Texas Real Estate Exam Questions with Correct Answers 100% Verified By Experts| Latest
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A deed is the instrument used to convey ownership of
A. personal property.
B. short-term use of real estate.
C. real property.
D. crops and other produce. Answer: C. A deed conveys ownership of real property;
personal property is conveyed by lease, bill of sale, or title.
At a closing, items such as property taxes and water bills are divided between buyer and seller
by the process known as
A. payoff.
B. proration
C. price fixing.
D. performance. Answer: B. Proration assigns credits and debits for various expenses to
buyer and seller during the settlement process.
The Civil Rights Act of 1866 prohibits discrimination in real estate based on
A. race.
B. race and gender.
C. handicap and country of origin.
D. gender and religion. Answer: A. The law that followed the close of the Civil War extended
equal rights in real property to members of all races.
Which of the following actions by a landlord is NOT discriminatory under the Federal Fair
Housing Act?
,A. refusing to lease in regards to age of children
B. based on the fact that the tenant has a pet
C. not showing property to tenants because of their country of origin
D. not leasing to people with certain physical handicaps Answer: B. A landlord may refuse to
lease property if the prospective tenant has a pet. Pets and pet owners are not protected under
Fair Housing Laws.
Which form or action of discrimination was NOT in violation of the Federal Fair Housing Act
when established in 1968?
A. sex
B. religion
C. color
D. national origin Answer: A. Discrimination based on a person's sex was added to fair
housing through the Housing and Community Development Act of 1974.
Which phrase in a lender advertisement to secure borrowers would be in violation of the Equal
Credit Opportunity Act?
A. low interest rates and fast loan approvals
B. assumable note for future ease of selling
C. must be under 60 years of age for 30 year term loans
D. rates will be adjusted according to number of minor children Answer: C. Age
discrimination is protected under the Equal Credit Opportunity Act. A lender must offer all loan
programs in its portfolio to any prospective borrower of legal age who applies for a loan.
177. In a real estate office, salespersons are generally considered the principal broker's
,A. subagents.
B. delegates.
C. clients.
D. designees. Answer: A. In most cases, associated licensees in an office are the supervising
broker's subagents.
A listing agent would be required to disclose all of the following EXCEPT
A. the sellers are facing bankruptcy if the house does not sell quickly.
B. the listing agent is Mrs. Seller's mother.
C. the furnace has a cracked heat exchanger and is leaking carbon monoxide.
D. the house was built before 1978 and may have lead-based paint. Answer: A. Material
defects must be disclosed. Relationship to the client must be disclosed. Personal confidential
information must never be disclosed.
Which advertisement by a broker is in compliance with the current Federal Fair Housing Act?
A. only single adult units
B. tenant must pay $35.00 lease application fee
C. no children under ten years of age
D. handicap alterations will not be made even if paid by tenant Answer: B. An application
fee paid by a prospective tenant is used by the landlord to examine a tenant's financial
qualifications. Landlords advertising singles only, age restrictions on children, and refusal to
make reasonable handicap alterations are discrimination
If a property generates a negative cash flow, in order to be an attractive investment to a
prospective purchaser
A. there must be a substantial down payment.
, B. there must be a large depreciable base.
C. there must be a substantial increase in property value.
D. there must be little deferred maintenance. Answer: C. A negative cash flow can be offset
by a substantial increase in property value. Even in ownership of a personal residence where
there is a negative cash flow, the house could be a good investment if it is sold at a substantial
gain over the original purchase.
Which of the following investment opportunities would involve the greatest risk even though it
would likely produce the highest rate of return?
A. before construction is started
B. during construction
C. after construction
D. upon occupancy by anchor tenants Answer: A. There is very little security in an
investment before construction is started, therefore, to attract an investor, the developer must
offer the greatest return.
A real estate salesperson may receive compensation from
A. any of the parties to a transaction.
B. any broker taking part in a transaction.
C. only the employing broker.
D. the property owner, as long as disclosure is made to all agents. Answer: C. A real estate
salesperson may receive compensation only from the employing broker.
When an agent does not fulfill the fiduciary duties and perform as promised, how may the
client end the relationship?
