TEXAS REAL ESTATE BROKER EXAMINATION NEWEST EVALUATED EXAM
PRACTICE 100 QUESTIONS 2026-2027|ORIGINAL QUESTIONS & ANSWERS
|DETAILED RATIONALES |HINTED COMPLETE EXAM PREP GRADED
A+*INSTANT DOWNLOAD PDF*
1. A broker represents a seller under an exclusive-right-to-sell listing.
During the listing period, the seller personally finds a buyer who
purchases the property without the broker's assistance. Which
statement is generally correct?
A. The broker receives no compensation because the broker did not procure
the buyer
B. The seller owes compensation only if the buyer was introduced by the
broker
C. The broker may still be entitled to compensation because the listing grants
the broker the exclusive right to sell
D. The seller automatically terminates the listing by finding the buyer
Answer: C.
An exclusive-right-to-sell listing generally entitles the broker to compensation
if the property sells during the listing period, regardless of who finds the buyer,
subject to the specific contract terms.
2. A buyer's agent learns that the buyer would pay substantially more than
the amount stated in the written offer. The seller's agent asks whether
the buyer is willing to increase the offer. What should the buyer's agent
do?
A. Reveal the buyer's maximum price
B. Reveal the information because it benefits the seller
C. Refuse to disclose confidential information about the buyer's negotiating
position
D. Withdraw from the transaction immediately
Answer: C.
An agent owes fiduciary duties to the client, including confidentiality. The
buyer's negotiating position should not be disclosed without authorization.
3. A broker receives earnest money from a buyer. Before depositing the
funds, the broker uses the money temporarily to pay an office expense,
intending to replace it within two days. Which principle is most directly
violated?
,A. Puffing
B. Commingling
C. Novation
D. Subrogation
Answer: B.
Client funds must be kept separate from the broker's personal or business
funds. Using client money for business expenses constitutes improper
commingling and may also constitute conversion.
4. A property sells for $480,000 with a 6% total commission. The listing
broker and cooperating broker split the commission equally. How much
does each broker receive before any further splits?
A. $12,000
B. $14,400
C. $28,800
D. $57,600
Answer: C.
Total commission = $480,000 × 0.06 = $28,800. An equal split gives each broker
$14,400. Therefore, the correct calculation is actually $14,400.
Answer: B.
The total commission is $28,800, and half is $14,400.
5. A broker's salesperson receives an offer containing terms the seller
would probably dislike. The salesperson delays presenting the offer
because the salesperson expects a better offer tomorrow. Which duty
has most clearly been violated?
A. Duty to account
B. Duty of loyalty
C. Duty to present offers promptly
D. Duty to advertise
Answer: C.
An agent generally must promptly present offers to the client unless the client
has given lawful instructions otherwise.
6. Which event most directly terminates an agency relationship by
operation of law?
,A. The principal becomes dissatisfied with the agent
B. The agent changes offices
C. The principal dies
D. The property receives a second offer
Answer: C.
Death of the principal generally terminates the agency relationship because
the agent's authority is personal to the principal.
7. A broker wants to avoid personal liability for an agreement entered into
by an authorized agent. Which circumstance provides the strongest
protection?
A. The agent verbally tells the broker about the agreement
B. The agent acts within the scope of actual authority
C. The broker disagrees with the agreement afterward
D. The transaction produces no commission
Answer: B.
An authorized agent acting within the scope of actual authority binds the
principal according to the authority granted.
8. A buyer makes an offer that expires at 5:00 p.m. on Friday. The seller
signs the offer at 5:30 p.m. Friday and communicates acceptance to the
buyer. What is the usual result?
A. A binding contract automatically exists
B. The acceptance is generally ineffective because the offer expired
C. The seller may extend the offer unilaterally
D. The buyer is automatically liable for damages
Answer: B.
An offer generally must be accepted within the stated time. Acceptance after
expiration normally constitutes a new offer rather than acceptance of the
original offer.
9. A contract requires a buyer to obtain financing. The buyer makes a
reasonable effort but cannot obtain the required financing. The
contract's financing contingency permits termination. What is the most
appropriate result?
, A. The buyer must close regardless of financing
B. The seller automatically becomes the lender
C. The buyer may exercise the contractual contingency
D. The broker must personally provide the financing
Answer: C.
A contingency allocates the consequences of a specified event. If the
contractual financing condition is properly satisfied, the buyer may have a right
to terminate.
10. Which situation most clearly creates an implied agency?
A. A written listing agreement
B. A broker expressly agrees to represent a buyer
C. The parties' conduct demonstrates an agency relationship despite the
absence of an express agreement
D. A buyer attends an open house
Answer: C.
An implied agency can arise from the conduct and circumstances of the parties
even without an express agency agreement.
11. A property produces annual net operating income of $72,000. If an
investor requires an 8% capitalization rate, what is the indicated value?
A. $576,000
B. $720,000
C. $900,000
D. $960,000
Answer: C.
Value = NOI ÷ capitalization rate. $72,000 ÷ 0.08 = $900,000.
12. A property is purchased for $600,000 with a loan of $480,000. What is
the loan-to-value ratio?
