TEXAS REAL ESTATE EXAM
(STATE PORTION)
Questions and Answers
1. When terminating the sponsorship of a salesperson,
the broker must
A) notify the salesperson in writing of the termination
and immediately return the salesperson's license to the
Texas Real Estate Commission.
B) return the salesperson's license, along with a letter of
termination, to the Real Estate Commission.
C) do nothing as the salesperson is responsible for
notifying the Real Estate Commission of the change.
D) give the salesperson an official letter of termination
that the salesperson can send to the Real Estate
Commission.
Correct Answer A) notify the salesperson in writing of the
termination and immediately return the salesperson's
license to the Texas Real Estate Commission.
Explanation: Texas law requires brokers to notify the
,commission in writing and return the license immediately
upon termination of sponsorship.
2. In regards to rebates, all of the following are true
EXCEPT
A) accepting an undisclosed rebate or profit on an
expenditure for a principal demonstrates lack of ability to
perform with honesty, trustworthiness, and integrity.
B) title insurance companies are prohibited from paying
rebates to real estate licensees.
C) if a real estate licensee accepts a rebate or direct profit
on an expenditure made for a principal, it must be
disclosed to the party they represent.
D) it is illegal for a broker to rebate a portion of the
commission to a principal to a transaction.
Correct Answer D) It is illegal for a broker to rebate a
portion of the commission to a principal to a transaction.
Explanation: Actually, rebates to principals are
prohibited; the other options correctly state the rules
about rebates.
,3. How long may a temporary lease be used?
A) 90 days
B) 60 days
C) 30 days
D) 120 days
Correct Answer A) 90 days
Explanation: Texas law allows temporary leases up to 90
days without requiring a formal lease agreement.
4. In any real estate sales transaction that a broker
negotiates, the broker would be well advised to do all of
the following EXCEPT
A) provide the buyer the broker's personal opinion of the
condition of the seller's title to the property.
B) make sure that the closing statement is accurate and
that a copy of it is delivered to both the buyer and the
seller.
C) make sure that the written purchase and sales
agreement includes all of the terms of the parties'
agreement.
D) keep copies of all documents involved in the
, transaction in the broker's files for five years after the
year in which the transaction was closed.
Correct Answer A) Provide the buyer the broker's
personal opinion of the condition of the seller's title to
the property.
Explanation: Brokers should not give personal opinions
about title conditions; they should rely on title reports or
legal opinions.
5. In a situation where the Seller's Disclosure of
Property Condition is required, in order to have a
contract that cannot be terminated by a buyer for
failure to receive the disclosure on or before the
effective date of an executory contract, the seller's
agent should ensure the disclosure be delivered to the
buyer or the buyer's agent
A) prior to closing.
B) at the time of the home inspection.
C) at the time that the seller agrees to the offer.
D) prior to the buyer's making a written offer.
(STATE PORTION)
Questions and Answers
1. When terminating the sponsorship of a salesperson,
the broker must
A) notify the salesperson in writing of the termination
and immediately return the salesperson's license to the
Texas Real Estate Commission.
B) return the salesperson's license, along with a letter of
termination, to the Real Estate Commission.
C) do nothing as the salesperson is responsible for
notifying the Real Estate Commission of the change.
D) give the salesperson an official letter of termination
that the salesperson can send to the Real Estate
Commission.
Correct Answer A) notify the salesperson in writing of the
termination and immediately return the salesperson's
license to the Texas Real Estate Commission.
Explanation: Texas law requires brokers to notify the
,commission in writing and return the license immediately
upon termination of sponsorship.
2. In regards to rebates, all of the following are true
EXCEPT
A) accepting an undisclosed rebate or profit on an
expenditure for a principal demonstrates lack of ability to
perform with honesty, trustworthiness, and integrity.
B) title insurance companies are prohibited from paying
rebates to real estate licensees.
C) if a real estate licensee accepts a rebate or direct profit
on an expenditure made for a principal, it must be
disclosed to the party they represent.
D) it is illegal for a broker to rebate a portion of the
commission to a principal to a transaction.
Correct Answer D) It is illegal for a broker to rebate a
portion of the commission to a principal to a transaction.
Explanation: Actually, rebates to principals are
prohibited; the other options correctly state the rules
about rebates.
,3. How long may a temporary lease be used?
A) 90 days
B) 60 days
C) 30 days
D) 120 days
Correct Answer A) 90 days
Explanation: Texas law allows temporary leases up to 90
days without requiring a formal lease agreement.
4. In any real estate sales transaction that a broker
negotiates, the broker would be well advised to do all of
the following EXCEPT
A) provide the buyer the broker's personal opinion of the
condition of the seller's title to the property.
B) make sure that the closing statement is accurate and
that a copy of it is delivered to both the buyer and the
seller.
C) make sure that the written purchase and sales
agreement includes all of the terms of the parties'
agreement.
D) keep copies of all documents involved in the
, transaction in the broker's files for five years after the
year in which the transaction was closed.
Correct Answer A) Provide the buyer the broker's
personal opinion of the condition of the seller's title to
the property.
Explanation: Brokers should not give personal opinions
about title conditions; they should rely on title reports or
legal opinions.
5. In a situation where the Seller's Disclosure of
Property Condition is required, in order to have a
contract that cannot be terminated by a buyer for
failure to receive the disclosure on or before the
effective date of an executory contract, the seller's
agent should ensure the disclosure be delivered to the
buyer or the buyer's agent
A) prior to closing.
B) at the time of the home inspection.
C) at the time that the seller agrees to the offer.
D) prior to the buyer's making a written offer.
