Texas Real Estate Broker Final Exam Questions And Correct Answers (Verified Answers) Plus Rationales 2025/2026 Q&A | Instant Download Pdf

Texas Real Estate
Broker Final Exam
Questions And Correct
Answers (Verified
Answers) Plus
Rationales 2025/2026
Q&A | Instant
Download Pdf
1. Which entity regulates real estate brokers in Texas?
A. Texas Bar Association
B. Texas Real Estate Commission (TREC)
C. Federal Housing Administration
D. Texas Department of Commerce
Answer: B

,Rationale: TREC is the state agency that licenses and
regulates real estate professionals.


2. A broker in Texas must renew their license every:
A. 1 year
B. 2 years
C. 3 years
D. 4 years
Answer: B
Rationale: Texas broker licenses are renewed every two
years.


3. The primary purpose of the Real Estate License Act is to:
A. Set property taxes
B. Protect consumers
C. Regulate mortgage rates
D. Control zoning laws
Answer: B
Rationale: The act ensures consumer protection in real
estate transactions.


4. A broker owes fiduciary duties to:
A. Only buyers
B. Only sellers
C. Their clients
D. The government
Answer: C

, Rationale: Fiduciary duties are owed to clients, not all
parties.


5. Which of the following is NOT a fiduciary duty?
A. Loyalty
B. Obedience
C. Profit sharing
D. Disclosure
Answer: C
Rationale: Brokers are not required to share profits with
clients.


6. In Texas, earnest money is typically held by:
A. Buyer
B. Seller
C. Title company or broker
D. County clerk
Answer: C
Rationale: Earnest money is usually held in escrow by a title
company or broker.


7. The document that officially transfers ownership is the:
A. Mortgage
B. Deed
C. Contract
D. Title insurance policy