Texas Real Estate Final Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified

Texas Real Estate Final Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified Which fiduciary duty requires a Texas real estate agent to place the client’s interests above their own? A. Reasonable care B. Disclosure C. Accounting D. Obedience Loyalty In Texas, a homestead is primarily protected from which of the following? A. Property taxes B. HOA assessments C. Most creditor claims D. Utility liens Most creditor claims Which document gives a broker authority to act on behalf of a buyer in a transaction? A. Listing agreement B. Sales contract C. Buyer representation agreement 2 D. Option contract Buyer representation agreement What type of listing allows multiple brokers to compete for a commission, but only the procuring cause gets paid? A. Exclusive-right-to-sell B. Net listing C. Exclusive agency D. Open listing Open listing Which Texas contract clause gives a buyer the unrestricted right to terminate within a specified time? A. Financing contingency B. Inspection addendum C. Option period D. Title contingency Option period Who appoints members of the Texas Real Estate Commission (TREC)? A. Texas Legislature B. Secretary of State C. Texas Supreme Court 3 D. Governor of Texas Governor of Texas Which estate in land lasts for the lifetime of a person? A. Fee simple B. Leasehold C. Life estate D. Defeasible fee Life estate What is the primary purpose of an earnest money deposit? A. To pay closing costs B. To show buyer’s good faith C. To reduce the sales price D. To replace down payment To show buyer’s good faith Which of the following is considered real property? A. Furniture B. Built-in kitchen cabinets C. Curtains D. Appliances not affixed Built-in kitchen cabinets 4 What type of depreciation results from neighborhood decline? A. Physical deterioration B. Functional obsolescence C. Economic obsolescence D. Wear and tear Economic obsolescence Which agency relationship arises without a written agreement? A. Express agency B. Buyer agency C. Implied agency D. Intermediary agency Implied agency What does “time is of the essence” mean in a Texas sales contract? A. Deadlines are flexible B. Only closing date matters C. Strict compliance with dates is required D. Extensions are automatic Strict compliance with dates is required 5 Which appraisal principle states that value is affected by the cost of acquiring an equally desirable substitute? A. Conformity B. Substitution C. Contribution D. Anticipation Substitution Which lien has priority over all others in