TREBS Exam 5 Questions with verified answers 2026-2027
1. Use of the TREC promulgated One to Four Family Residential Contract (Re-
sale):
A. Is allowed on the sale of a residential condominium
B. Can be used for a vacant residential lot
C. Covers single family, duplex, triplex, and fourplex transactions
D. All of the above
Rationale: The correct answer is C. The TREC One to Four Family Residential
Contract (Resale) covers single family, duplex, triplex, and fourplex transac-
tions.: C. Covers single family, duplex, triplex, and fourplex transactions
2. Broker's fees are:
A. Included in the One to Four Family Residential Contract (Resale) between the
Buyer and the Seller
B. Determined by writing in the Information About Brokerage Services
C. Determined by writing in the Listing Agreement
D. Both B and C
Rationale: The correct answer is C. Broker fees are agreed in the listing agree-
ment between the Seller and the Broker. The Broker has the ability to share
those fees with an agent from an outside company who works with a buyer.:
3. Fraud is:
A. A crime
B. A civil law violation
C. Both A and B
D. Only B
Rationale: The correct answer is C. Fraud can be prosecuted as a crime. Fraud
charges also can go through the courts as civil law violations.:
4. Federal Fair Housing Laws forbid discriminatory practices by parties includ-
ing:
A. Owners of properties
B. Lenders
C. Real estate brokers
D. All of the above
,TREBS Exam 5 Questions with verified answers 2026-2027
Rationale: The correct answer is D. Discriminatory practices are NOT allowed in
any transaction.:
5. In a real estate transaction, the legal description is NOT:
A. Lot and block
B. Metes and bounds
C. A street address
D. A description of the property from a surveyor's field notes
Rationale: The correct answer is C. The legal descriptions in Texas are: Lot and
block, and metes and bounds (sometimes also called surveyor's field notes). A
street address is NOT a legal description.:
6. Earnest money:
A. Constitutes the consideration
B. Is used to make the offer more enticing to the seller
C. Is required in the contract
D. Always equals 1% of the sales price
Rationale: The correct answer is B. Earnest money is a gesture of good faith and
is used to make the offer more enticing to the seller. It can be any amount that
the Buyer wishes to offer, and the Seller is willing to accept.:
7. Chapter 531 Canons of Professional Ethics and Conduct includes::
A. Fidelity
B. Integrity
C. Competency
D. All of the above
Rationale: The correct answer is D. Fidelity, Integrity and Competency are all a
part of Canons of Professional Ethics and Conduct.:
8. In the Buyer Agreement, Intermediary is in Paragraph 8. The paragraph is the
same in the Buyer Agreement and in the:
A. Listing agreement
B. Sales contract
C. Inspecting report
D. Seller's Disclosure
Rationale: The correct answer is A. The written agreements that allow inter-
,TREBS Exam 5 Questions with verified answers 2026-2027
mediary are the Buyer/Tenant agency agreement on the buyer's side, and the
Listing Agreement on the seller's side.:
9. A broker may not disclose any confidential information unless:
A. The broker is given permission in writing by the client.
B. It is required by law.
C. Confidentially is not required in real estate.
D. Both A and B
Rationale: The correct answer is D. Confidential information received from a
client to their agent may not be disclosed unless the agent has been given
written permission to disclose, or if the disclosure is required by law.:
10. If an Agent receives confidential information from a Client while the agency
agreement is in force, that agent may:
A. Share that information once the agreement expires
B. Share that information if the Client authorizes the agent to share it
C. Never share the information with another client
D. Share the information, but only to another agent
Rationale: The correct answer is B. An example of confidential information is
when a Seller informs the agent that they are willing to accept any reasonable
offer but asks the agent not to share it. The confidentiality extends beyond the
expiration of the listing agreement unless, at that time, the Seller gives written
permission to share it.:
11. The TREC promulgated Seller Financing Addendum states that if the buyer
does not furnish the required qualifying documentation within the time limit
allowed:
