TEXAS REAL ESTATE ACTUAL PRACTICE EXAM
QUESTIONS COMPLETE ACCURATE REAL EXAM
QUESTIONS WITH WELL ELABORATED ANSWERS
AND RATIONALES (100% CORRECT VERIFIED
SOLUTIONS) GUARANTEED PASS A+|BRAND
NEW!2026-2027
What is a lien theory state in contrast to a title theory state?
a) A state in which liens are given priority over other encumbrances
b) A state in which a mortgage retains title to the property when a
mortgage lien is created.
c) A state in which the holder of a mortgage lien receives title to the
mortgage and property until the debt is satisfied.
d) A state in which liens must be recorded to be enforceable.
b) A state in which a mortgage retains title to the property when a
mortgage lien is created.
A property owner has an easement appurtenant on her property. One
day the property is sold to another party who is opposed to the
easement. Following the closing, this particular form of easement:
a) terminates.
b) Transfers with the property.
c) Transfers with the owner to a new property.
d) Becomes a license on the property.
b) Transfers with the property.
,What fundamental legal purpose is fulfilled by title records?
a) Keeping the county apprised of tax payments.
b) Preventing identity theft.
c) Giving constructive notice of one's rights and interests in the
property.
d) Assembling all relevant documents in a single place.
c) Giving constructive notice of one's rights and interests in the
property.
Real estate advertising must conform to regulatory standards and
requirements. One requirement is
a) A broker may only place blind ads in social media outlets.
b) A broker must have all advertising approved by the local real estate
board.
c) The advertising must not be deceptive.
d) Sales agents may only advertise in their own name.
c) The advertising must not be deceptive.
The three principal brokerage firms in a market agree to pay sales
agents 15% more than any other competitor currently in practice. This is
an example of
a) Collusion.
b) Price-fixing.
c) Allocation of markets.
d) Steering.
a) Collusion.
,Two leading agencies jointly agreed to raise commissions charge to
residential sellers to 7.5% of the sales price. Which of the following is
true?
a) This is a perfectly legitimate business practice.
b) The brokers have illegally fixed prices.
c) The brokers have allocated markets.
d) The brokers have engaged in legal collusion.
b) The brokers have illegally fixed prices.
A sale contract contains an open-ended financing contingency: if the
buyer cannot obtain financing within a reasonable time the deal is off.
Six months later the buyer still cannot secure financing. Which of the
following is true?
a) The seller may cancel the contract since it can be ruled invalid.
b) The buyer can continue indefinitely to seek financing, and the seller's
property must remain off the market since "reasonable" is not defined.
c) The escrow agent is entitled to the buyer's deposit.
d) The seller can force a lender to commit to a loan under fair financing
laws.
a) The seller may cancel the contract since it can be ruled invalid.
In the event of a buyer's default a provision for liquidated damages in a
sale contract enables the seller to:
a) sue the buyer for a person specific performance.
b) Force the buyer to quitclaim equitable title.
c) Sue the buyer for the broker's marketing expenses.
d) Claim the deposit as compensatory damages for the buyer's failure
to perform.
d) Claim the deposit as compensatory damages for the buyer's failure
to perform.
, Which of the following is true of an option to buy agreement?
a) The potential buyer, the optionee, is obligated to buy the property
once the option agreement is completed.
b) The optionor must perform if the optionee takes the option, but the
optionee is under no obligation to do so.
c) The contract can be executed at no cost to the optionee.
d) It is a bilateral agreement.
b) The optionor must perform if the optionee takes the option, but the
optionee is under no obligation to do so.
If a manufacturer that is the major employer in a small city moves its
operations to another city, it is reasonable to expect:
a) a fall in housing demand, but no other changes in the real estate
market.
b) A decline in demand for all types of real estate in the real estate
market.
c) An immediate fall in the demand for industrial real estate, but no
other changes in the real estate market.
d) An immediate decline in the prices for industrial and office real
estate, but no impact on the residential market.
b) A decline in demand for all types of real estate in the real estate
market.
