REALESTATEU: TEXAS REAL ESTATE
PRINCIPLES PART 1 FINAL ACTUAL
EXAM PAPER 2026 QUESTIONS WITH
ANSWERS GRADED A+
◍ Which choice describes “rubber hits the road” education that meets the
education requirements for license renewal?.
Answer: REALTORS Land Institute
◍ The Committee has _____ members appointed by the Commission..
Answer: 12
◍ What is the only scenario in which you do NOT need a real estate license to
sell or lease a property?.
Answer: If you are not receiving commission from the sale.
◍ The __________ is a statute that is administered and enforced by the Texas
Real Estate Commission (TREC), which is a state agency..
Answer: Real Estate License Act
◍ A successful career in real estate requires someone to:.
Answer: be a self-started.
◍ TRUE or FALSE: Employees working for a commercial firm do not have to
have a real estate license if they are selling property owned by their firm..
Answer: True
◍ Which of the following actions does NOT require a real estate license?.
Answer: Selling a portion of a joint ownership in a property
◍ When does an inactive license become active?.
Answer: When the license holder joins a brokerage
,◍ The following circumstances would make the license of a salesperson
inactive EXCEPT:.
Answer: Having a Recovery Fund payment as a result of an improper
transaction.
◍ The average number of months it will take to sell a house in a buyer's
market is:.
Answer: 6 months or more
◍ A peak is characterized as the __________ turning point of a business
cycle..
Answer: upper
◍ When an appraisal report is not available, which of the following provides
the BEST data for setting a listing price?.
Answer: The Price willing buyers have recently paid similar properties in
the area
◍ Which of the following actions is NOT grounds for disciplinary action,
including revocation or suspension of a license?.
Answer: Failing to obey a clients unlawful instruction
◍ Commingling happens when:.
Answer: A license holder mixes their own money with a client's money.
◍ To be eligible to get a Texas real estate sales agent or broker license, a
person must:.
Answer: All of the choices apply
◍ Which of the following is not a duty of TREC?.
Answer: Creates state laws, statues, and rules
◍ What are changes in business and economic activity that occur within the
year?.
Answer: Short-term fluctuations.
◍ The majority of new licensees begin their careers with a __________ to help
homeowners sell and homebuyers purchase homes..
, Answer: residential brokerage
◍ Which of the following acts is NOT necessarily wrong?.
Answer: The Buyer and Seller both pay the commission.
◍ Who requires sponsorship to practice real estate?.
Answer: sales agent
◍ Which of the following statements is true regarding NAR and TAR?.
Answer: All of the choices apply.
◍ What is the difference between land and real estate?.
Answer: Land is a tract of earth plus the resources above and below; real
estate is land plus human-made improvements.
◍ The bundle of right associated with property ownership include quiet
enjoyment, possession, disposition, and:.
Answer: Exclusion
◍ Ownership rights include surface rights (mineral rights), subsurface rights,
air rights, and:.
Answer: Water Rights
◍ Any person who wants to engage in the real estate business and act as a real
estate broker or real estate sales agent within the state of Texas must obtain
a license from the:.
Answer: Texas Real Estate Commission.
◍ The Education Standards Advisory Committee is responsible for reviewing
and revising:.
Answer: All of the choices apply.
◍ A(n) __________ is a rule issued by an administrative agency to enforce or
amplify a statute..
Answer: regulation
◍ When an individual owns the mineral rights, they own:.
Answer: Subsurface Rights
PRINCIPLES PART 1 FINAL ACTUAL
EXAM PAPER 2026 QUESTIONS WITH
ANSWERS GRADED A+
◍ Which choice describes “rubber hits the road” education that meets the
education requirements for license renewal?.
Answer: REALTORS Land Institute
◍ The Committee has _____ members appointed by the Commission..
Answer: 12
◍ What is the only scenario in which you do NOT need a real estate license to
sell or lease a property?.
Answer: If you are not receiving commission from the sale.
◍ The __________ is a statute that is administered and enforced by the Texas
Real Estate Commission (TREC), which is a state agency..
Answer: Real Estate License Act
◍ A successful career in real estate requires someone to:.
Answer: be a self-started.
◍ TRUE or FALSE: Employees working for a commercial firm do not have to
have a real estate license if they are selling property owned by their firm..
Answer: True
◍ Which of the following actions does NOT require a real estate license?.
Answer: Selling a portion of a joint ownership in a property
◍ When does an inactive license become active?.
Answer: When the license holder joins a brokerage
,◍ The following circumstances would make the license of a salesperson
inactive EXCEPT:.
Answer: Having a Recovery Fund payment as a result of an improper
transaction.
◍ The average number of months it will take to sell a house in a buyer's
market is:.
Answer: 6 months or more
◍ A peak is characterized as the __________ turning point of a business
cycle..
Answer: upper
◍ When an appraisal report is not available, which of the following provides
the BEST data for setting a listing price?.
Answer: The Price willing buyers have recently paid similar properties in
the area
◍ Which of the following actions is NOT grounds for disciplinary action,
including revocation or suspension of a license?.
Answer: Failing to obey a clients unlawful instruction
◍ Commingling happens when:.
Answer: A license holder mixes their own money with a client's money.
◍ To be eligible to get a Texas real estate sales agent or broker license, a
person must:.
Answer: All of the choices apply
◍ Which of the following is not a duty of TREC?.
Answer: Creates state laws, statues, and rules
◍ What are changes in business and economic activity that occur within the
year?.
Answer: Short-term fluctuations.
◍ The majority of new licensees begin their careers with a __________ to help
homeowners sell and homebuyers purchase homes..
, Answer: residential brokerage
◍ Which of the following acts is NOT necessarily wrong?.
Answer: The Buyer and Seller both pay the commission.
◍ Who requires sponsorship to practice real estate?.
Answer: sales agent
◍ Which of the following statements is true regarding NAR and TAR?.
Answer: All of the choices apply.
◍ What is the difference between land and real estate?.
Answer: Land is a tract of earth plus the resources above and below; real
estate is land plus human-made improvements.
◍ The bundle of right associated with property ownership include quiet
enjoyment, possession, disposition, and:.
Answer: Exclusion
◍ Ownership rights include surface rights (mineral rights), subsurface rights,
air rights, and:.
Answer: Water Rights
◍ Any person who wants to engage in the real estate business and act as a real
estate broker or real estate sales agent within the state of Texas must obtain
a license from the:.
Answer: Texas Real Estate Commission.
◍ The Education Standards Advisory Committee is responsible for reviewing
and revising:.
Answer: All of the choices apply.
◍ A(n) __________ is a rule issued by an administrative agency to enforce or
amplify a statute..
Answer: regulation
◍ When an individual owns the mineral rights, they own:.
Answer: Subsurface Rights
