CHAMPIONS SCHOOL OF REAL ESTATE EXAM–COMPLETE
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1. How many total members serve on the Texas Real Estate Broker-Lawyer Committee,
and what is the distribution of its professional and public membership?
A. Nine members total, consisting of three brokers, three lawyers, and three public
representatives
B. Thirteen members total, consisting of six brokers appointed by the Commission, six lawyers
appointed by the President of the State Bar of Texas, and one public member appointed by the
Governor
C. Fifteen members total, consisting of eight brokers and seven attorneys
D. Seven members total, consisting of four real estate brokers and three real estate judges
Answer: B
The Texas Real Estate Broker-Lawyer Committee consists of thirteen members: six brokers
appointed by the Commission, six lawyers appointed by the State Bar president, and one public
member appointed by the governor, tasked with drafting and editing standard contract forms.
2. Which of the following core canons of professional ethics and conduct governs real estate
licensees in Texas under the rules of the Texas Real Estate Commission (TREC)?
A. Honesty, Trustworthiness, and Discretion
B. Fidelity, Integrity, and Competency
C. Transparency, Accountability, and Fairness
D. Confidentiality, Diligence, and Neutrality
Answer: B
TREC rules establish three specific canons of professional ethics and conduct for licensees:
Fidelity, Integrity, and Competency, which outline the agent's ethical duties to clients and the
public.
3. Under what statutory circumstance is a real estate licensee legally permitted to refer to
themselves as a "REALTOR"?
A. The moment they pass the state licensing exam and receive an active license number.
B. After they successfully complete two years of active sales agent apprenticeship.
C. Only when that licensee maintains active membership in the National Association of Realtors
(NAR).
D. Whenever they represent a buyer in a commercial property transaction.
,Answer: C
The term "REALTOR" is a federally registered collective membership mark owned by the
National Association of Realtors, and use is strictly restricted to members of the organization.
4. What is the primary legal relationship established between a real estate broker and a
client who signs a standard listing or representation agreement?
A. General agency relationship
B. Universal agency relationship
C. Special agency relationship
D. Subagency relationship
Answer: C
The agreement between a broker and a client is most often a special agency relationship,
meaning the agent is authorized to perform a specific act or transaction without binding the
client to broader business decisions.
5. Which professional trade association owns and operates local multiple listing services
(MLS) across many regions of the United States?
A. National Association of Realtors (NAR)
B. Certified Commercial Investment Member Institute (CCIM)
C. Building Owners and Managers Association (BOMA)
D. International Council of Shopping Centers (ICSC)
Answer: A
Local associations and boards affiliated with the National Association of Realtors own and
operate the regional multiple listing service databases utilized by agents to share property
listings.
6. The government rectangular survey system utilizes an overlay grid structure based on
principal meridians and base lines. How many square miles are contained within a
standard township in this system?
A. 6 square miles
B. 16 square miles
C. 36 square miles
D. 640 square miles
Answer: C
A standard township in the rectangular survey system measures 6 miles by 6 miles, containing
a total area of 36 square miles (or 36 sections, each being one square mile).
,7. How many square feet are contained within exactly one acre of land, keeping in mind
standard memory aids taught in real estate prep?
A. 27,225 square feet
B. 43,560 square feet
C. 640,000 square feet
D. 10,000 square feet
Answer: B
An acre contains 43,560 square feet of land, which can be easily recalled using memory
helpers such as four nuns driving thirty-five in a sixty-mile-per-hour zone (43560).
8. What is the statutory time limit under federal fair housing laws for an individual to file a
discrimination complaint directly with the Department of Housing and Urban
Development (HUD)?
A. 180 days
B. 1 year
C. 2 years
D. 5 years
Answer: B
An aggrieved person who believes they are a victim of housing discrimination has up to one
year from the date of the alleged discriminatory act to file an administrative complaint with
HUD.
9. In mortgage finance calculations, what does one "point" represent when charged by a
lender?
A. One percent (1%) of the total loan amount
B. Exactly one thousand dollars of the purchase price
C. One-tenth of one percent of the property appraised value
D. An annual flat processing fee unrelated to loan size
Answer: A
A discount or origination point equals one percent (1%) of the loan amount, often used by
borrowers to lower their interest rate or cover lender costs.
10. What is the term for water rights associated with land that abuts a flowing river,
stream, or moving body of water?
A. Littoral rights
B. Riparian rights
, C. Percolating rights
D. Appropriative rights
Answer: B
Riparian rights govern the use of flowing surface water by landowners whose properties
border a river or stream, granting reasonable use rights.
11. What terminology describes water rights belonging to property owners whose land
borders a static body of water such as a lake, sea, or ocean?
A. Riparian rights
B. Littoral rights
C. Avulsion rights
D. Sub-surface rights
Answer: B
Littoral rights pertain to landowners whose property borders large commercial lakes, seas, or
oceans, generally granting use up to the high-water mark.
12. What process describes the gradual increase of land area resulting from the natural
deposit of rock, sand, and soil by flowing water?
A. Erosion
B. Avulsion
C. Accretion
D. Reliction
Answer: C
Accretion is the gradual and imperceptible buildup of land along a water boundary caused by
natural deposits of soil, enlarging the owner's property.
13. What term is specifically used to describe the newly created dry land resulting from the
process of accretion?
A. Alluvion
B. Silt bed
C. Littoral shelf
D. Erosion plain
Answer: A
Alluvion refers to the actual solid earth or soil material that is deposited through accretion,
becoming the property of the adjacent landowner.
