TEXAS REAL ESTATE EXAM WITH CLEAR AND
ELABORATE QUESTIONS AND ANSWERS GRADED A+
GUARANTEED PASS 2025-2026
If a listing agent does not have their client fill out the TREC Seller's Disclosure Notice:
They are in violation of TREC rules for not using promulgated forms.
They need to have the seller fill out a separate but equivalent property disclosure form.
They have no other acceptable way for their client to fulfill their property disclosure duty.
They are within their rights as Texas is a "caveat emptor" state.
They need to have the seller fill out a separate but equivalent property disclosure form.
With respect to the handling of a client or customer's money by a broker or sales agent,
what is meant by "conversion"?
the use of a client or customer’s money for the broker or agent's own purposes
the deposit of a client or customer's money into a trust fund
the moving of a client or customer's money from a trust fund to an escrow account
the mixing of a client or customer's money with that of a broker or sales agent
the use of a client or customer’s money for the broker or agent's own purposes
,A contract is described as voidable if at least one party has the option to:
rescind the contract
perform under the terms of the contract
extend the deadline for performance
assign the contract to someone else
rescind the contract
Which of these scenarios violates fair housing law?
refusing to rent an apartment to a person who has been convicted of selling illegal drugs
religious organization restricting their housing units to only people of the same faith
denying a family with children an apartment in a senior citizen community
screening buyers based on race at the request of the client selling their primary residence
screening buyers based on race at the request of the client selling their primary residence
The income approach is a method of:
determining how much it would cost to replace the building, minus the depreciation, plus
value of the land
estimating value by adding up the value of everything that goes into the cost of the property
,estimating value by comparing the subject property to the sales prices of similar properties in
the same market area
estimating the property value based on the amount of money it produces for the owner
estimating the property value based on the amount of money it produces for the owner
What is a court order requiring all parties to carry out the promises stipulated in a
contract?
punitive damages
specific performance
forfeiture
rescission
specific performance
Which of these would most likely represent the unauthorized practice of law by a
licensee?
telling a client what their options are during negotiations
suggesting a client talk to an attorney
directing a client to read a contract in its entirety
advising a client not to order an abstract of title because title appears to be clear
, advising a client not to order an abstract of title because title appears to be clear
What is the difference between MIP and PMI?
MIP applies to FHA loans; PMI applies to conventional loans.
PMI applies to FHA loans; MIP applies to conventional loans.
MIP is mortgage insurance, and PMI is the margin of an adjustable-rate loan.
MIP payments apply to private loans and are typically much larger than PMI payments.
MIP applies to FHA loans; PMI applies to conventional loans.
A contract that has not yet been fully performed is a(n):
executory contract
unilateral contract
unenforceable contract
novation
executory contract
A listing agreement should be in writing so that it:
can prevent acts of misrepresentation
ELABORATE QUESTIONS AND ANSWERS GRADED A+
GUARANTEED PASS 2025-2026
If a listing agent does not have their client fill out the TREC Seller's Disclosure Notice:
They are in violation of TREC rules for not using promulgated forms.
They need to have the seller fill out a separate but equivalent property disclosure form.
They have no other acceptable way for their client to fulfill their property disclosure duty.
They are within their rights as Texas is a "caveat emptor" state.
They need to have the seller fill out a separate but equivalent property disclosure form.
With respect to the handling of a client or customer's money by a broker or sales agent,
what is meant by "conversion"?
the use of a client or customer’s money for the broker or agent's own purposes
the deposit of a client or customer's money into a trust fund
the moving of a client or customer's money from a trust fund to an escrow account
the mixing of a client or customer's money with that of a broker or sales agent
the use of a client or customer’s money for the broker or agent's own purposes
,A contract is described as voidable if at least one party has the option to:
rescind the contract
perform under the terms of the contract
extend the deadline for performance
assign the contract to someone else
rescind the contract
Which of these scenarios violates fair housing law?
refusing to rent an apartment to a person who has been convicted of selling illegal drugs
religious organization restricting their housing units to only people of the same faith
denying a family with children an apartment in a senior citizen community
screening buyers based on race at the request of the client selling their primary residence
screening buyers based on race at the request of the client selling their primary residence
The income approach is a method of:
determining how much it would cost to replace the building, minus the depreciation, plus
value of the land
estimating value by adding up the value of everything that goes into the cost of the property
,estimating value by comparing the subject property to the sales prices of similar properties in
the same market area
estimating the property value based on the amount of money it produces for the owner
estimating the property value based on the amount of money it produces for the owner
What is a court order requiring all parties to carry out the promises stipulated in a
contract?
punitive damages
specific performance
forfeiture
rescission
specific performance
Which of these would most likely represent the unauthorized practice of law by a
licensee?
telling a client what their options are during negotiations
suggesting a client talk to an attorney
directing a client to read a contract in its entirety
advising a client not to order an abstract of title because title appears to be clear
, advising a client not to order an abstract of title because title appears to be clear
What is the difference between MIP and PMI?
MIP applies to FHA loans; PMI applies to conventional loans.
PMI applies to FHA loans; MIP applies to conventional loans.
MIP is mortgage insurance, and PMI is the margin of an adjustable-rate loan.
MIP payments apply to private loans and are typically much larger than PMI payments.
MIP applies to FHA loans; PMI applies to conventional loans.
A contract that has not yet been fully performed is a(n):
executory contract
unilateral contract
unenforceable contract
novation
executory contract
A listing agreement should be in writing so that it:
can prevent acts of misrepresentation