A. 20%
B. 60%
C. 80%
D. 125%
PRACTICE 100 QUESTIONS 2026-2027|ORIGINAL QUESTIONS & ANSWERS
|DETAILED RATIONALES |HINTED COMPLETE EXAM PREP GRADED
A+*INSTANT DOWNLOAD PDF*
1. A broker represents a seller under an exclusive-right-to-sell listing.
During the listing period, the seller personally finds a buyer who
purchases the property without the broker's assistance. Which
statement is generally correct?
A. The broker receives no compensation because the broker did not procure
the buyer
B. The seller owes compensation only if the buyer was introduced by the
broker
C. The broker may still be entitled to compensation because the listing grants
the broker the exclusive right to sell
D. The seller automatically terminates the listing by finding the buyer
Answer: C.
An exclusive-right-to-sell listing generally entitles the broker to compensation
if the property sells during the listing period, regardless of who finds the buyer,
subject to the specific contract terms.
2. A buyer's agent learns that the buyer would pay substantially more than
the amount stated in the written offer. The seller's agent asks whether
the buyer is willing to increase the offer. What should the buyer's agent
do?
A. Reveal the buyer's maximum price
B. Reveal the information because it benefits the seller
C. Refuse to disclose confidential information about the buyer's negotiating
position
D. Withdraw from the transaction immediately
Answer: C.
An agent owes fiduciary duties to the client, including confidentiality. The
buyer's negotiating position should not be disclosed without authorization.
3. A broker receives earnest money from a buyer. Before depositing the
funds, the broker uses the money temporarily to pay an office expense,
intending to replace it within two days. Which principle is most directly
violated?
,A. Puffing
B. Commingling
C. Novation
D. Subrogation
Answer: B.
Client funds must be kept separate from the broker's personal or business
funds. Using client money for business expenses constitutes improper
commingling and may also constitute conversion.
4. A property sells for $480,000 with a 6% total commission. The listing
broker and cooperating broker split the commission equally. How much
does each broker receive before any further splits?
A. $12,000
B. $14,400
C. $28,800
D. $57,600
Answer: C.
Total commission = $480,000 × 0.06 = $28,800. An equal split gives each broker
$14,400. Therefore, the correct calculation is actually $14,400.
Answer: B.
The total commission is $28,800, and half is $14,400.
5. A broker's salesperson receives an offer containing terms the seller
would probably dislike. The salesperson delays presenting the offer
because the salesperson expects a better offer tomorrow. Which duty
has most clearly been violated?
A. Duty to account
B. Duty of loyalty
C. Duty to present offers promptly
D. Duty to advertise
Answer: C.
An agent generally must promptly present offers to the client unless the client
has given lawful instructions otherwise.
6. Which event most directly terminates an agency relationship by
operation of law?
,A. The principal becomes dissatisfied with the agent
B. The agent changes offices
C. The principal dies
D. The property receives a second offer
Answer: C.
Death of the principal generally terminates the agency relationship because
the agent's authority is personal to the principal.
7. A broker wants to avoid personal liability for an agreement entered into
by an authorized agent. Which circumstance provides the strongest
protection?
A. The agent verbally tells the broker about the agreement
B. The agent acts within the scope of actual authority
C. The broker disagrees with the agreement afterward
D. The transaction produces no commission
Answer: B.
An authorized agent acting within the scope of actual authority binds the
principal according to the authority granted.
8. A buyer makes an offer that expires at 5:00 p.m. on Friday. The seller
signs the offer at 5:30 p.m. Friday and communicates acceptance to the
buyer. What is the usual result?
A. A binding contract automatically exists
B. The acceptance is generally ineffective because the offer expired
C. The seller may extend the offer unilaterally
D. The buyer is automatically liable for damages
Answer: B.
An offer generally must be accepted within the stated time. Acceptance after
expiration normally constitutes a new offer rather than acceptance of the
original offer.
9. A contract requires a buyer to obtain financing. The buyer makes a
reasonable effort but cannot obtain the required financing. The
contract's financing contingency permits termination. What is the most
appropriate result?
, A. The buyer must close regardless of financing
B. The seller automatically becomes the lender
C. The buyer may exercise the contractual contingency
D. The broker must personally provide the financing
Answer: C.
A contingency allocates the consequences of a specified event. If the
contractual financing condition is properly satisfied, the buyer may have a right
to terminate.
10. Which situation most clearly creates an implied agency?
A. A written listing agreement
B. A broker expressly agrees to represent a buyer
C. The parties' conduct demonstrates an agency relationship despite the
absence of an express agreement
D. A buyer attends an open house
Answer: C.
An implied agency can arise from the conduct and circumstances of the parties
even without an express agency agreement.
11. A property produces annual net operating income of $72,000. If an
investor requires an 8% capitalization rate, what is the indicated value?
A. $576,000
B. $720,000
C. $900,000
D. $960,000
Answer: C.
Value = NOI ÷ capitalization rate. $72,000 ÷ 0.08 = $900,000.
12. A property is purchased for $600,000 with a loan of $480,000. What is
the loan-to-value ratio?
A. 20%
B. 60%
C. 80%
D. 125%
