PRINCIPLES OF REAL ESTATE 1 EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS | LATEST VERSION 2025/2026.
A sales agent or broker associate may perform duties as a real estate licensee under what
circumstance? - ANS While associated with and supervised by a broker.
What is the name of the part of the beach that is privately owned? - ANS Dry beach.
Real estate law covers general property law, real estate license law, the law of contracts,
landlord/tenant law, consumer protection, and: - ANS The law of agency
Which entity is charged with administering the laws of TRELA? - ANS The Texas Real Estate
Commission
What is the most common homeowners policy? - ANS The HO-B Policy
Which of the following is a right included with real property? - ANS Exclusion
Which keyword can be used to describe real property? - ANS Built-in. Built-in would describe
real property that is permanently affixed to the property.
Once signed, the listing agreement is a legally binding contract between: - ANS The listing
broker and the seller.
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,What is considered a passing grade for the state licensing exam for a real estate professional
who is seeking a brokers license? - ANS A 75% or greater.
Land, plus all things permanently attached to it naturally or artificially is: - ANS Real estate
The exemption to the Fair Housing Act that would normally apply that is moot when a real
estate agent represents : - ANS Owner occupied buildings with no more than four units.
Sally Mae is a real estate licensee who would like to become a realtor, what must she do? -
ANS Become a member of the NAR
What agency enforces fair housing laws? - ANS FHEO. The Fair Housing and Equal
Opportunity administers and enforces fair housing laws.
Which type of anti-trust violation involves two or more businesses conspiring against another? -
ANS Group boycotting
This type of housing is not considered real property: - ANS Cooperative
When a fair housing complaint is received, how long does TWCCRD have to begin investigating
and attempt to resolve the issue? - ANS 100 days. Once the complaint is received the
TWCCRD has 100 days.
What does it mean when the buyer signs and dates the sellers disclosure notice? - ANS The
buyer is acknowledging receipt of the disclosure.
When a business is organized as a partnership, - ANS General partners are jointly and
severally responsible for all business debts.
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, The payment of commission to a non-licensed individual for brokerage services is: -
ANS Illegally only if the person is not exempt from licensing law. Individuals who are exempt
from licensing law (Such as attorneys) may receive commissions for providing brokerage
services.
What type of a lien is a specific lien? - ANS Real property tax lien
In terms of encumbrances, what is a license? - ANS Permission without possession, interest
or ownership.
Property ownership for an indeterminable length of time is an example of what form of estate?
- ANS Freehold Estate
What is someone who evaluates the structures, systems and site conditions of homes for
potential buyers? - ANS Home inspector
Under TRELA, it is considered a misdemeanor for an individual who does not have a real estate
license to perform activities that require a real estate license. Each violation is punishable with
a fine of up to a maximum of: - ANS $5000.00
Which of the following is a single-family home with attached walls where the owner typically
own the land on which the home sits? - ANS A townhome
Your client is looking to buy her first home, she decides to make an offer on a bungalo that
belongs to another agents client. Your clients offer must be? - ANS In Writing
James creates a trust to hold a piece of real estate he owns, he directs a corporate fiduciary to
hold title to the real estate and provides instructions for the management, control, and
disposition of the real estate upon his death. Given that the trust only holds real estate, James
likely set up a: - ANS Testamentary
3 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS WITH 100% CORRECT
ANSWERS | LATEST VERSION 2025/2026.
A sales agent or broker associate may perform duties as a real estate licensee under what
circumstance? - ANS While associated with and supervised by a broker.
What is the name of the part of the beach that is privately owned? - ANS Dry beach.
Real estate law covers general property law, real estate license law, the law of contracts,
landlord/tenant law, consumer protection, and: - ANS The law of agency
Which entity is charged with administering the laws of TRELA? - ANS The Texas Real Estate
Commission
What is the most common homeowners policy? - ANS The HO-B Policy
Which of the following is a right included with real property? - ANS Exclusion
Which keyword can be used to describe real property? - ANS Built-in. Built-in would describe
real property that is permanently affixed to the property.
Once signed, the listing agreement is a legally binding contract between: - ANS The listing
broker and the seller.
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,What is considered a passing grade for the state licensing exam for a real estate professional
who is seeking a brokers license? - ANS A 75% or greater.
Land, plus all things permanently attached to it naturally or artificially is: - ANS Real estate
The exemption to the Fair Housing Act that would normally apply that is moot when a real
estate agent represents : - ANS Owner occupied buildings with no more than four units.
Sally Mae is a real estate licensee who would like to become a realtor, what must she do? -
ANS Become a member of the NAR
What agency enforces fair housing laws? - ANS FHEO. The Fair Housing and Equal
Opportunity administers and enforces fair housing laws.
Which type of anti-trust violation involves two or more businesses conspiring against another? -
ANS Group boycotting
This type of housing is not considered real property: - ANS Cooperative
When a fair housing complaint is received, how long does TWCCRD have to begin investigating
and attempt to resolve the issue? - ANS 100 days. Once the complaint is received the
TWCCRD has 100 days.
What does it mean when the buyer signs and dates the sellers disclosure notice? - ANS The
buyer is acknowledging receipt of the disclosure.
When a business is organized as a partnership, - ANS General partners are jointly and
severally responsible for all business debts.
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, The payment of commission to a non-licensed individual for brokerage services is: -
ANS Illegally only if the person is not exempt from licensing law. Individuals who are exempt
from licensing law (Such as attorneys) may receive commissions for providing brokerage
services.
What type of a lien is a specific lien? - ANS Real property tax lien
In terms of encumbrances, what is a license? - ANS Permission without possession, interest
or ownership.
Property ownership for an indeterminable length of time is an example of what form of estate?
- ANS Freehold Estate
What is someone who evaluates the structures, systems and site conditions of homes for
potential buyers? - ANS Home inspector
Under TRELA, it is considered a misdemeanor for an individual who does not have a real estate
license to perform activities that require a real estate license. Each violation is punishable with
a fine of up to a maximum of: - ANS $5000.00
Which of the following is a single-family home with attached walls where the owner typically
own the land on which the home sits? - ANS A townhome
Your client is looking to buy her first home, she decides to make an offer on a bungalo that
belongs to another agents client. Your clients offer must be? - ANS In Writing
James creates a trust to hold a piece of real estate he owns, he directs a corporate fiduciary to
hold title to the real estate and provides instructions for the management, control, and
disposition of the real estate upon his death. Given that the trust only holds real estate, James
likely set up a: - ANS Testamentary
3 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
