PRINCIPLES OF REAL ESTATE 1 EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS | LATEST VERSION 2025/2026.
All of the following violate the Texas Real Estate License Act, EXCEPT: - ANS Disclosing all
known facts pertaining to a property to a client
The aspect of the real estate business that is concerned with bringing together the parties and
completing the transactions is: - ANS brokerage
An attorney from another state must have a Texas real estate license to receive a commission
for a real estate transaction in Texas. - ANS true
all of the following are true about a Texas homestead, except: - ANS homestead protection
can be waived in writing
ad valorem taxes: - ANS Are according to value, Create the highest priority lien on real
property, Are always paid first at a foreclosure sale
Which real estate contract is the exception to the Statute of Frauds? - ANS a lease for one
year or less
Factors that affect homeowners insurance premiums can include which of the following? -
ANS age and condition of the home, location, the policyholder's claims history
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Which of the following is required for a lot and block description of a property? - ANS a
recorded plat
integrity is best described as: - ANS The duty of a licensee to employ prudence and caution
so as to avoid misrepresentation in any way
When a holdover tenant refuses to leave and is not paying rent his interest in the property is
called: - ANS tenancy at sufferance
steering is: - ANS Directing buyers to or away from a particular neighborhood based on
protected categories
crops are: - ANS emblements
when a Texas real estate licensee is in inactive status: - ANS he is responsible for renewal
fees
permanent additions to land are called: - ANS improvements
When a property owner has the right to use water from a river or stream that borders his land
he is said to have: - ANS riparian rights
the recovery trust acount: - ANS (a) Protects consumers who suffer a loss due to the illegal
acts of licensees, Has two maximum payment amounts: $50,000 per transaction and $100,000
per licensee, Must transfer any amount in excess of $3.5 million to the State's General Fund
Which of the following terms describes the process of real property becoming personal
property? - ANS severance
Which of the following is required for a Government Survey System description of land? -
ANS sections, townships,
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS WITH 100% CORRECT
ANSWERS | LATEST VERSION 2025/2026.
All of the following violate the Texas Real Estate License Act, EXCEPT: - ANS Disclosing all
known facts pertaining to a property to a client
The aspect of the real estate business that is concerned with bringing together the parties and
completing the transactions is: - ANS brokerage
An attorney from another state must have a Texas real estate license to receive a commission
for a real estate transaction in Texas. - ANS true
all of the following are true about a Texas homestead, except: - ANS homestead protection
can be waived in writing
ad valorem taxes: - ANS Are according to value, Create the highest priority lien on real
property, Are always paid first at a foreclosure sale
Which real estate contract is the exception to the Statute of Frauds? - ANS a lease for one
year or less
Factors that affect homeowners insurance premiums can include which of the following? -
ANS age and condition of the home, location, the policyholder's claims history
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Which of the following is required for a lot and block description of a property? - ANS a
recorded plat
integrity is best described as: - ANS The duty of a licensee to employ prudence and caution
so as to avoid misrepresentation in any way
When a holdover tenant refuses to leave and is not paying rent his interest in the property is
called: - ANS tenancy at sufferance
steering is: - ANS Directing buyers to or away from a particular neighborhood based on
protected categories
crops are: - ANS emblements
when a Texas real estate licensee is in inactive status: - ANS he is responsible for renewal
fees
permanent additions to land are called: - ANS improvements
When a property owner has the right to use water from a river or stream that borders his land
he is said to have: - ANS riparian rights
the recovery trust acount: - ANS (a) Protects consumers who suffer a loss due to the illegal
acts of licensees, Has two maximum payment amounts: $50,000 per transaction and $100,000
per licensee, Must transfer any amount in excess of $3.5 million to the State's General Fund
Which of the following terms describes the process of real property becoming personal
property? - ANS severance
Which of the following is required for a Government Survey System description of land? -
ANS sections, townships,
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
