TREBS EXAM 5 2025 QUESTIONS AND
ANSWERS
Use of the TREC promulgated One to Four Family Residential Contract (Resale):
A. Is allowed on the sale of a residential condominium
B. Can be used for a vacant residential lot
C. Covers single family, duplex, triplex, and fourplex transactions
D. All of the above
Rationale: The correct answer is C. The TREC One to Four Family Residential Contract (Resale)
covers single family, duplex, triplex, and fourplex transactions. - ANS C. Covers single family,
duplex, triplex, and fourplex transactions
Broker's fees are:
A. Included in the One to Four Family Residential Contract (Resale) between the Buyer and the
Seller
B. Determined by writing in the Information About Brokerage Services
C. Determined by writing in the Listing Agreement
D. Both B and C
Rationale: The correct answer is C. Broker fees are agreed in the listing agreement between the
Seller and the Broker. The Broker has the ability to share those fees with an agent from an
outside company who works with a buyer. - ANS
Fraud is:
A. A crime
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, B. A civil law violation
C. Both A and B
D. Only B
Rationale: The correct answer is C. Fraud can be prosecuted as a crime. Fraud charges also can
go through the courts as civil law violations. - ANS
Federal Fair Housing Laws forbid discriminatory practices by parties including:
A. Owners of properties
B. Lenders
C. Real estate brokers
D. All of the above
Rationale: The correct answer is D. Discriminatory practices are NOT allowed in any transaction.
- ANS
In a real estate transaction, the legal description is NOT:
A. Lot and block
B. Metes and bounds
C. A street address
D. A description of the property from a surveyor's field notes
Rationale: The correct answer is C. The legal descriptions in Texas are: Lot and block, and metes
and bounds (sometimes also called surveyor's field notes). A street address is NOT a legal
description. - ANS
Earnest money:
A. Constitutes the consideration
B. Is used to make the offer more enticing to the seller
C. Is required in the contract
D. Always equals 1% of the sales price
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, Rationale: The correct answer is B. Earnest money is a gesture of good faith and is used to make
the offer more enticing to the seller. It can be any amount that the Buyer wishes to offer, and
the Seller is willing to accept. - ANS
Chapter 531 Canons of Professional Ethics and Conduct includes::
A. Fidelity
B. Integrity
C. Competency
D. All of the above
Rationale: The correct answer is D. Fidelity, Integrity and Competency are all a part of Canons of
Professional Ethics and Conduct. - ANS
In the Buyer Agreement, Intermediary is in Paragraph 8. The paragraph is the same in the Buyer
Agreement and in the:
A. Listing agreement
B. Sales contract
C. Inspecting report
D. Seller's Disclosure
Rationale: The correct answer is A. The written agreements that allow intermediary are the
Buyer/Tenant agency agreement on the buyer's side, and the Listing Agreement on the seller's
side. - ANS
A broker may not disclose any confidential information unless:
A. The broker is given permission in writing by the client.
B. It is required by law.
C. Confidentially is not required in real estate.
D. Both A and B
Rationale: The correct answer is D. Confidential information received from a client to their
agent may not be disclosed unless the agent has been given written permission to disclose, or if
the disclosure is required by law. - ANS
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ANSWERS
Use of the TREC promulgated One to Four Family Residential Contract (Resale):
A. Is allowed on the sale of a residential condominium
B. Can be used for a vacant residential lot
C. Covers single family, duplex, triplex, and fourplex transactions
D. All of the above
Rationale: The correct answer is C. The TREC One to Four Family Residential Contract (Resale)
covers single family, duplex, triplex, and fourplex transactions. - ANS C. Covers single family,
duplex, triplex, and fourplex transactions
Broker's fees are:
A. Included in the One to Four Family Residential Contract (Resale) between the Buyer and the
Seller
B. Determined by writing in the Information About Brokerage Services
C. Determined by writing in the Listing Agreement
D. Both B and C
Rationale: The correct answer is C. Broker fees are agreed in the listing agreement between the
Seller and the Broker. The Broker has the ability to share those fees with an agent from an
outside company who works with a buyer. - ANS
Fraud is:
A. A crime
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, B. A civil law violation
C. Both A and B
D. Only B
Rationale: The correct answer is C. Fraud can be prosecuted as a crime. Fraud charges also can
go through the courts as civil law violations. - ANS
Federal Fair Housing Laws forbid discriminatory practices by parties including:
A. Owners of properties
B. Lenders
C. Real estate brokers
D. All of the above
Rationale: The correct answer is D. Discriminatory practices are NOT allowed in any transaction.
- ANS
In a real estate transaction, the legal description is NOT:
A. Lot and block
B. Metes and bounds
C. A street address
D. A description of the property from a surveyor's field notes
Rationale: The correct answer is C. The legal descriptions in Texas are: Lot and block, and metes
and bounds (sometimes also called surveyor's field notes). A street address is NOT a legal
description. - ANS
Earnest money:
A. Constitutes the consideration
B. Is used to make the offer more enticing to the seller
C. Is required in the contract
D. Always equals 1% of the sales price
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, Rationale: The correct answer is B. Earnest money is a gesture of good faith and is used to make
the offer more enticing to the seller. It can be any amount that the Buyer wishes to offer, and
the Seller is willing to accept. - ANS
Chapter 531 Canons of Professional Ethics and Conduct includes::
A. Fidelity
B. Integrity
C. Competency
D. All of the above
Rationale: The correct answer is D. Fidelity, Integrity and Competency are all a part of Canons of
Professional Ethics and Conduct. - ANS
In the Buyer Agreement, Intermediary is in Paragraph 8. The paragraph is the same in the Buyer
Agreement and in the:
A. Listing agreement
B. Sales contract
C. Inspecting report
D. Seller's Disclosure
Rationale: The correct answer is A. The written agreements that allow intermediary are the
Buyer/Tenant agency agreement on the buyer's side, and the Listing Agreement on the seller's
side. - ANS
A broker may not disclose any confidential information unless:
A. The broker is given permission in writing by the client.
B. It is required by law.
C. Confidentially is not required in real estate.
D. Both A and B
Rationale: The correct answer is D. Confidential information received from a client to their
agent may not be disclosed unless the agent has been given written permission to disclose, or if
the disclosure is required by law. - ANS
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