TEXAS REAL ESTATE EXAM 300
QUESTIONS AND CORRECT ANSWERS
2025 SUCCESS GUARANTEED!
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
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
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
The sales comparison approach is the most commonly used appraisal method for
which type of property?
new construction
public special-use buildings
investor-owned apartments
,owner-occupied residential homes
owner-occupied residential homes
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
What does it mean if a contract is executory?
The terms of a contract have not yet been fully performed by both parties.
Both parties have fulfilled their duties in the contract.
The deadlines within the contract are strict and enforceable.
One party of the contract is required to perform, but the other is not.
The terms of a contract have not yet been fully performed by both parties.
What is required for all federally related loan programs?
PMI
lead-based paint inspection
appraisal
co-signer
appraisal
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
unenforecable contract
novation
executory contract
QUESTIONS AND CORRECT ANSWERS
2025 SUCCESS GUARANTEED!
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
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
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
The sales comparison approach is the most commonly used appraisal method for
which type of property?
new construction
public special-use buildings
investor-owned apartments
,owner-occupied residential homes
owner-occupied residential homes
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
What does it mean if a contract is executory?
The terms of a contract have not yet been fully performed by both parties.
Both parties have fulfilled their duties in the contract.
The deadlines within the contract are strict and enforceable.
One party of the contract is required to perform, but the other is not.
The terms of a contract have not yet been fully performed by both parties.
What is required for all federally related loan programs?
PMI
lead-based paint inspection
appraisal
co-signer
appraisal
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
unenforecable contract
novation
executory contract
