Trending! Texas Real Estate National
Exam prep- questions & 100% verified
answers
A buyer signs a purchase agreement but later discovers the seller misrepresented property
boundaries. What legal concept is most relevant?
A. Caveat emptor
B. Fraudulent misrepresentation ✔️✔️
C. Eminent domain
D. Escheat
Which type of listing gives a broker commission regardless of who sells the property?
A. Open listing
B. Exclusive agency listing
C. Exclusive right-to-sell listing ✔️✔️
D. Net listing
What is the primary purpose of the Truth in Lending Act (TILA)?
A. Regulate zoning laws
B. Ensure accurate property taxes
C. Disclose loan costs and terms ✔️✔️
D. Control rent prices
A property owner dies without a will and no heirs. What happens to the property?
A. Adverse possession
B. Escheat ✔️✔️
C. Eminent domain
D. Foreclosure
Which form of ownership allows survivorship rights?
A. Tenancy in common
B. Joint tenancy ✔️✔️
C. Community property
D. Leasehold estate
A real estate agent represents both buyer and seller in the same transaction with consent. What is
this called?
A. Single agency
B. Dual agency ✔️✔️
C. Subagency
D. Fiduciary breach
1
,What does a deed primarily do?
A. Transfers title ✔️✔️
B. Secures a loan
C. Provides insurance
D. Lists property taxes
Which of the following is considered personal property?
A. Built-in cabinets
B. Light fixtures
C. Refrigerator not attached ✔️✔️
D. Central heating system
What is the purpose of zoning laws?
A. Increase property taxes
B. Control land use ✔️✔️
C. Transfer ownership
D. Regulate mortgages
Which type of mortgage allows adjustable interest rates?
A. Fixed-rate mortgage
B. Adjustable-rate mortgage ✔️✔️
C. Balloon mortgage
D. Reverse mortgage
What is earnest money?
A. Loan interest
B. Deposit showing buyer’s intent ✔️✔️
C. Commission fee
D. Insurance premium
Which government entity enforces fair housing laws?
A. IRS
B. HUD ✔️✔️
C. FHA
D. SEC
What does PMI stand for?
A. Property management insurance
B. Private mortgage insurance ✔️✔️
C. Public mortgage index
D. Primary mortgage interest
A lease that ends automatically at a specified date is called:
A. Periodic tenancy
B. Tenancy at will
2
, C. Estate for years ✔️✔️
D. Tenancy at sufferance
Which appraisal principle states that value is affected by surrounding properties?
A. Contribution
B. Substitution
C. Conformity ✔️✔️
D. Anticipation
What is a lien?
A. Ownership transfer
B. Legal claim against property ✔️✔️
C. Tax deduction
D. Lease agreement
What is the purpose of title insurance?
A. Protect lender only
B. Protect against title defects ✔️✔️
C. Cover property damages
D. Pay property taxes
Which type of contract must be in writing to be enforceable?
A. Oral lease under one year
B. Real estate sales contract ✔️✔️
C. Verbal agreement
D. Casual promise
What does “fee simple” ownership mean?
A. Temporary ownership
B. Highest ownership interest ✔️✔️
C. Leasehold interest
D. Shared ownership
Which financing method involves seller acting as lender?
A. FHA loan
B. VA loan
C. Seller financing ✔️✔️
D. Conventional loan
What is a contingency in a contract?
A. Mandatory clause
B. Condition that must be met ✔️✔️
C. Penalty fee
D. Tax requirement
3
Exam prep- questions & 100% verified
answers
A buyer signs a purchase agreement but later discovers the seller misrepresented property
boundaries. What legal concept is most relevant?
A. Caveat emptor
B. Fraudulent misrepresentation ✔️✔️
C. Eminent domain
D. Escheat
Which type of listing gives a broker commission regardless of who sells the property?
A. Open listing
B. Exclusive agency listing
C. Exclusive right-to-sell listing ✔️✔️
D. Net listing
What is the primary purpose of the Truth in Lending Act (TILA)?
A. Regulate zoning laws
B. Ensure accurate property taxes
C. Disclose loan costs and terms ✔️✔️
D. Control rent prices
A property owner dies without a will and no heirs. What happens to the property?
A. Adverse possession
B. Escheat ✔️✔️
C. Eminent domain
D. Foreclosure
Which form of ownership allows survivorship rights?
A. Tenancy in common
B. Joint tenancy ✔️✔️
C. Community property
D. Leasehold estate
A real estate agent represents both buyer and seller in the same transaction with consent. What is
this called?
A. Single agency
B. Dual agency ✔️✔️
C. Subagency
D. Fiduciary breach
1
,What does a deed primarily do?
A. Transfers title ✔️✔️
B. Secures a loan
C. Provides insurance
D. Lists property taxes
Which of the following is considered personal property?
A. Built-in cabinets
B. Light fixtures
C. Refrigerator not attached ✔️✔️
D. Central heating system
What is the purpose of zoning laws?
A. Increase property taxes
B. Control land use ✔️✔️
C. Transfer ownership
D. Regulate mortgages
Which type of mortgage allows adjustable interest rates?
A. Fixed-rate mortgage
B. Adjustable-rate mortgage ✔️✔️
C. Balloon mortgage
D. Reverse mortgage
What is earnest money?
A. Loan interest
B. Deposit showing buyer’s intent ✔️✔️
C. Commission fee
D. Insurance premium
Which government entity enforces fair housing laws?
A. IRS
B. HUD ✔️✔️
C. FHA
D. SEC
What does PMI stand for?
A. Property management insurance
B. Private mortgage insurance ✔️✔️
C. Public mortgage index
D. Primary mortgage interest
A lease that ends automatically at a specified date is called:
A. Periodic tenancy
B. Tenancy at will
2
, C. Estate for years ✔️✔️
D. Tenancy at sufferance
Which appraisal principle states that value is affected by surrounding properties?
A. Contribution
B. Substitution
C. Conformity ✔️✔️
D. Anticipation
What is a lien?
A. Ownership transfer
B. Legal claim against property ✔️✔️
C. Tax deduction
D. Lease agreement
What is the purpose of title insurance?
A. Protect lender only
B. Protect against title defects ✔️✔️
C. Cover property damages
D. Pay property taxes
Which type of contract must be in writing to be enforceable?
A. Oral lease under one year
B. Real estate sales contract ✔️✔️
C. Verbal agreement
D. Casual promise
What does “fee simple” ownership mean?
A. Temporary ownership
B. Highest ownership interest ✔️✔️
C. Leasehold interest
D. Shared ownership
Which financing method involves seller acting as lender?
A. FHA loan
B. VA loan
C. Seller financing ✔️✔️
D. Conventional loan
What is a contingency in a contract?
A. Mandatory clause
B. Condition that must be met ✔️✔️
C. Penalty fee
D. Tax requirement
3
