TEXAS STATE PORTION REAL ESTATE
EXAM QUESTIONS AND ANSWERS
GRADED A+ 2025/2026
Who is responsible for any wrongs done by a salesperson while acting within the scope of the
agency agreement? - ANS The broker is liable for the wrongdoing of his or her salespersons.
The principal is liable for any wrongs committed by the broker while acting within the scope of
the agency agreement.
what is the distinction between sales contracts and option contracts? - ANS One
characteristic of sales contracts is mutual obligation. Option contracts lack mutual obligation.
The buyer in an option contract is not obligated to buy.
A listing agreement must contain: - ANS a standard street address is sufficient.
If the commission investigates a complaint and determines that an individual's real estate
license should be suspended or revoked, the licensee is entitled to a hearing before the
commission within how many days after the commission reaches its decision? - ANS A
licensee who faces suspension or revocation of their license is entitled to a hearing within 30
days of the commission reaching their decision.
Which of the licensed entities does not fall under the regulatory authority of the Texas Real
Estate Commission? - ANS The Texas Appraiser Licensing and Certification Board has
jurisdiction over state licensed and certified appraisers. In addition to licensing brokers and
salespersons, the Texas Real Estate Commission is responsible for licensing real estate
inspectors and for regulation of companies that sell and issue residential service contracts
("home warranties"). (Article 65736, Vernon's Texas Civil Statutes.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,A licensee in Texas may not practice law, unless licensed and authorized to do so in Texas.
Practicing law includes altering contracts, or drawing up: - ANS a deed, deed of trust, will, or
other written instrument that may transfer or affect the title to land.
What penalties may a licensee who breaches the agency relationship face? - ANS A licensee
who breaches the agency relationship may be sued for damages, termination of the contract,
and/or non-payment of the commission.
Undisclosed dual agency is: - ANS a violation of the TRELA.
What is the composition of the Broker-Lawyer Committee? - ANS Six broker members are
appointed by the Texas Real Estate Commission; six attorney members are appointed by the
President of the State Bar of Texas. The appointees serve a term of six years with one-third of
them being appointed every two years.
A licensee must disclose any existing agency relationships to a new client. This disclosure: -
ANS may be done orally or in writing.
A broker may do which of the following for an individual without actually representing the
individual? - ANS A broker may obtain financing, assist in locating a property, and prepare a
contract or lease for an individual without representing the individual.
A real estate licensee must notify the real estate program manager if: - ANS A licensee must
notify the real estate program manager within 20 days of receiving any criminal complaint,
information, indictment, or conviction in which the licensee is named as a defendant; or entry
of a civil court order, verdict, or judgment, against the licensee in any court of competent
jurisdiction in which the subject matter therein involves any real estate or business-related
activity by the licensee.
Pamela, who lives in a suburb in which many homes are rented, decides to open a rental agency
in order to assist her friends in finding suitable renters. Pamela's conduct is -
ANS unacceptable because it involves an activity for which a real estate license is required.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, The sole broker of a brokerage firm has his or her real estate license suspended for two years.
What would happen to the licenses of the salespersons affiliated with this broker? - ANS If
the broker's license is suspended or revoked, the salespersons' licenses are made inactive and
must be returned to the commission. A salesperson's license may be made active when the
salesperson is sponsored by a new broker.
Which agency is responsible for the contract forms used by Texas licensees? - ANS The Texas
Real Estate Commission
A community property with rights of survivorship agreement must: - ANS doesn't need to go
through probate, must be signed by both spouses, must include the property description, be in
writing, contain wording that makes evident the intent of survivorship, and be recorded in the
county courthouse.
Generally, the most important responsibility of an agent is to: - ANS represent the financial
interests of the client.
Broker Bea recently entered into a listing contract with Seller Sally. Broker Bea just learned that
Sally is actually 17 years old and not married. The listing contract is: - ANS voidable at the
option of the minor.
Which of the following people would need to obtain a real estate license if they were involved
in a real estate activity?
A. the executor of an estate
B. a court-appointed guardian
C. a trustee of the bankruptcy court
D. one who sells lots in a mobile home park - ANS D. The sale of land/lots is an act of
brokerage and requires that one have a license if he or she is not the owner of the lot. The other
three answers are listed as people who do not need a license in Section 3 of the Texas Real
Estate License Act.
