TEXAS REAL ESTATE EXAM; STATE PORTION | MOST RECENT
EXAM QUESTIONS AND CORRECT ANSWERS | 2026 UPDATE
| GRADED A+
• What is an agency? -✓✓ A relationship where a broker reprersents a client and owes
fiduciary duties
• Who is the client? -✓✓ A person who receives but doesn't have an agency relationship
• What are fiduciary duties? -✓✓ Old Car
- Obedience
- Loyalty
- Disclosure
- Confidentiality
- Accountability
- Reasonable Care
• loyalty -✓✓ Agent must put the clients interests above their own
Ex. Getting the seller the best price
• Obedience -✓✓ Agent must follow the clients lawful instructions
Ex. Follow the sellers instructions about marketing.
• Confidentiality -✓✓ Keeping the clients info private.
Ex. Buyer can pay $400,000 but offered $350,000 -> keep private
• Disclosure -✓✓ Revealing g important info that could affect the clients decision
Ex. Known foundation problems
• Accounting -✓✓ Properly handling money and documents belonging to others
Ex. Earnest money
• Reasonable care & diligence -✓✓ Using professional knowledge and investigating info
Ex. " idk but I will find out"
• What happens to confidentiality after agency ends? -✓✓ It continues after the
relationship ends
• Intermediary (Texas) -✓✓ A broker who represents both buyer and seller in the same
transaction with written consent
• Intermediary with appointments -✓✓ Broker appoints separate agents to advise buyer
and seller
, • Can an agent hide a buyers offer because they think it's too low? -✓✓ No. All offers
must be presented.
• Can an agent guarantee a property's value? -✓✓ No. Agents provide information and
guidance, but do not guarantee value.
• What makes a valid contract? -✓✓ Competent parties, mutual agreement,
consideration, and legal purpose
• Consideration -✓✓ something of value exchanged for something else of value
EX. Money exchange for property.
• Executory contract -✓✓ Contract exist, but obligations are not completed
Ex. Signed contract waiting for closing
• Executed Contract -✓✓ A contract that has been completely performed by both
parties.
• Void Contract -✓✓ Never legally valid
• Voidable Contract -✓✓ Valid contract that one party can cancel due to an legal issue
Ex. Fraud.
• counter offer -✓✓ voids first offer and creates new offer
• Amendment -✓✓ A change to an existing contract
• assignment -✓✓ Transfer of contract rights to another person
• Novation -✓✓ Replacing a party in a contract and releasing the original party
• Statue of Frauds -✓✓ Require certain contractors, including real estate sales to be in
writing
• When is the acceptance complete? -✓✓ When acceptance is communicated to the
other party
• If a buyer changes their mind after signing a contract, what may happen? -✓✓ They
may be in breach of contract
• What is a breach of contract? -✓✓ Failure to perform promised duties under a contract
EXAM QUESTIONS AND CORRECT ANSWERS | 2026 UPDATE
| GRADED A+
• What is an agency? -✓✓ A relationship where a broker reprersents a client and owes
fiduciary duties
• Who is the client? -✓✓ A person who receives but doesn't have an agency relationship
• What are fiduciary duties? -✓✓ Old Car
- Obedience
- Loyalty
- Disclosure
- Confidentiality
- Accountability
- Reasonable Care
• loyalty -✓✓ Agent must put the clients interests above their own
Ex. Getting the seller the best price
• Obedience -✓✓ Agent must follow the clients lawful instructions
Ex. Follow the sellers instructions about marketing.
• Confidentiality -✓✓ Keeping the clients info private.
Ex. Buyer can pay $400,000 but offered $350,000 -> keep private
• Disclosure -✓✓ Revealing g important info that could affect the clients decision
Ex. Known foundation problems
• Accounting -✓✓ Properly handling money and documents belonging to others
Ex. Earnest money
• Reasonable care & diligence -✓✓ Using professional knowledge and investigating info
Ex. " idk but I will find out"
• What happens to confidentiality after agency ends? -✓✓ It continues after the
relationship ends
• Intermediary (Texas) -✓✓ A broker who represents both buyer and seller in the same
transaction with written consent
• Intermediary with appointments -✓✓ Broker appoints separate agents to advise buyer
and seller
, • Can an agent hide a buyers offer because they think it's too low? -✓✓ No. All offers
must be presented.
• Can an agent guarantee a property's value? -✓✓ No. Agents provide information and
guidance, but do not guarantee value.
• What makes a valid contract? -✓✓ Competent parties, mutual agreement,
consideration, and legal purpose
• Consideration -✓✓ something of value exchanged for something else of value
EX. Money exchange for property.
• Executory contract -✓✓ Contract exist, but obligations are not completed
Ex. Signed contract waiting for closing
• Executed Contract -✓✓ A contract that has been completely performed by both
parties.
• Void Contract -✓✓ Never legally valid
• Voidable Contract -✓✓ Valid contract that one party can cancel due to an legal issue
Ex. Fraud.
• counter offer -✓✓ voids first offer and creates new offer
• Amendment -✓✓ A change to an existing contract
• assignment -✓✓ Transfer of contract rights to another person
• Novation -✓✓ Replacing a party in a contract and releasing the original party
• Statue of Frauds -✓✓ Require certain contractors, including real estate sales to be in
writing
• When is the acceptance complete? -✓✓ When acceptance is communicated to the
other party
• If a buyer changes their mind after signing a contract, what may happen? -✓✓ They
may be in breach of contract
• What is a breach of contract? -✓✓ Failure to perform promised duties under a contract
