texas Real Estate License Exam
questions and solutions 2025 latest
update
Qs
Loan-to-Value Ratio (LTV) - n
ANS✔
Loan Amount / Value of Property
Qs
Qualifying Ratio - n
ANS✔
Front-End Ratio / Back-End Ratio
Qs
Front-End Ratio - n
ANS✔
Total Housing Debt / Gross Monthly Income
Qs
Back-End Ratio - n
ANS✔
Total Installment Debt / Gross Monthly Income
Qs
A transaction facilitator in a residential transaction represents:
a) The seller.
,b) The buyer.
c) Both seller and buyer.
d) Neither seller nor buyer. - n
ANS✔
d) Neither seller nor buyer.
Qs
A principal instructs an agent to inform minority buyers that the property for lease
was just leased an hour ago and is no longer available. The agent refuses to
comply. In this case:
a) The agent should not exercise caution until the listing expires, then decline to
renew it.
b) The principal has proposed an illegal act, which the agent should not obey.
c) The agent is liable for breaching the listing terms.
d) The agent may sue the principal for discrimination and misrepresentation. - n
ANS✔
b) The principal has proposed an illegal act, which the agent should not obey.
Qs
The amount of a real estate broker's commission is established by:
a) Agreement among competing buyers.
b) Negotiation with clients.
c) The local Board of Realtorsâ.
d) State real estate license law. - n
ANS✔
b) Negotiation with clients.
Qs
, A client revoked an exclusive right to sell listing two months prior to expiration. The
reason stated: the client is too busy to meet with the agent. In this case:
a) The client is criminally liable for negligence.
b) The client may be liable for compensation commission and marketing expenses.
c) The agent can sue the client for a specific performance even if no customer had
been located.
d) The agent must except the revocation without the possibility of the possibility of
damage recovery. - n
ANS✔
b) The client may be liable for compensation commission and marketing expenses.
Qs
A protection period clause in an exclusive listing provides that:
a) The owner is protected from all liabilities arising from the agent's actions
performed within the agent's scope of duties.
b) The agent has a claim to a commission if the owner sells or leases to a party
within a certain time following the listing's expiration.
c) Agents are entitled to extend a listing agreements term if a transaction is
eminent.
d) An owner is not liable for a commission if a prospective customer delays in
completing an acceptable offer. - n
ANS✔
b) The agent has a claim to a commission if the owner sells or leases to a party
within a certain time following the listing's expiration.
Qs
Real estate advertising must conform to regulatory standards and requirements.
One requirement is
a) A broker may only place blind ads in social media outlets.
b) A broker must have all advertising approved by the local real estate board.
, c) The advertising must not be deceptive.
d) Sales agents may only advertise in their own name. - n
ANS✔
c) The advertising must not be deceptive.
Qs
The three principal brokerage firms in a market agree to pay sales agents 15%
more than any other competitor currently in practice. This is an example of
a) Collusion.
b) Price-fixing.
c) Allocation of markets.
d) Steering. - n
ANS✔
a) Collusion.
Qs
Two leading agencies jointly agreed to raise commissions charge to residential
sellers to 7.5% of the sales price. Which of the following is true?
a) This is a perfectly legitimate business practice.
b) The brokers have illegally fixed prices.
c) The brokers have allocated markets.
d) The brokers have engaged in legal collusion. - n
ANS✔
b) The brokers have illegally fixed prices.
Qs
A sale contract contains an open-ended financing contingency: if the buyer cannot
obtain financing within a reasonable time the deal is off. Six months later the buyer
still cannot secure financing. Which of the following is true?
questions and solutions 2025 latest
update
Qs
Loan-to-Value Ratio (LTV) - n
ANS✔
Loan Amount / Value of Property
Qs
Qualifying Ratio - n
ANS✔
Front-End Ratio / Back-End Ratio
Qs
Front-End Ratio - n
ANS✔
Total Housing Debt / Gross Monthly Income
Qs
Back-End Ratio - n
ANS✔
Total Installment Debt / Gross Monthly Income
Qs
A transaction facilitator in a residential transaction represents:
a) The seller.
,b) The buyer.
c) Both seller and buyer.
d) Neither seller nor buyer. - n
ANS✔
d) Neither seller nor buyer.
Qs
A principal instructs an agent to inform minority buyers that the property for lease
was just leased an hour ago and is no longer available. The agent refuses to
comply. In this case:
a) The agent should not exercise caution until the listing expires, then decline to
renew it.
b) The principal has proposed an illegal act, which the agent should not obey.
c) The agent is liable for breaching the listing terms.
d) The agent may sue the principal for discrimination and misrepresentation. - n
ANS✔
b) The principal has proposed an illegal act, which the agent should not obey.
Qs
The amount of a real estate broker's commission is established by:
a) Agreement among competing buyers.
b) Negotiation with clients.
c) The local Board of Realtorsâ.
d) State real estate license law. - n
ANS✔
b) Negotiation with clients.
Qs
, A client revoked an exclusive right to sell listing two months prior to expiration. The
reason stated: the client is too busy to meet with the agent. In this case:
a) The client is criminally liable for negligence.
b) The client may be liable for compensation commission and marketing expenses.
c) The agent can sue the client for a specific performance even if no customer had
been located.
d) The agent must except the revocation without the possibility of the possibility of
damage recovery. - n
ANS✔
b) The client may be liable for compensation commission and marketing expenses.
Qs
A protection period clause in an exclusive listing provides that:
a) The owner is protected from all liabilities arising from the agent's actions
performed within the agent's scope of duties.
b) The agent has a claim to a commission if the owner sells or leases to a party
within a certain time following the listing's expiration.
c) Agents are entitled to extend a listing agreements term if a transaction is
eminent.
d) An owner is not liable for a commission if a prospective customer delays in
completing an acceptable offer. - n
ANS✔
b) The agent has a claim to a commission if the owner sells or leases to a party
within a certain time following the listing's expiration.
Qs
Real estate advertising must conform to regulatory standards and requirements.
One requirement is
a) A broker may only place blind ads in social media outlets.
b) A broker must have all advertising approved by the local real estate board.
, c) The advertising must not be deceptive.
d) Sales agents may only advertise in their own name. - n
ANS✔
c) The advertising must not be deceptive.
Qs
The three principal brokerage firms in a market agree to pay sales agents 15%
more than any other competitor currently in practice. This is an example of
a) Collusion.
b) Price-fixing.
c) Allocation of markets.
d) Steering. - n
ANS✔
a) Collusion.
Qs
Two leading agencies jointly agreed to raise commissions charge to residential
sellers to 7.5% of the sales price. Which of the following is true?
a) This is a perfectly legitimate business practice.
b) The brokers have illegally fixed prices.
c) The brokers have allocated markets.
d) The brokers have engaged in legal collusion. - n
ANS✔
b) The brokers have illegally fixed prices.
Qs
A sale contract contains an open-ended financing contingency: if the buyer cannot
obtain financing within a reasonable time the deal is off. Six months later the buyer
still cannot secure financing. Which of the following is true?
