PRINCIPLES OF REAL ESTATE 1 EXAM REVIEW
2026 QUESTIONS WITH ANSWERS GRADED
A+
◉ REALTOR must disclose their lack of experience in a field to a client.
Answer: Article 11 states that a REALTOR may provide a service they
are not specialized in only after fully disclosing their lack of experience,
or if the REALTOR obtains assistance from someone competent in the
field, in which case, the client must be informed.
◉ How many members does the Education Standards Advisory
committee consist of? Answer: 12 members, including license holders,
education members and a public representative.
◉ What is the function of ESAC (Education Standards Advisory
committee)? Answer: They review and revise curriculum standards,
course content and instructor certification.
◉ Which choice describes rubber hits the road education that meets the
education requirements for license renewal? Answer: Graduate,
REALTOR Institute
,◉ What is TRUE about the MLS services. Answer: A REALTOR must
belong to at least one board in Texas
◉ What is the role of professional organizations in the real estate
industry:. Answer: Is to provide education and guidance to improve the
practice of their members
◉ Who requires sponsorship to practice real estate. Answer: Any license
holder (sales agent, a broker and a broker associate)
◉ What does chapter 1102 of the Texas Occupations code govern?
Answer: It governs the practice of Texas Real Estate inspectors
◉ The Sunset Act, a state law in Texas, requires that all state agencies be
reviewed and evaluated with respect to their efficiency and need every
how many years? Answer: Every 12 Years
◉ Who constitutes the Fair Housing Laws, community property Laws
and homestead laws? Answer: State Constitutions and US constitutions
◉ The average number of months it will take to sell a house in a
BUYERS market is:. Answer: 6 months or more
,◉ When an appraisal report is not available, what provides the BEST
data for setting a listing price? Answer: The price willing buyers have
recently paid for similar properties in the area
◉ A seller is LESS or MORE likely to work with an agent who uses
words like "price reduction" rather than "price adjustment. Answer:
LESS Likely
◉ The NAR Code of Ethics is reviewed and updated how often?
Answer: Every Year
◉ Difference between and client and a customer? Answer: A CLIENT
has an agency relationship with you and your broker. A CUSTOMER
does NOT!!
◉ What is NOT grounds for disciplinary action, including revocation or
suspension of a license:. Answer: Failing to obey a clients unlawful
instruction
◉ To avoid _____________ a license holder should only give factual
info from reputable sources, avoid speculation and point potential buyers
to the resources that can help with questions that you shouldn't answer.
Answer: misrepresentation
, ◉ Commingling happens when:. Answer: A license holder mixes their
own money with a client's money.
◉ is the following act necessarily WRONG or NOT? The buyer and
seller both Pay the commission: Wrong or not? Answer: NOT
necessarily wrong
◉ What is the only scenario in which you do NOT need a real estate
license to sell or lease a property? Answer: If you are NOT receiving any
commission fro the sale
◉ TRUE or FALSE: Employees working for a commercial firm do NOT
have to have a real estate license if they are selling property by their own
firm? Answer: TRUE
◉ Are you required to have a real estate license if you are selling a
portion of a joint ownership in a property? Answer: NO-Not required
◉ When does an inactive license before active? Answer: When the
license holder joins a brokerage
◉ What would make the license of a salesperson inactive? Answer:
Expiration, Death of a salesperson, termination of the license of the
sponsoring broker.
2026 QUESTIONS WITH ANSWERS GRADED
A+
◉ REALTOR must disclose their lack of experience in a field to a client.
Answer: Article 11 states that a REALTOR may provide a service they
are not specialized in only after fully disclosing their lack of experience,
or if the REALTOR obtains assistance from someone competent in the
field, in which case, the client must be informed.
◉ How many members does the Education Standards Advisory
committee consist of? Answer: 12 members, including license holders,
education members and a public representative.
◉ What is the function of ESAC (Education Standards Advisory
committee)? Answer: They review and revise curriculum standards,
course content and instructor certification.
◉ Which choice describes rubber hits the road education that meets the
education requirements for license renewal? Answer: Graduate,
REALTOR Institute
,◉ What is TRUE about the MLS services. Answer: A REALTOR must
belong to at least one board in Texas
◉ What is the role of professional organizations in the real estate
industry:. Answer: Is to provide education and guidance to improve the
practice of their members
◉ Who requires sponsorship to practice real estate. Answer: Any license
holder (sales agent, a broker and a broker associate)
◉ What does chapter 1102 of the Texas Occupations code govern?
Answer: It governs the practice of Texas Real Estate inspectors
◉ The Sunset Act, a state law in Texas, requires that all state agencies be
reviewed and evaluated with respect to their efficiency and need every
how many years? Answer: Every 12 Years
◉ Who constitutes the Fair Housing Laws, community property Laws
and homestead laws? Answer: State Constitutions and US constitutions
◉ The average number of months it will take to sell a house in a
BUYERS market is:. Answer: 6 months or more
,◉ When an appraisal report is not available, what provides the BEST
data for setting a listing price? Answer: The price willing buyers have
recently paid for similar properties in the area
◉ A seller is LESS or MORE likely to work with an agent who uses
words like "price reduction" rather than "price adjustment. Answer:
LESS Likely
◉ The NAR Code of Ethics is reviewed and updated how often?
Answer: Every Year
◉ Difference between and client and a customer? Answer: A CLIENT
has an agency relationship with you and your broker. A CUSTOMER
does NOT!!
◉ What is NOT grounds for disciplinary action, including revocation or
suspension of a license:. Answer: Failing to obey a clients unlawful
instruction
◉ To avoid _____________ a license holder should only give factual
info from reputable sources, avoid speculation and point potential buyers
to the resources that can help with questions that you shouldn't answer.
Answer: misrepresentation
, ◉ Commingling happens when:. Answer: A license holder mixes their
own money with a client's money.
◉ is the following act necessarily WRONG or NOT? The buyer and
seller both Pay the commission: Wrong or not? Answer: NOT
necessarily wrong
◉ What is the only scenario in which you do NOT need a real estate
license to sell or lease a property? Answer: If you are NOT receiving any
commission fro the sale
◉ TRUE or FALSE: Employees working for a commercial firm do NOT
have to have a real estate license if they are selling property by their own
firm? Answer: TRUE
◉ Are you required to have a real estate license if you are selling a
portion of a joint ownership in a property? Answer: NO-Not required
◉ When does an inactive license before active? Answer: When the
license holder joins a brokerage
◉ What would make the license of a salesperson inactive? Answer:
Expiration, Death of a salesperson, termination of the license of the
sponsoring broker.
