PRINCIPLES 1 REAL ESTATE EXAM PREP
QUESTIONS AND ANSWERS 2026 STUDY
GUIDE
◉ What is the name of the part of the beach that is privately owned?
Answer: Dry beach.
◉ Real estate law covers general property law, real estate license law,
the law of contracts, landlord/tenant law, consumer protection, and:
Answer: The law of agency
◉ Which entity is charged with administering the laws of TRELA?
Answer: The Texas Real Estate Commission
◉ What is the most common homeowners policy? Answer: The HO-B
Policy
◉ Which of the following is a right included with real property?
Answer: Exclusion
,◉ Which keyword can be used to describe real property? Answer: Built-
in. Built-in would describe real property that is permanently affixed to
the property.
◉ Once signed, the listing agreement is a legally binding contract
between: Answer: The listing broker and the seller.
◉ What is considered a passing grade for the state licensing exam for a
real estate professional who is seeking a brokers license? Answer: A
75% or greater.
◉ Land, plus all things permanently attached to it naturally or artificially
is: Answer: Real estate
◉ The exemption to the Fair Housing Act that would normally apply
that is moot when a real estate agent represents : Answer: Owner
occupied buildings with no more than four units.
◉ Sally Mae is a real estate licensee who would like to become a realtor,
what must she do? Answer: Become a member of the NAR
◉ What agency enforces fair housing laws? Answer: FHEO. The Fair
Housing and Equal Opportunity administers and enforces fair housing
laws.
, ◉ Which type of anti-trust violation involves two or more businesses
conspiring against another? Answer: Group boycotting
◉ This type of housing is not considered real property: Answer:
Cooperative
◉ When a fair housing complaint is received, how long does TWCCRD
have to begin investigating and attempt to resolve the issue? Answer:
100 days. Once the complaint is received the TWCCRD has 100 days.
◉ What does it mean when the buyer signs and dates the sellers
disclosure notice? Answer: The buyer is acknowledging receipt of the
disclosure.
◉ When a business is organized as a partnership, Answer: General
partners are jointly and severally responsible for all business debts.
◉ The payment of commission to a non-licensed individual for
brokerage services is: Answer: Illegally only if the person is not exempt
from licensing law. Individuals who are exempt from licensing law
(Such as attorneys) may receive commissions for providing brokerage
services.
◉ What type of a lien is a specific lien? Answer: Real property tax lien
QUESTIONS AND ANSWERS 2026 STUDY
GUIDE
◉ What is the name of the part of the beach that is privately owned?
Answer: Dry beach.
◉ Real estate law covers general property law, real estate license law,
the law of contracts, landlord/tenant law, consumer protection, and:
Answer: The law of agency
◉ Which entity is charged with administering the laws of TRELA?
Answer: The Texas Real Estate Commission
◉ What is the most common homeowners policy? Answer: The HO-B
Policy
◉ Which of the following is a right included with real property?
Answer: Exclusion
,◉ Which keyword can be used to describe real property? Answer: Built-
in. Built-in would describe real property that is permanently affixed to
the property.
◉ Once signed, the listing agreement is a legally binding contract
between: Answer: The listing broker and the seller.
◉ What is considered a passing grade for the state licensing exam for a
real estate professional who is seeking a brokers license? Answer: A
75% or greater.
◉ Land, plus all things permanently attached to it naturally or artificially
is: Answer: Real estate
◉ The exemption to the Fair Housing Act that would normally apply
that is moot when a real estate agent represents : Answer: Owner
occupied buildings with no more than four units.
◉ Sally Mae is a real estate licensee who would like to become a realtor,
what must she do? Answer: Become a member of the NAR
◉ What agency enforces fair housing laws? Answer: FHEO. The Fair
Housing and Equal Opportunity administers and enforces fair housing
laws.
, ◉ Which type of anti-trust violation involves two or more businesses
conspiring against another? Answer: Group boycotting
◉ This type of housing is not considered real property: Answer:
Cooperative
◉ When a fair housing complaint is received, how long does TWCCRD
have to begin investigating and attempt to resolve the issue? Answer:
100 days. Once the complaint is received the TWCCRD has 100 days.
◉ What does it mean when the buyer signs and dates the sellers
disclosure notice? Answer: The buyer is acknowledging receipt of the
disclosure.
◉ When a business is organized as a partnership, Answer: General
partners are jointly and severally responsible for all business debts.
◉ The payment of commission to a non-licensed individual for
brokerage services is: Answer: Illegally only if the person is not exempt
from licensing law. Individuals who are exempt from licensing law
(Such as attorneys) may receive commissions for providing brokerage
services.
◉ What type of a lien is a specific lien? Answer: Real property tax lien
