Texas Real Estate National Exam Test
Prep Multiple Choice Questions and
Answers | Latest Version | 2025/2026 |
Correct & Verified
Which type of property ownership allows a person to own a property individually with full
control and rights?
A) Tenancy in common
B) Joint tenancy
C) Fee simple absolute
D) Life estate
✔✔C) Fee simple absolute
What is the primary purpose of a comparative market analysis (CMA)?
A) To determine mortgage interest rates
B) To evaluate a property's market value based on similar properties
C) To appraise commercial buildings
D) To assess tax liability
✔✔B) To evaluate a property's market value based on similar properties
Which type of listing agreement gives one broker the exclusive right to sell a property?
A) Open listing
B) Exclusive agency
1
,C) Exclusive right-to-sell
D) Net listing
✔✔C) Exclusive right-to-sell
What is the main difference between a real estate broker and a salesperson?
A) Brokers can only lease properties
B) Brokers can operate independently and manage agents
C) Salespersons can only work with commercial properties
D) Salespersons do not need licensing
✔✔B) Brokers can operate independently and manage agents
Which type of deed offers the greatest protection to the buyer?
A) Quitclaim deed
B) Special warranty deed
C) General warranty deed
D) Bargain and sale deed
✔✔C) General warranty deed
What is the primary role of the Texas Real Estate Commission (TREC)?
A) Set mortgage rates
B) Regulate and license real estate professionals in Texas
C) Approve property zoning
D) Sell state-owned real estate
2
,✔✔B) Regulate and license real estate professionals in Texas
Which document transfers ownership of real property from seller to buyer?
A) Listing agreement
B) Promissory note
C) Deed
D) Mortgage
✔✔C) Deed
What is the purpose of earnest money in a real estate transaction?
A) To pay property taxes
B) To show buyer’s good faith and commitment to purchase
C) To cover the broker’s commission
D) To pay for home inspections
✔✔B) To show buyer’s good faith and commitment to purchase
Which type of lease allows the tenant to pay a fixed rent plus property expenses like taxes and
insurance?
A) Gross lease
B) Net lease
C) Percentage lease
D) Variable lease
✔✔B) Net lease
3
, What is a “fixture” in real estate terms?
A) A movable personal item
B) An item attached to the property considered part of the real estate
C) A lease agreement
D) A mortgage clause
✔✔B) An item attached to the property considered part of the real estate
Which type of mortgage requires payments of both principal and interest over time?
A) Interest-only mortgage
B) Balloon mortgage
C) Amortized mortgage
D) Reverse mortgage
✔✔C) Amortized mortgage
What is the purpose of a home inspection in a real estate transaction?
A) To determine loan eligibility
B) To assess the condition of a property and identify potential problems
C) To appraise property value
D) To establish property taxes
✔✔B) To assess the condition of a property and identify potential problems
Which type of agency relationship represents the buyer in a real estate transaction?
4
Prep Multiple Choice Questions and
Answers | Latest Version | 2025/2026 |
Correct & Verified
Which type of property ownership allows a person to own a property individually with full
control and rights?
A) Tenancy in common
B) Joint tenancy
C) Fee simple absolute
D) Life estate
✔✔C) Fee simple absolute
What is the primary purpose of a comparative market analysis (CMA)?
A) To determine mortgage interest rates
B) To evaluate a property's market value based on similar properties
C) To appraise commercial buildings
D) To assess tax liability
✔✔B) To evaluate a property's market value based on similar properties
Which type of listing agreement gives one broker the exclusive right to sell a property?
A) Open listing
B) Exclusive agency
1
,C) Exclusive right-to-sell
D) Net listing
✔✔C) Exclusive right-to-sell
What is the main difference between a real estate broker and a salesperson?
A) Brokers can only lease properties
B) Brokers can operate independently and manage agents
C) Salespersons can only work with commercial properties
D) Salespersons do not need licensing
✔✔B) Brokers can operate independently and manage agents
Which type of deed offers the greatest protection to the buyer?
A) Quitclaim deed
B) Special warranty deed
C) General warranty deed
D) Bargain and sale deed
✔✔C) General warranty deed
What is the primary role of the Texas Real Estate Commission (TREC)?
A) Set mortgage rates
B) Regulate and license real estate professionals in Texas
C) Approve property zoning
D) Sell state-owned real estate
2
,✔✔B) Regulate and license real estate professionals in Texas
Which document transfers ownership of real property from seller to buyer?
A) Listing agreement
B) Promissory note
C) Deed
D) Mortgage
✔✔C) Deed
What is the purpose of earnest money in a real estate transaction?
A) To pay property taxes
B) To show buyer’s good faith and commitment to purchase
C) To cover the broker’s commission
D) To pay for home inspections
✔✔B) To show buyer’s good faith and commitment to purchase
Which type of lease allows the tenant to pay a fixed rent plus property expenses like taxes and
insurance?
A) Gross lease
B) Net lease
C) Percentage lease
D) Variable lease
✔✔B) Net lease
3
, What is a “fixture” in real estate terms?
A) A movable personal item
B) An item attached to the property considered part of the real estate
C) A lease agreement
D) A mortgage clause
✔✔B) An item attached to the property considered part of the real estate
Which type of mortgage requires payments of both principal and interest over time?
A) Interest-only mortgage
B) Balloon mortgage
C) Amortized mortgage
D) Reverse mortgage
✔✔C) Amortized mortgage
What is the purpose of a home inspection in a real estate transaction?
A) To determine loan eligibility
B) To assess the condition of a property and identify potential problems
C) To appraise property value
D) To establish property taxes
✔✔B) To assess the condition of a property and identify potential problems
Which type of agency relationship represents the buyer in a real estate transaction?
4
