Texas Real Estate State Exam
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is the primary purpose of the Texas Real Estate Commission (TREC)?
✔✔To regulate real estate professionals and protect the public through licensing and
enforcement of state laws.
Which type of property is considered real property?
✔✔Land and anything permanently attached to it, such as buildings or fixtures.
What is the main duty of a real estate agent to a client?
✔✔To act in the client’s best interest, providing honesty, loyalty, and full disclosure.
Which document officially transfers ownership of real estate?
✔✔A deed.
What does a deed of trust do in a real estate transaction?
✔✔Secures a loan by transferring legal title to a trustee until the debt is paid.
What is the difference between a lien and a mortgage?
✔✔A lien is a legal claim on property for debt, while a mortgage is a specific lien securing a
loan.
1
,Which type of listing agreement guarantees commission to the broker only if they sell the
property?
✔✔Exclusive right-to-sell listing.
What is earnest money in a real estate contract?
✔✔A deposit showing the buyer’s good faith and commitment to the transaction.
Which law requires sellers to disclose known property defects?
✔✔Texas Property Code and the Seller’s Disclosure Notice requirements.
What is the primary function of an escrow account?
✔✔To hold funds, such as earnest money or security deposits, safely until transaction conditions
are met.
Which type of ownership allows multiple individuals to own a property with the right of
survivorship?
✔✔Joint tenancy.
What is the purpose of a title search in a real estate transaction?
✔✔To verify legal ownership and identify any liens, encumbrances, or claims on the property.
Which type of agent represents the seller exclusively?
2
, ✔✔Listing agent.
What is the main difference between real property and personal property?
✔✔Real property is immovable and attached to land; personal property is movable.
Which financial instrument represents a borrower’s promise to repay a loan?
✔✔Promissory note.
What does marketable title mean?
✔✔A title free from significant defects, liens, or legal questions, allowing safe transfer.
Which government entity enforces fair housing laws in Texas?
✔✔The Texas Workforce Commission Civil Rights Division (TWC-CRD) and HUD.
What is the primary purpose of a survey in real estate?
✔✔To determine property boundaries and locate improvements relative to those boundaries.
Which type of lease allows the tenant to pay a fixed rent plus expenses such as taxes and
insurance?
✔✔Triple net lease (NNN).
What is a common contingency in a real estate sales contract?
3
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is the primary purpose of the Texas Real Estate Commission (TREC)?
✔✔To regulate real estate professionals and protect the public through licensing and
enforcement of state laws.
Which type of property is considered real property?
✔✔Land and anything permanently attached to it, such as buildings or fixtures.
What is the main duty of a real estate agent to a client?
✔✔To act in the client’s best interest, providing honesty, loyalty, and full disclosure.
Which document officially transfers ownership of real estate?
✔✔A deed.
What does a deed of trust do in a real estate transaction?
✔✔Secures a loan by transferring legal title to a trustee until the debt is paid.
What is the difference between a lien and a mortgage?
✔✔A lien is a legal claim on property for debt, while a mortgage is a specific lien securing a
loan.
1
,Which type of listing agreement guarantees commission to the broker only if they sell the
property?
✔✔Exclusive right-to-sell listing.
What is earnest money in a real estate contract?
✔✔A deposit showing the buyer’s good faith and commitment to the transaction.
Which law requires sellers to disclose known property defects?
✔✔Texas Property Code and the Seller’s Disclosure Notice requirements.
What is the primary function of an escrow account?
✔✔To hold funds, such as earnest money or security deposits, safely until transaction conditions
are met.
Which type of ownership allows multiple individuals to own a property with the right of
survivorship?
✔✔Joint tenancy.
What is the purpose of a title search in a real estate transaction?
✔✔To verify legal ownership and identify any liens, encumbrances, or claims on the property.
Which type of agent represents the seller exclusively?
2
, ✔✔Listing agent.
What is the main difference between real property and personal property?
✔✔Real property is immovable and attached to land; personal property is movable.
Which financial instrument represents a borrower’s promise to repay a loan?
✔✔Promissory note.
What does marketable title mean?
✔✔A title free from significant defects, liens, or legal questions, allowing safe transfer.
Which government entity enforces fair housing laws in Texas?
✔✔The Texas Workforce Commission Civil Rights Division (TWC-CRD) and HUD.
What is the primary purpose of a survey in real estate?
✔✔To determine property boundaries and locate improvements relative to those boundaries.
Which type of lease allows the tenant to pay a fixed rent plus expenses such as taxes and
insurance?
✔✔Triple net lease (NNN).
What is a common contingency in a real estate sales contract?
3