A. reliction by verbal notification
B. unilateral rescission in writing
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A deed is the instrument used to convey ownership of
A. personal property.
B. short-term use of real estate.
C. real property.
D. crops and other produce. Answer: C. A deed conveys ownership of real property;
personal property is conveyed by lease, bill of sale, or title.
At a closing, items such as property taxes and water bills are divided between buyer and seller
by the process known as
A. payoff.
B. proration
C. price fixing.
D. performance. Answer: B. Proration assigns credits and debits for various expenses to
buyer and seller during the settlement process.
The Civil Rights Act of 1866 prohibits discrimination in real estate based on
A. race.
B. race and gender.
C. handicap and country of origin.
D. gender and religion. Answer: A. The law that followed the close of the Civil War extended
equal rights in real property to members of all races.
Which of the following actions by a landlord is NOT discriminatory under the Federal Fair
Housing Act?
,A. refusing to lease in regards to age of children
B. based on the fact that the tenant has a pet
C. not showing property to tenants because of their country of origin
D. not leasing to people with certain physical handicaps Answer: B. A landlord may refuse to
lease property if the prospective tenant has a pet. Pets and pet owners are not protected under
Fair Housing Laws.
Which form or action of discrimination was NOT in violation of the Federal Fair Housing Act
when established in 1968?
A. sex
B. religion
C. color
D. national origin Answer: A. Discrimination based on a person's sex was added to fair
housing through the Housing and Community Development Act of 1974.
Which phrase in a lender advertisement to secure borrowers would be in violation of the Equal
Credit Opportunity Act?
A. low interest rates and fast loan approvals
B. assumable note for future ease of selling
C. must be under 60 years of age for 30 year term loans
D. rates will be adjusted according to number of minor children Answer: C. Age
discrimination is protected under the Equal Credit Opportunity Act. A lender must offer all loan
programs in its portfolio to any prospective borrower of legal age who applies for a loan.
177. In a real estate office, salespersons are generally considered the principal broker's
,A. subagents.
B. delegates.
C. clients.
D. designees. Answer: A. In most cases, associated licensees in an office are the supervising
broker's subagents.
A listing agent would be required to disclose all of the following EXCEPT
A. the sellers are facing bankruptcy if the house does not sell quickly.
B. the listing agent is Mrs. Seller's mother.
C. the furnace has a cracked heat exchanger and is leaking carbon monoxide.
D. the house was built before 1978 and may have lead-based paint. Answer: A. Material
defects must be disclosed. Relationship to the client must be disclosed. Personal confidential
information must never be disclosed.
Which advertisement by a broker is in compliance with the current Federal Fair Housing Act?
A. only single adult units
B. tenant must pay $35.00 lease application fee
C. no children under ten years of age
D. handicap alterations will not be made even if paid by tenant Answer: B. An application
fee paid by a prospective tenant is used by the landlord to examine a tenant's financial
qualifications. Landlords advertising singles only, age restrictions on children, and refusal to
make reasonable handicap alterations are discrimination
If a property generates a negative cash flow, in order to be an attractive investment to a
prospective purchaser
A. there must be a substantial down payment.
, B. there must be a large depreciable base.
C. there must be a substantial increase in property value.
D. there must be little deferred maintenance. Answer: C. A negative cash flow can be offset
by a substantial increase in property value. Even in ownership of a personal residence where
there is a negative cash flow, the house could be a good investment if it is sold at a substantial
gain over the original purchase.
Which of the following investment opportunities would involve the greatest risk even though it
would likely produce the highest rate of return?
A. before construction is started
B. during construction
C. after construction
D. upon occupancy by anchor tenants Answer: A. There is very little security in an
investment before construction is started, therefore, to attract an investor, the developer must
offer the greatest return.
A real estate salesperson may receive compensation from
A. any of the parties to a transaction.
B. any broker taking part in a transaction.
C. only the employing broker.
D. the property owner, as long as disclosure is made to all agents. Answer: C. A real estate
salesperson may receive compensation only from the employing broker.
When an agent does not fulfill the fiduciary duties and perform as promised, how may the
client end the relationship?
A. reliction by verbal notification
B. unilateral rescission in writing
