QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026
1. The Texas Real Estate Commission (TREC) is responsible for:
A. Mortgage lending
B. Licensing and regulating real estate professionals
C. Property taxation
D. Home construction codes
Answer: B
Rationale: TREC oversees licensing and enforcement of real estate laws in Texas.
2. A real estate sales agent in Texas must work under a:
A. Attorney
B. Sponsored broker
C. Appraiser
D. Builder
Answer: B
Rationale: Sales agents must be sponsored by a licensed broker.
3. Real property includes:
A. Cars
B. Land and improvements
C. Furniture
D. Cash
Answer: B
Rationale: Real property consists of land and anything permanently attached.
4. Personal property is also called:
,A. Fixtures
B. Chattels
C. Estates
D. Encumbrances
Answer: B
Rationale: Chattels are movable personal property.
5. A fixture is:
A. Temporary item
B. Permanently attached item
C. Lease agreement
D. Loan document
Answer: B
Rationale: Fixtures become part of real property when attached.
6. The Statute of Frauds requires real estate contracts to be:
A. Oral
B. Written
C. Implied
D. Verbal only
Answer: B
Rationale: Real estate contracts must be in writing to be enforceable.
7. Fiduciary duties include:
A. Loyalty
B. Tax filing
C. Lending
D. Appraisal
Answer: A
Rationale: Agents owe loyalty and other fiduciary duties to clients.
8. Which is NOT a fiduciary duty?
, A. Obedience
B. Confidentiality
C. Advertising
D. Accounting
Answer: C
Rationale: Advertising is not a fiduciary duty.
9. Fair Housing laws prohibit discrimination based on:
A. Income
B. Protected classes
C. Education
D. Job type
Answer: B
Rationale: Federal law protects certain classes.
10. Steering is:
A. Loan approval
B. Directing clients based on protected class
C. Appraisal method
D. Marketing strategy
Answer: B
Rationale: Illegal under fair housing laws.
11. Blockbusting is:
A. Renovation
B. Encouraging panic selling
C. Lending practice
D. Inspection method
Answer: B
Rationale: Illegal discriminatory practice.
12. A deed transfers: