, and reasonable exposure.
Common Mistakes
A current market trend is a factor, but not a replacement for a defined effective date.
Exam Tips
Always identify the effective date when assessing market value.
Section 10National: Real Estate Contracts and AgencyPreview
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Key Points
Term: Unqualified Acceptance - Agreement to an offer without changing its terms.
Common Mistakes
A conditional reply is not an unqualified acceptance.
Exam Tips
Always look for unqualified acceptance.
Section 11National: Forms of Ownership, Transfer, and Recording of TitlePreview
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Key Points
Term: Delivery - An act or words showing the grantor’s present intent that the deed become operative.
Common Mistakes
Payment of the purchase price does not transfer title.
Exam Tips
Look for present intent to deliver and grantee acceptance; do not require hand-to-hand transfer unless the facts make it decisive.
Section 12National: Real Property Characteristics, Legal Descriptions, and Property UsePreview
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Key Points
Term: Fixture - An item that has become so attached to real property that it is considered part of the property.
Common Mistakes
A personal property item can be easily removed, while a fixture is permanently attached.
Exam Tips
Consider all four factors – attachment, adaptation, intent, and agreement – when analyzing a potential fixture.
Section 13Texas: Commission Duties and PowersPreview
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Key Points
Term: TREC investigation – Triggered by a signed complaint.
Common Mistakes
TREC’s investigation precedes judicial judgment.
Exam Tips
Understand the steps involved in TREC’s complaint process.
Section 14Texas: Special TopicsPreview
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Key Points
Term: Community Property - Property acquired during marriage
Common Mistakes
The presumption is a starting point, not a definitive determination
Exam Tips
Understand the presumption’s effect – it’s a starting point for determining ownership
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