QUESTIONS COMPLETE ACCURATE REAL EXAM
QUESTIONS WITH WELL ELABORATED ANSWERS
AND RATIONALES (100% CORRECT VERIFIED
SOLUTIONS) GUARANTEED PASS A+|BRAND
NEW!2026-2027
What is a lien theory state in contrast to a title theory state?
a) A state in which liens are given priority over other encumbrances
b) A state in which a mortgage retains title to the property when a
mortgage lien is created.
c) A state in which the holder of a mortgage lien receives title to the
mortgage and property until the debt is satisfied.
d) A state in which liens must be recorded to be enforceable.
b) A state in which a mortgage retains title to the property when a
mortgage lien is created.
A property owner has an easement appurtenant on her property. One
day the property is sold to another party who is opposed to the
easement. Following the closing, this particular form of easement:
a) terminates.
b) Transfers with the property.
c) Transfers with the owner to a new property.
d) Becomes a license on the property.
b) Transfers with the property.
,What fundamental legal purpose is fulfilled by title records?
a) Keeping the county apprised of tax payments.
b) Preventing identity theft.
c) Giving constructive notice of one's rights and interests in the
property.
d) Assembling all relevant documents in a single place.
c) Giving constructive notice of one's rights and interests in the
property.
Real estate advertising must conform to regulatory standards and
requirements. One requirement is
a) A broker may only place blind ads in social media outlets.
b) A broker must have all advertising approved by the local real estate
board.
c) The advertising must not be deceptive.
d) Sales agents may only advertise in their own name.
c) The advertising must not be deceptive.
The three principal brokerage firms in a market agree to pay sales
agents 15% more than any other competitor currently in practice. This is
an example of
a) Collusion.
b) Price-fixing.
c) Allocation of markets.
d) Steering.
a) Collusion.
,Two leading agencies jointly agreed to raise commissions charge to
residential sellers to 7.5% of the sales price. Which of the following is
true?
a) This is a perfectly legitimate business practice.
b) The brokers have illegally fixed prices.
c) The brokers have allocated markets.
d) The brokers have engaged in legal collusion.
b) The brokers have illegally fixed prices.
A sale contract contains an open-ended financing contingency: if the
buyer cannot obtain financing within a reasonable time the deal is off.
Six months later the buyer still cannot secure financing. Which of the
following is true?
a) The seller may cancel the contract since it can be ruled invalid.
b) The buyer can continue indefinitely to seek financing, and the seller's
property must remain off the market since "reasonable" is not defined.
c) The escrow agent is entitled to the buyer's deposit.
d) The seller can force a lender to commit to a loan under fair financing
laws.
a) The seller may cancel the contract since it can be ruled invalid.
In the event of a buyer's default a provision for liquidated damages in a
sale contract enables the seller to:
a) sue the buyer for a person specific performance.
b) Force the buyer to quitclaim equitable title.
c) Sue the buyer for the broker's marketing expenses.
d) Claim the deposit as compensatory damages for the buyer's failure
to perform.
d) Claim the deposit as compensatory damages for the buyer's failure
to perform.
, Which of the following is true of an option to buy agreement?
a) The potential buyer, the optionee, is obligated to buy the property
once the option agreement is completed.
b) The optionor must perform if the optionee takes the option, but the
optionee is under no obligation to do so.
c) The contract can be executed at no cost to the optionee.
d) It is a bilateral agreement.
b) The optionor must perform if the optionee takes the option, but the
optionee is under no obligation to do so.
If a manufacturer that is the major employer in a small city moves its
operations to another city, it is reasonable to expect:
a) a fall in housing demand, but no other changes in the real estate
market.
b) A decline in demand for all types of real estate in the real estate
market.
c) An immediate fall in the demand for industrial real estate, but no
other changes in the real estate market.
d) An immediate decline in the prices for industrial and office real
estate, but no impact on the residential market.
b) A decline in demand for all types of real estate in the real estate
market.
