ACEABLE AGENT TEXAS REAL ESTATE
PRINCIPLES I EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
Broker's Price Opinion (BPO) - ANS A broker's price opinion is the process used by a hired
sales agent to determine the potential selling price or estimated value of a real estate property
Closing - ANS The completion of a real estate transaction in which the buyer receives
ownership and the seller receives the contract amount
Comparative Market Analysis (CMA) - ANS A report comparing the prices of sold homes that
are similar to the subject property (called comparables), created by a license holder to help the
seller or buyer determine the market value
Seller's Market - ANS a market condition in which the number of properties for sale does not
meet the demand (number of people looking to buy)
Buyer's Market - ANS relatively low demand for real estate in the area (it will take 6 months
or more to sell a house)
Agent - ANS A person who acts on behalf of someone else
Seller's Disclosure Notice - ANS A document filled out by the seller concerning any defects in
the improvements on the property
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Subagent - ANS A license holder from one office who represents the seller through
cooperation with the listing broker of another company
Material Fact - ANS Any fact that is significant or essential to the transaction
Principle - ANS the individual who authorizes another person to act on their behalf
Intermediary Relationships - ANS occur when the same real estate office is representing both
the seller and the buyer as clients in the same transaction
Third Party - ANS the individual with whom the agent and principal enter into real estate
negotiations. The third party is also sometimes referred to as the customer
Agency Relationship Disclosure - ANS Agency relationships should be disclosed at first contact
Community Reinvestment Act - ANS Helps commercial banks and savings associations meet
the needs of borrowers in all segments of their communities, including low- and moderate-
income neighborhoods
Redlining - ANS The illegal act of a lender denying mortgages in certain areas of town
Home Mortgage Disclosure - ANS Federal act that requires lenders to disclose specific lending
information, which HUD then uses to map lending patterns
Texas Real Estate License Act (TRELA) - ANS A law that governs the licensing, education, and
activities of real estate license holders practicing brokerage in this state
Texas Real Estate Commission (TREC) - ANS A group of nine people appointed by the
governor and confirmed by the state senate that are to set policy and rules from the real estate
license act
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
PRINCIPLES I EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
Broker's Price Opinion (BPO) - ANS A broker's price opinion is the process used by a hired
sales agent to determine the potential selling price or estimated value of a real estate property
Closing - ANS The completion of a real estate transaction in which the buyer receives
ownership and the seller receives the contract amount
Comparative Market Analysis (CMA) - ANS A report comparing the prices of sold homes that
are similar to the subject property (called comparables), created by a license holder to help the
seller or buyer determine the market value
Seller's Market - ANS a market condition in which the number of properties for sale does not
meet the demand (number of people looking to buy)
Buyer's Market - ANS relatively low demand for real estate in the area (it will take 6 months
or more to sell a house)
Agent - ANS A person who acts on behalf of someone else
Seller's Disclosure Notice - ANS A document filled out by the seller concerning any defects in
the improvements on the property
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Subagent - ANS A license holder from one office who represents the seller through
cooperation with the listing broker of another company
Material Fact - ANS Any fact that is significant or essential to the transaction
Principle - ANS the individual who authorizes another person to act on their behalf
Intermediary Relationships - ANS occur when the same real estate office is representing both
the seller and the buyer as clients in the same transaction
Third Party - ANS the individual with whom the agent and principal enter into real estate
negotiations. The third party is also sometimes referred to as the customer
Agency Relationship Disclosure - ANS Agency relationships should be disclosed at first contact
Community Reinvestment Act - ANS Helps commercial banks and savings associations meet
the needs of borrowers in all segments of their communities, including low- and moderate-
income neighborhoods
Redlining - ANS The illegal act of a lender denying mortgages in certain areas of town
Home Mortgage Disclosure - ANS Federal act that requires lenders to disclose specific lending
information, which HUD then uses to map lending patterns
Texas Real Estate License Act (TRELA) - ANS A law that governs the licensing, education, and
activities of real estate license holders practicing brokerage in this state
Texas Real Estate Commission (TREC) - ANS A group of nine people appointed by the
governor and confirmed by the state senate that are to set policy and rules from the real estate
license act
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
