Texas
Broker Licensing Exam
Final Assessment Review
(With Solutions)
2025
1
,1. A husband and wife in Texas take title as “community property with
right of survivorship.” When one spouse dies, what happens to the
decedent’s share?
A. It passes by will or intestacy law
B. It vests automatically in the surviving spouse
C. It becomes a tenancy in common
D. It escheats to the state
Correct ANS: B. It vests automatically in the surviving spouse
Rationale: Community property with right of survivorship bypasses
probate, giving full title to the survivor at death.
2. Which deed offers the grantor the widest covenants of title for the
entire chain of ownership in Texas?
A. Special warranty deed
B. Quitclaim deed
C. General warranty deed
D. Bargain and sale deed
Correct ANS: C. General warranty deed
Rationale: A general warranty deed contains present and future
covenants covering all title defects, regardless of when they arose.
3. Under Texas’s race-notice recording statute, a subsequent purchaser
prevails over a prior unrecorded deed only if the purchaser:
A. Records first, regardless of notice
B. Pays valuable consideration and records first without notice
C. Records within 30 days and gives notice
D. Provides actual notice to the grantor
Correct ANS: B. Pays valuable consideration and records first without
notice
Rationale: Race-notice protects a bona fide purchaser who acquires
2
, title without notice of prior interests and records first.
4. An adverse possessor under color of title in Texas must occupy the
land for at least:
A. Three years, pay taxes, and cultivate the land
B. Five years, without any additional requirements
C. Ten years, under a claim of right
D. Twenty-five years, with payment of taxes
Correct ANS: A. Three years, pay taxes, and cultivate the land
Rationale: Three-year statutes under color of title require payment of
taxes, cultivation, and valid color of title.
5. An appraiser using the cost approach estimated reproduction cost at
\$300,000, accrued depreciation at 15%, and land value at \$80,000. The
indicated property value is:
A. \$330,000
B. \$335,000
C. \$305,000
D. \$320,000
Correct ANS: A. \$330,000
Rationale: Value = (Reproduction Cost × (1−Depreciation)) + Land =
\$300,000×0.85 + \$80,000 = \$255,000 + \$80,000 = \$335,000—Oops,
calculation yields \$335,000.
Correct ANS (Revised): B. \$335,000
Rationale: \$300,000 × 0.85 = \$255,000; plus \$80,000 land =
\$335,000.
6. A 10-unit apartment building produces \$120,000 net operating
income. If similar properties sell at a 7.5% capitalization rate, the value by
the income approach is:
A. \$1,200,000
B. \$1,333,333
3
Broker Licensing Exam
Final Assessment Review
(With Solutions)
2025
1
,1. A husband and wife in Texas take title as “community property with
right of survivorship.” When one spouse dies, what happens to the
decedent’s share?
A. It passes by will or intestacy law
B. It vests automatically in the surviving spouse
C. It becomes a tenancy in common
D. It escheats to the state
Correct ANS: B. It vests automatically in the surviving spouse
Rationale: Community property with right of survivorship bypasses
probate, giving full title to the survivor at death.
2. Which deed offers the grantor the widest covenants of title for the
entire chain of ownership in Texas?
A. Special warranty deed
B. Quitclaim deed
C. General warranty deed
D. Bargain and sale deed
Correct ANS: C. General warranty deed
Rationale: A general warranty deed contains present and future
covenants covering all title defects, regardless of when they arose.
3. Under Texas’s race-notice recording statute, a subsequent purchaser
prevails over a prior unrecorded deed only if the purchaser:
A. Records first, regardless of notice
B. Pays valuable consideration and records first without notice
C. Records within 30 days and gives notice
D. Provides actual notice to the grantor
Correct ANS: B. Pays valuable consideration and records first without
notice
Rationale: Race-notice protects a bona fide purchaser who acquires
2
, title without notice of prior interests and records first.
4. An adverse possessor under color of title in Texas must occupy the
land for at least:
A. Three years, pay taxes, and cultivate the land
B. Five years, without any additional requirements
C. Ten years, under a claim of right
D. Twenty-five years, with payment of taxes
Correct ANS: A. Three years, pay taxes, and cultivate the land
Rationale: Three-year statutes under color of title require payment of
taxes, cultivation, and valid color of title.
5. An appraiser using the cost approach estimated reproduction cost at
\$300,000, accrued depreciation at 15%, and land value at \$80,000. The
indicated property value is:
A. \$330,000
B. \$335,000
C. \$305,000
D. \$320,000
Correct ANS: A. \$330,000
Rationale: Value = (Reproduction Cost × (1−Depreciation)) + Land =
\$300,000×0.85 + \$80,000 = \$255,000 + \$80,000 = \$335,000—Oops,
calculation yields \$335,000.
Correct ANS (Revised): B. \$335,000
Rationale: \$300,000 × 0.85 = \$255,000; plus \$80,000 land =
\$335,000.
6. A 10-unit apartment building produces \$120,000 net operating
income. If similar properties sell at a 7.5% capitalization rate, the value by
the income approach is:
A. \$1,200,000
B. \$1,333,333
3
