Texas Real Estate Exam (State)
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
Which document must a Texas real estate agent provide to a prospective client at first substantive
communication?
✔✔Information About Brokerage Services (IABS) form.
What type of agency relationship represents the seller in a real estate transaction?
✔✔Seller’s agent.
What is the meaning of dual agency in Texas real estate?
✔✔When one agent represents both the buyer and the seller in the same transaction.
Which type of property ownership allows multiple people to hold equal shares with rights of
survivorship?
✔✔Joint tenancy.
What is the primary purpose of a seller’s disclosure notice in Texas?
✔✔To inform the buyer about known property defects or material facts.
Which contract element makes a real estate contract enforceable?
✔✔Offer, acceptance, consideration, and mutual consent.
1
,What is the role of earnest money in a real estate transaction?
✔✔To show the buyer’s good faith and commitment to purchase the property.
Which document transfers ownership of real estate from the seller to the buyer?
✔✔Deed.
What is a “fee simple absolute” in Texas real estate?
✔✔The most complete form of property ownership with unlimited rights.
Which type of deed provides the greatest protection to a buyer?
✔✔General warranty deed.
What is a “quitclaim deed” used for?
✔✔To transfer any ownership interest the grantor may have without warranties.
What is a real estate broker’s main responsibility in Texas?
✔✔To supervise agents, ensure compliance with laws, and manage transactions.
Which type of listing agreement gives a broker the exclusive right to sell a property?
✔✔Exclusive right-to-sell listing.
2
, Which type of listing allows multiple brokers to attempt selling a property, with the seller paying
only the broker who succeeds?
✔✔Open listing.
What is a contingency in a real estate contract?
✔✔A condition that must be met for the contract to be enforceable.
Which federal law prohibits housing discrimination based on race, color, religion, sex, or
national origin?
✔✔The Fair Housing Act.
What is the primary purpose of a home inspection?
✔✔To evaluate the property’s condition and identify potential defects.
Which property characteristic defines a fixture?
✔✔An item attached to the property and considered part of the real estate.
What is the purpose of a comparative market analysis (CMA)?
✔✔To determine the property’s market value based on similar properties.
Which Texas law regulates disclosure of lead-based paint hazards in pre-1978 homes?
✔✔Lead-Based Paint Hazard Reduction Act.
3
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
Which document must a Texas real estate agent provide to a prospective client at first substantive
communication?
✔✔Information About Brokerage Services (IABS) form.
What type of agency relationship represents the seller in a real estate transaction?
✔✔Seller’s agent.
What is the meaning of dual agency in Texas real estate?
✔✔When one agent represents both the buyer and the seller in the same transaction.
Which type of property ownership allows multiple people to hold equal shares with rights of
survivorship?
✔✔Joint tenancy.
What is the primary purpose of a seller’s disclosure notice in Texas?
✔✔To inform the buyer about known property defects or material facts.
Which contract element makes a real estate contract enforceable?
✔✔Offer, acceptance, consideration, and mutual consent.
1
,What is the role of earnest money in a real estate transaction?
✔✔To show the buyer’s good faith and commitment to purchase the property.
Which document transfers ownership of real estate from the seller to the buyer?
✔✔Deed.
What is a “fee simple absolute” in Texas real estate?
✔✔The most complete form of property ownership with unlimited rights.
Which type of deed provides the greatest protection to a buyer?
✔✔General warranty deed.
What is a “quitclaim deed” used for?
✔✔To transfer any ownership interest the grantor may have without warranties.
What is a real estate broker’s main responsibility in Texas?
✔✔To supervise agents, ensure compliance with laws, and manage transactions.
Which type of listing agreement gives a broker the exclusive right to sell a property?
✔✔Exclusive right-to-sell listing.
2
, Which type of listing allows multiple brokers to attempt selling a property, with the seller paying
only the broker who succeeds?
✔✔Open listing.
What is a contingency in a real estate contract?
✔✔A condition that must be met for the contract to be enforceable.
Which federal law prohibits housing discrimination based on race, color, religion, sex, or
national origin?
✔✔The Fair Housing Act.
What is the primary purpose of a home inspection?
✔✔To evaluate the property’s condition and identify potential defects.
Which property characteristic defines a fixture?
✔✔An item attached to the property and considered part of the real estate.
What is the purpose of a comparative market analysis (CMA)?
✔✔To determine the property’s market value based on similar properties.
Which Texas law regulates disclosure of lead-based paint hazards in pre-1978 homes?
✔✔Lead-Based Paint Hazard Reduction Act.
3