An agency relationship may be terminated by - ANS expiration of time, agreement, rescission,
abandonment, or by the death of either party.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS AND ANSWERS
GRADED A+ 2025/2026
Who is responsible for any wrongs done by a salesperson while acting within the scope of the
agency agreement? - ANS The broker is liable for the wrongdoing of his or her salespersons.
The principal is liable for any wrongs committed by the broker while acting within the scope of
the agency agreement.
what is the distinction between sales contracts and option contracts? - ANS One
characteristic of sales contracts is mutual obligation. Option contracts lack mutual obligation.
The buyer in an option contract is not obligated to buy.
A listing agreement must contain: - ANS a standard street address is sufficient.
If the commission investigates a complaint and determines that an individual's real estate
license should be suspended or revoked, the licensee is entitled to a hearing before the
commission within how many days after the commission reaches its decision? - ANS A
licensee who faces suspension or revocation of their license is entitled to a hearing within 30
days of the commission reaching their decision.
Which of the licensed entities does not fall under the regulatory authority of the Texas Real
Estate Commission? - ANS The Texas Appraiser Licensing and Certification Board has
jurisdiction over state licensed and certified appraisers. In addition to licensing brokers and
salespersons, the Texas Real Estate Commission is responsible for licensing real estate
inspectors and for regulation of companies that sell and issue residential service contracts
("home warranties"). (Article 65736, Vernon's Texas Civil Statutes.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,A licensee in Texas may not practice law, unless licensed and authorized to do so in Texas.
Practicing law includes altering contracts, or drawing up: - ANS a deed, deed of trust, will, or
other written instrument that may transfer or affect the title to land.
What penalties may a licensee who breaches the agency relationship face? - ANS A licensee
who breaches the agency relationship may be sued for damages, termination of the contract,
and/or non-payment of the commission.
Undisclosed dual agency is: - ANS a violation of the TRELA.
What is the composition of the Broker-Lawyer Committee? - ANS Six broker members are
appointed by the Texas Real Estate Commission; six attorney members are appointed by the
President of the State Bar of Texas. The appointees serve a term of six years with one-third of
them being appointed every two years.
A licensee must disclose any existing agency relationships to a new client. This disclosure: -
ANS may be done orally or in writing.
A broker may do which of the following for an individual without actually representing the
individual? - ANS A broker may obtain financing, assist in locating a property, and prepare a
contract or lease for an individual without representing the individual.
A real estate licensee must notify the real estate program manager if: - ANS A licensee must
notify the real estate program manager within 20 days of receiving any criminal complaint,
information, indictment, or conviction in which the licensee is named as a defendant; or entry
of a civil court order, verdict, or judgment, against the licensee in any court of competent
jurisdiction in which the subject matter therein involves any real estate or business-related
activity by the licensee.
Pamela, who lives in a suburb in which many homes are rented, decides to open a rental agency
in order to assist her friends in finding suitable renters. Pamela's conduct is -
ANS unacceptable because it involves an activity for which a real estate license is required.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, The sole broker of a brokerage firm has his or her real estate license suspended for two years.
What would happen to the licenses of the salespersons affiliated with this broker? - ANS If
the broker's license is suspended or revoked, the salespersons' licenses are made inactive and
must be returned to the commission. A salesperson's license may be made active when the
salesperson is sponsored by a new broker.
Which agency is responsible for the contract forms used by Texas licensees? - ANS The Texas
Real Estate Commission
A community property with rights of survivorship agreement must: - ANS doesn't need to go
through probate, must be signed by both spouses, must include the property description, be in
writing, contain wording that makes evident the intent of survivorship, and be recorded in the
county courthouse.
Generally, the most important responsibility of an agent is to: - ANS represent the financial
interests of the client.
Broker Bea recently entered into a listing contract with Seller Sally. Broker Bea just learned that
Sally is actually 17 years old and not married. The listing contract is: - ANS voidable at the
option of the minor.
Which of the following people would need to obtain a real estate license if they were involved
in a real estate activity?
A. the executor of an estate
B. a court-appointed guardian
C. a trustee of the bankruptcy court
D. one who sells lots in a mobile home park - ANS D. The sale of land/lots is an act of
brokerage and requires that one have a license if he or she is not the owner of the lot. The other
three answers are listed as people who do not need a license in Section 3 of the Texas Real
Estate License Act.
An agency relationship may be terminated by - ANS expiration of time, agreement, rescission,
abandonment, or by the death of either party.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
