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TREBS EXAM 4 (ACTUAL EXAM) WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST 2025 –2026 ALREADY GRADED A+
For a sum of money negotiated between the parties, the buyer has a time period,
stated in this paragraph, for the "unrestricted right" to terminate. Which
paragraph does this reference? :
A. Sales price paragraph
B. Earnest money paragraph
C. Option money paragraph
D. Repairs escrow paragraph - ...(ANSWERS)....C. Option money paragraph
With regard to common mistakes on contracts, it is recommended that the
seller's name be used on the contract as it is named in the ____________.
A. Deed
B. Previous contract when they bought the house.
C. Survey
D. Mortgagee's title policy
Rationale: The correct answer is A. The deed is the document of ownership, so
the deed is the best source for the owner's name that intends to transfer
ownership to the buyer. - ...(ANSWERS)....
In an S Corporation, the earnings of the shareholders are __________.
A. Deferred
B. Taxed
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C. Automatically put into a tax free IRA
D. Shifted to an C Corporation if there are profits in the S Corporation
Rationale: The correct answer is B. In an S Corporation, the earnings of the
shareholders are taxed, each at their own individual rate depending on their
individual incomes. - ...(ANSWERS)....
TREC exists to protect:
A. Real estate agents
B. The citizens of Texas
C. Real estate brokers
D. Lenders, appraisers, and all licensees - ...(ANSWERS)....B. The citizens of Texas
What is the law that established the Texas Real Estate Commission?
A. TREC
B. TRELA
C. TAR
D. TCEQ
Rationale: The correct answer is B. TRELA (or The Texas Real Estate License Act)
required someone to administer it which created the need for the Texas Real
Estate Commission. - ...(ANSWERS)....
All of the following are reasons that contracts may terminate EXCEPT:
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A. Fraud
B. Misrepresentation
C. When there is a suit for specific performance
D. Previous agreement
Rationale: The correct answer is C. A contract may not terminate if the non-
defaulting party is suing for performance of the contact, thereby continuing the
contract until the suit concludes. - ...(ANSWERS)....
What kind of law is handed down by the legislature?
A. Agency Law
B. Common Law
C. TREC
D. Statutory Law
Rationale: The correct answer is D. Statutory laws are the laws passed by the
State Legislature. - ...(ANSWERS)....
Land and all items attached to the property are considered:
A. Attachments
B. Real property
C. Personal property
D. Personal items
TREBS EXAM 4 (ACTUAL EXAM) WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST 2025 –2026 ALREADY GRADED A+
For a sum of money negotiated between the parties, the buyer has a time period,
stated in this paragraph, for the "unrestricted right" to terminate. Which
paragraph does this reference? :
A. Sales price paragraph
B. Earnest money paragraph
C. Option money paragraph
D. Repairs escrow paragraph - ...(ANSWERS)....C. Option money paragraph
With regard to common mistakes on contracts, it is recommended that the
seller's name be used on the contract as it is named in the ____________.
A. Deed
B. Previous contract when they bought the house.
C. Survey
D. Mortgagee's title policy
Rationale: The correct answer is A. The deed is the document of ownership, so
the deed is the best source for the owner's name that intends to transfer
ownership to the buyer. - ...(ANSWERS)....
In an S Corporation, the earnings of the shareholders are __________.
A. Deferred
B. Taxed
, 2
C. Automatically put into a tax free IRA
D. Shifted to an C Corporation if there are profits in the S Corporation
Rationale: The correct answer is B. In an S Corporation, the earnings of the
shareholders are taxed, each at their own individual rate depending on their
individual incomes. - ...(ANSWERS)....
TREC exists to protect:
A. Real estate agents
B. The citizens of Texas
C. Real estate brokers
D. Lenders, appraisers, and all licensees - ...(ANSWERS)....B. The citizens of Texas
What is the law that established the Texas Real Estate Commission?
A. TREC
B. TRELA
C. TAR
D. TCEQ
Rationale: The correct answer is B. TRELA (or The Texas Real Estate License Act)
required someone to administer it which created the need for the Texas Real
Estate Commission. - ...(ANSWERS)....
All of the following are reasons that contracts may terminate EXCEPT:
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A. Fraud
B. Misrepresentation
C. When there is a suit for specific performance
D. Previous agreement
Rationale: The correct answer is C. A contract may not terminate if the non-
defaulting party is suing for performance of the contact, thereby continuing the
contract until the suit concludes. - ...(ANSWERS)....
What kind of law is handed down by the legislature?
A. Agency Law
B. Common Law
C. TREC
D. Statutory Law
Rationale: The correct answer is D. Statutory laws are the laws passed by the
State Legislature. - ...(ANSWERS)....
Land and all items attached to the property are considered:
A. Attachments
B. Real property
C. Personal property
D. Personal items
