Texas State Portion Real Estate
Exam Questions and Verified
Answers
1. Who is responsible for the acts of a salesperson?
a) The salesperson
b) The client
c) The public
d) The sponsoring broker
Correct Answer d) The sponsoring broker
Explanation: Under Texas law, the sponsoring broker is responsible for
the acts of the licensee they sponsor.
2. Failure on the part of the agent to advise the purchaser of real
property in writing that he should have the abstract covering the
property examined by an attorney of his own selection, or that he
should be furnished with a policy of title insurance shall:
a) Not have any consequences
b) Preclude the agent from earning a commission
c) Result in the buyer being responsible for title issues
d) Preclude payment of, or recovery of, any commission agreed to be
paid on the sale
Correct Answer d) Preclude payment of, or recovery of, any
commission agreed to be paid on the sale
,Explanation: Texas law requires agents to advise buyers to examine the
abstract or obtain title insurance; failure to do so can jeopardize
commission recovery.
3. An example of gratuitous agency is:
a) A licensed agent working for a commission
b) Working for free
c) An agent acting on behalf of a client for pay
d) A listing agreement
Correct Answer b) Working for free
Explanation: Gratuitous agency occurs when someone acts as an agent
without compensation.
4. All of the following are examples of different ways of giving real
estate legal description EXCEPT:
a) Metes and bounds
b) The recorded mailing address
c) Lot and block
d) Government survey method
Correct Answer b) The recorded mailing address
Explanation: Mailing addresses are not legal descriptions; legal
descriptions are precise land descriptions.
5. The sponsoring broker is responsible to TREC, the public, and the
clients for the acts of:
,a) The licensee’s assistants
b) The licensee’s clients
c) The licensee’s competitors
d) His sponsored salespeople
Correct Answer d) His sponsored salespeople
Explanation: The broker is responsible for acts of their sponsored
licensees.
6. The Texas Real Estate Broker-Lawyer Committee consists of:
a) 5 members
b) 9 members
c) 13 members
d) 15 members
Correct Answer c) 13 members
Explanation: The committee is composed of 13 members, including
attorneys and brokers.
7. A handwritten will signed by the testator but not witnessed is
known as a(n):
a) Formal will
b) Holographic will
c) Statutory will
d) Oral will
Correct Answer b) Holographic will
, Explanation: A holographic will is handwritten and signed by the
testator, not witnessed.
8. The only person who is allowed to give legal advice is:
a) The real estate agent
b) The broker
c) Attorney
d) The escrow officer
Correct Answer c) Attorney
Explanation: Only licensed attorneys can provide legal advice.
9. How does the Texas Real Estate License Act define the first face-to-
face meeting?
a) When the buyer first contacts the agent
b) When the offer is written
c) When substantive discussion occurs
d) When the listing agreement is signed
Correct Answer c) When substantive discussion occurs
Explanation: The first face-to-face meeting is when meaningful
discussion about real estate occurs.
10. An agency relationship is always created at the:
a) Broker level
b) Seller level
c) Buyer level
Exam Questions and Verified
Answers
1. Who is responsible for the acts of a salesperson?
a) The salesperson
b) The client
c) The public
d) The sponsoring broker
Correct Answer d) The sponsoring broker
Explanation: Under Texas law, the sponsoring broker is responsible for
the acts of the licensee they sponsor.
2. Failure on the part of the agent to advise the purchaser of real
property in writing that he should have the abstract covering the
property examined by an attorney of his own selection, or that he
should be furnished with a policy of title insurance shall:
a) Not have any consequences
b) Preclude the agent from earning a commission
c) Result in the buyer being responsible for title issues
d) Preclude payment of, or recovery of, any commission agreed to be
paid on the sale
Correct Answer d) Preclude payment of, or recovery of, any
commission agreed to be paid on the sale
,Explanation: Texas law requires agents to advise buyers to examine the
abstract or obtain title insurance; failure to do so can jeopardize
commission recovery.
3. An example of gratuitous agency is:
a) A licensed agent working for a commission
b) Working for free
c) An agent acting on behalf of a client for pay
d) A listing agreement
Correct Answer b) Working for free
Explanation: Gratuitous agency occurs when someone acts as an agent
without compensation.
4. All of the following are examples of different ways of giving real
estate legal description EXCEPT:
a) Metes and bounds
b) The recorded mailing address
c) Lot and block
d) Government survey method
Correct Answer b) The recorded mailing address
Explanation: Mailing addresses are not legal descriptions; legal
descriptions are precise land descriptions.
5. The sponsoring broker is responsible to TREC, the public, and the
clients for the acts of:
,a) The licensee’s assistants
b) The licensee’s clients
c) The licensee’s competitors
d) His sponsored salespeople
Correct Answer d) His sponsored salespeople
Explanation: The broker is responsible for acts of their sponsored
licensees.
6. The Texas Real Estate Broker-Lawyer Committee consists of:
a) 5 members
b) 9 members
c) 13 members
d) 15 members
Correct Answer c) 13 members
Explanation: The committee is composed of 13 members, including
attorneys and brokers.
7. A handwritten will signed by the testator but not witnessed is
known as a(n):
a) Formal will
b) Holographic will
c) Statutory will
d) Oral will
Correct Answer b) Holographic will
, Explanation: A holographic will is handwritten and signed by the
testator, not witnessed.
8. The only person who is allowed to give legal advice is:
a) The real estate agent
b) The broker
c) Attorney
d) The escrow officer
Correct Answer c) Attorney
Explanation: Only licensed attorneys can provide legal advice.
9. How does the Texas Real Estate License Act define the first face-to-
face meeting?
a) When the buyer first contacts the agent
b) When the offer is written
c) When substantive discussion occurs
d) When the listing agreement is signed
Correct Answer c) When substantive discussion occurs
Explanation: The first face-to-face meeting is when meaningful
discussion about real estate occurs.
10. An agency relationship is always created at the:
a) Broker level
b) Seller level
c) Buyer level
