Texas Real Estate Test Bank Exam Prep 2026 -2027
(From Pearson VUE & Champions National Exam Prep)
Most Recent Exam 2026-2027 | Actual Comprehensive
Real Exam Questions With 100% Correct Answers |
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How does the IRS definition of a first-time home buyer
differ from the standard definition?
ANSWERS:
Technically, the person doesn’t have to be purchasing his
or her very first home. The person qualifies under the tax rules as long as that
person did not own a principal
residence at any time during the two years prior to the
acquisition date of the new home.
Why is a listing presentation important?
ANSWERS:
It’s a licensee’s opportunity to meet with a seller and present the merits of their
marketing plan, personal
expertise, and company strengths. At the same time, they can explain the many
phases and details of a real estate transaction. They can also point out how the
provisions of the listing agreement and their relationship work to ensure a
smooth transaction.
, What is the difference between a realized and an unrealized
capital gain?
ANSWERS:
A realized capital gain is an investment that a person
has sold at a profit. An unrealized capital gain is an
investment that a person hasn’t sold yet but would result
in a profit if they did sell it.
John and Grace Palmer bought their home in 1994 for
$150,000. They just sold it for $550,000. How much will
they pay in capital gains tax and why?
ANSWERS:
They have no capital gains to pay. Their profit was
$400,000 and they are eligible for a $500,000 exclusion.
True or False. Capital losses can never be claimed on a
personal residence.
ANSWERS:
True
What is the trend for insurance companies to use in today's
market to determine insurability of both the property and
property owner?
ANSWERS:
Scoring Instruments
, What type of insurance offered by private companies is
subsidized by the federal government?
ANSWERS:
Flood Insurance
What does an endorsement do to a policy?
ANSWERS:
It modifies the policy in some way that is favorable to the
insurance company
What is important to know (and tell your clients) regarding
the CLUE Report?
ANSWERS:
CLUE is a database of insurance claims against a
property from the past five to seven years.
It is not available to insurance companies until AFTER
closing, at which time the language in the insurance
policy may allow the insurance company to reject
coverage.
Buyers should make their offer subject to receiving and
approving a copy of the seller’s CLUE report during
their option period.
What entity provides wind and hail damage coverage in
select coastal areas
ANSWERS:
Texas Windstorm Insurance Association
, Where in the condominium documents would you find the
location of allowances for common area easements, such as
hallways, stairwells, and fitness centers?
ANSWERS:
The Declaration Provisions
What are a condominium owner's responsibilities relating
to the apartment?
ANSWERS:
Maintaining internal systems
Maintaining the property condition
Insuring contents of the unit
What does a person own when purchasing a cooperative unit?
ANSWERS:
Shares in a non-profit corporation or cooperative
association, which in turn acquires and owns an
apartment building as its principal asset
How would you transfer your ownership of a co-op interest?
ANSWERS:
How would you transfer your ownership of a co-op interest?
The co-op interest is transferred by assigning both the
stock certificates and the lease to the buyer.
(From Pearson VUE & Champions National Exam Prep)
Most Recent Exam 2026-2027 | Actual Comprehensive
Real Exam Questions With 100% Correct Answers |
Verified Answers | Already Graded A+ | Guaranteed
Success!!!
How does the IRS definition of a first-time home buyer
differ from the standard definition?
ANSWERS:
Technically, the person doesn’t have to be purchasing his
or her very first home. The person qualifies under the tax rules as long as that
person did not own a principal
residence at any time during the two years prior to the
acquisition date of the new home.
Why is a listing presentation important?
ANSWERS:
It’s a licensee’s opportunity to meet with a seller and present the merits of their
marketing plan, personal
expertise, and company strengths. At the same time, they can explain the many
phases and details of a real estate transaction. They can also point out how the
provisions of the listing agreement and their relationship work to ensure a
smooth transaction.
, What is the difference between a realized and an unrealized
capital gain?
ANSWERS:
A realized capital gain is an investment that a person
has sold at a profit. An unrealized capital gain is an
investment that a person hasn’t sold yet but would result
in a profit if they did sell it.
John and Grace Palmer bought their home in 1994 for
$150,000. They just sold it for $550,000. How much will
they pay in capital gains tax and why?
ANSWERS:
They have no capital gains to pay. Their profit was
$400,000 and they are eligible for a $500,000 exclusion.
True or False. Capital losses can never be claimed on a
personal residence.
ANSWERS:
True
What is the trend for insurance companies to use in today's
market to determine insurability of both the property and
property owner?
ANSWERS:
Scoring Instruments
, What type of insurance offered by private companies is
subsidized by the federal government?
ANSWERS:
Flood Insurance
What does an endorsement do to a policy?
ANSWERS:
It modifies the policy in some way that is favorable to the
insurance company
What is important to know (and tell your clients) regarding
the CLUE Report?
ANSWERS:
CLUE is a database of insurance claims against a
property from the past five to seven years.
It is not available to insurance companies until AFTER
closing, at which time the language in the insurance
policy may allow the insurance company to reject
coverage.
Buyers should make their offer subject to receiving and
approving a copy of the seller’s CLUE report during
their option period.
What entity provides wind and hail damage coverage in
select coastal areas
ANSWERS:
Texas Windstorm Insurance Association
, Where in the condominium documents would you find the
location of allowances for common area easements, such as
hallways, stairwells, and fitness centers?
ANSWERS:
The Declaration Provisions
What are a condominium owner's responsibilities relating
to the apartment?
ANSWERS:
Maintaining internal systems
Maintaining the property condition
Insuring contents of the unit
What does a person own when purchasing a cooperative unit?
ANSWERS:
Shares in a non-profit corporation or cooperative
association, which in turn acquires and owns an
apartment building as its principal asset
How would you transfer your ownership of a co-op interest?
ANSWERS:
How would you transfer your ownership of a co-op interest?
The co-op interest is transferred by assigning both the
stock certificates and the lease to the buyer.