A. Seller may terminate the contract and keep the earnest money.
B. Seller may terminate the contract but must return the earnest money.
C. Seller must tell Buyer why he is terminating.
D. Buyer will be liable for the cost of the credit report.
Rationale: The correct answer is A. In a Seller Financed contract, the Seller acts
as the bank. Seller can ask for the same qualifying documents to be provided
that a bank or mortgage company requires. If the Buyer agrees to furnish these
1. Use of the TREC promulgated One to Four Family Residential Contract (Re-
sale):
A. Is allowed on the sale of a residential condominium
B. Can be used for a vacant residential lot
C. Covers single family, duplex, triplex, and fourplex transactions
D. All of the above
Rationale: The correct answer is C. The TREC One to Four Family Residential
Contract (Resale) covers single family, duplex, triplex, and fourplex transac-
tions.: C. Covers single family, duplex, triplex, and fourplex transactions
2. Broker's fees are:
A. Included in the One to Four Family Residential Contract (Resale) between the
Buyer and the Seller
B. Determined by writing in the Information About Brokerage Services
C. Determined by writing in the Listing Agreement
D. Both B and C
Rationale: The correct answer is C. Broker fees are agreed in the listing agree-
ment between the Seller and the Broker. The Broker has the ability to share
those fees with an agent from an outside company who works with a buyer.:
3. Fraud is:
A. A crime
B. A civil law violation
C. Both A and B
D. Only B
Rationale: The correct answer is C. Fraud can be prosecuted as a crime. Fraud
charges also can go through the courts as civil law violations.:
4. Federal Fair Housing Laws forbid discriminatory practices by parties includ-
ing:
A. Owners of properties
B. Lenders
C. Real estate brokers
D. All of the above
,TREBS Exam 5 Questions with verified answers 2026-2027
Rationale: The correct answer is D. Discriminatory practices are NOT allowed in
any transaction.:
5. In a real estate transaction, the legal description is NOT:
A. Lot and block
B. Metes and bounds
C. A street address
D. A description of the property from a surveyor's field notes
Rationale: The correct answer is C. The legal descriptions in Texas are: Lot and
block, and metes and bounds (sometimes also called surveyor's field notes). A
street address is NOT a legal description.:
6. Earnest money:
A. Constitutes the consideration
B. Is used to make the offer more enticing to the seller
C. Is required in the contract
D. Always equals 1% of the sales price
Rationale: The correct answer is B. Earnest money is a gesture of good faith and
is used to make the offer more enticing to the seller. It can be any amount that
the Buyer wishes to offer, and the Seller is willing to accept.:
7. Chapter 531 Canons of Professional Ethics and Conduct includes::
A. Fidelity
B. Integrity
C. Competency
D. All of the above
Rationale: The correct answer is D. Fidelity, Integrity and Competency are all a
part of Canons of Professional Ethics and Conduct.:
8. In the Buyer Agreement, Intermediary is in Paragraph 8. The paragraph is the
same in the Buyer Agreement and in the:
A. Listing agreement
B. Sales contract
C. Inspecting report
D. Seller's Disclosure
Rationale: The correct answer is A. The written agreements that allow inter-
,TREBS Exam 5 Questions with verified answers 2026-2027
mediary are the Buyer/Tenant agency agreement on the buyer's side, and the
Listing Agreement on the seller's side.:
9. A broker may not disclose any confidential information unless:
A. The broker is given permission in writing by the client.
B. It is required by law.
C. Confidentially is not required in real estate.
D. Both A and B
Rationale: The correct answer is D. Confidential information received from a
client to their agent may not be disclosed unless the agent has been given
written permission to disclose, or if the disclosure is required by law.:
10. If an Agent receives confidential information from a Client while the agency
agreement is in force, that agent may:
A. Share that information once the agreement expires
B. Share that information if the Client authorizes the agent to share it
C. Never share the information with another client
D. Share the information, but only to another agent
Rationale: The correct answer is B. An example of confidential information is
when a Seller informs the agent that they are willing to accept any reasonable
offer but asks the agent not to share it. The confidentiality extends beyond the
expiration of the listing agreement unless, at that time, the Seller gives written
permission to share it.:
11. The TREC promulgated Seller Financing Addendum states that if the buyer
does not furnish the required qualifying documentation within the time limit
allowed:
A. Seller may terminate the contract and keep the earnest money.
B. Seller may terminate the contract but must return the earnest money.
C. Seller must tell Buyer why he is terminating.
D. Buyer will be liable for the cost of the credit report.
Rationale: The correct answer is A. In a Seller Financed contract, the Seller acts
as the bank. Seller can ask for the same qualifying documents to be provided
that a bank or mortgage company requires. If the Buyer agrees to furnish these