STUDY GUIDE | PRACTICE QUESTIONS AND ANSWERS-
RATIONALES | EXAM PREP | DOWNLOAD INSTANT PDF |
GUARANTEED PASS || LATEST EXAM 2026-2027
1. How many total members serve on the Texas Real Estate Broker-Lawyer Committee,
and what is the distribution of its professional and public membership?
A. Nine members total, consisting of three brokers, three lawyers, and three public
representatives
B. Thirteen members total, consisting of six brokers appointed by the Commission, six lawyers
appointed by the President of the State Bar of Texas, and one public member appointed by the
Governor
C. Fifteen members total, consisting of eight brokers and seven attorneys
D. Seven members total, consisting of four real estate brokers and three real estate judges
Answer: B
The Texas Real Estate Broker-Lawyer Committee consists of thirteen members: six brokers
appointed by the Commission, six lawyers appointed by the State Bar president, and one public
member appointed by the governor, tasked with drafting and editing standard contract forms.
2. Which of the following core canons of professional ethics and conduct governs real estate
licensees in Texas under the rules of the Texas Real Estate Commission (TREC)?
A. Honesty, Trustworthiness, and Discretion
B. Fidelity, Integrity, and Competency
C. Transparency, Accountability, and Fairness
D. Confidentiality, Diligence, and Neutrality
Answer: B
TREC rules establish three specific canons of professional ethics and conduct for licensees:
Fidelity, Integrity, and Competency, which outline the agent's ethical duties to clients and the
public.
3. Under what statutory circumstance is a real estate licensee legally permitted to refer to
themselves as a "REALTOR"?
A. The moment they pass the state licensing exam and receive an active license number.
B. After they successfully complete two years of active sales agent apprenticeship.
C. Only when that licensee maintains active membership in the National Association of Realtors
(NAR).
D. Whenever they represent a buyer in a commercial property transaction.
,Answer: C
The term "REALTOR" is a federally registered collective membership mark owned by the
National Association of Realtors, and use is strictly restricted to members of the organization.
4. What is the primary legal relationship established between a real estate broker and a
client who signs a standard listing or representation agreement?
A. General agency relationship
B. Universal agency relationship
C. Special agency relationship
D. Subagency relationship
Answer: C
The agreement between a broker and a client is most often a special agency relationship,
meaning the agent is authorized to perform a specific act or transaction without binding the
client to broader business decisions.
5. Which professional trade association owns and operates local multiple listing services
(MLS) across many regions of the United States?
A. National Association of Realtors (NAR)
B. Certified Commercial Investment Member Institute (CCIM)
C. Building Owners and Managers Association (BOMA)
D. International Council of Shopping Centers (ICSC)
Answer: A
Local associations and boards affiliated with the National Association of Realtors own and
operate the regional multiple listing service databases utilized by agents to share property
listings.
6. The government rectangular survey system utilizes an overlay grid structure based on
principal meridians and base lines. How many square miles are contained within a
standard township in this system?
A. 6 square miles
B. 16 square miles
C. 36 square miles
D. 640 square miles
Answer: C
A standard township in the rectangular survey system measures 6 miles by 6 miles, containing
a total area of 36 square miles (or 36 sections, each being one square mile).
,7. How many square feet are contained within exactly one acre of land, keeping in mind
standard memory aids taught in real estate prep?
A. 27,225 square feet
B. 43,560 square feet
C. 640,000 square feet
D. 10,000 square feet
Answer: B
An acre contains 43,560 square feet of land, which can be easily recalled using memory
helpers such as four nuns driving thirty-five in a sixty-mile-per-hour zone (43560).
8. What is the statutory time limit under federal fair housing laws for an individual to file a
discrimination complaint directly with the Department of Housing and Urban
Development (HUD)?
A. 180 days
B. 1 year
C. 2 years
D. 5 years
Answer: B
An aggrieved person who believes they are a victim of housing discrimination has up to one
year from the date of the alleged discriminatory act to file an administrative complaint with
HUD.
9. In mortgage finance calculations, what does one "point" represent when charged by a
lender?
A. One percent (1%) of the total loan amount
B. Exactly one thousand dollars of the purchase price
C. One-tenth of one percent of the property appraised value
D. An annual flat processing fee unrelated to loan size
Answer: A
A discount or origination point equals one percent (1%) of the loan amount, often used by
borrowers to lower their interest rate or cover lender costs.
10. What is the term for water rights associated with land that abuts a flowing river,
stream, or moving body of water?
A. Littoral rights
B. Riparian rights
, C. Percolating rights
D. Appropriative rights
Answer: B
Riparian rights govern the use of flowing surface water by landowners whose properties
border a river or stream, granting reasonable use rights.
11. What terminology describes water rights belonging to property owners whose land
borders a static body of water such as a lake, sea, or ocean?
A. Riparian rights
B. Littoral rights
C. Avulsion rights
D. Sub-surface rights
Answer: B
Littoral rights pertain to landowners whose property borders large commercial lakes, seas, or
oceans, generally granting use up to the high-water mark.
12. What process describes the gradual increase of land area resulting from the natural
deposit of rock, sand, and soil by flowing water?
A. Erosion
B. Avulsion
C. Accretion
D. Reliction
Answer: C
Accretion is the gradual and imperceptible buildup of land along a water boundary caused by
natural deposits of soil, enlarging the owner's property.
13. What term is specifically used to describe the newly created dry land resulting from the
process of accretion?
A. Alluvion
B. Silt bed
C. Littoral shelf
D. Erosion plain
Answer: A
Alluvion refers to the actual solid earth or soil material that is deposited through accretion,
becoming the property of the adjacent landowner.
