Texas State Portion Real Estate Exam with all Correct &
100% Verified Answers |Actual Complete Update |
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Who is responsible for any wrongs done by a salesperson while acting within the scope of the
agency agreement? ✔Correct Answer-The broker is liable for the wrongdoing of his or her
salespersons. The principal is liable for any wrongs committed by the broker while acting within
the scope of the agency agreement.
what is the distinction between sales contracts and option contracts? ✔Correct Answer-One
characteristic of sales contracts is mutual obligation. Option contracts lack mutual obligation.
The buyer in an option contract is not obligated to buy.
A listing agreement must contain: ✔Correct Answer-a standard street address is sufficient.
If the commission investigates a complaint and determines that an individual's real estate
license should be suspended or revoked, the licensee is entitled to a hearing before the
commission within how many days after the commission reaches its decision? ✔Correct
Answer-A licensee who faces suspension or revocation of their license is entitled to a hearing
within 30 days of the commission reaching their decision.
Which of the licensed entities does not fall under the regulatory authority of the Texas Real
Estate Commission? ✔Correct Answer-The Texas Appraiser Licensing and Certification Board
has jurisdiction over state licensed and certified appraisers. In addition to licensing brokers and
salespersons, the Texas Real Estate Commission is responsible for licensing real estate
inspectors and for regulation of companies that sell and issue residential service contracts
("home warranties"). (Article 65736, Vernon's Texas Civil Statutes.
A licensee in Texas may not practice law, unless licensed and authorized to do so in Texas.
Practicing law includes altering contracts, or drawing up: ✔Correct Answer-a deed, deed of
trust, will, or other written instrument that may transfer or affect the title to land.
What penalties may a licensee who breaches the agency relationship face? ✔Correct Answer-
A licensee who breaches the agency relationship may be sued for damages, termination of the
contract, and/or non-payment of the commission.
Undisclosed dual agency is: ✔Correct Answer-a violation of the TRELA.
What is the composition of the Broker-Lawyer Committee? ✔Correct Answer-Six broker
members are appointed by the Texas Real Estate Commission; six attorney members are
,appointed by the President of the State Bar of Texas. The appointees serve a term of six years
with one-third of them being appointed every two years.
A licensee must disclose any existing agency relationships to a new client. This disclosure:
✔Correct Answer-may be done orally or in writing.
A broker may do which of the following for an individual without actually representing the
individual? ✔Correct Answer-A broker may obtain financing, assist in locating a property, and
prepare a contract or lease for an individual without representing the individual.
A real estate licensee must notify the real estate program manager if: ✔Correct Answer-A
licensee must notify the real estate program manager within 20 days of receiving any criminal
complaint, information, indictment, or conviction in which the licensee is named as a
defendant; or entry of a civil court order, verdict, or judgment, against the licensee in any court
of competent jurisdiction in which the subject matter therein involves any real estate or
business-related activity by the licensee.
Pamela, who lives in a suburb in which many homes are rented, decides to open a rental agency
in order to assist her friends in finding suitable renters. Pamela's conduct is ✔Correct Answer-
unacceptable because it involves an activity for which a real estate license is required.
The sole broker of a brokerage firm has his or her real estate license suspended for two years.
What would happen to the licenses of the salespersons affiliated with this broker? ✔Correct
Answer-If the broker's license is suspended or revoked, the salespersons' licenses are made
inactive and must be returned to the commission. A salesperson's license may be made active
when the salesperson is sponsored by a new broker.
Which agency is responsible for the contract forms used by Texas licensees? ✔Correct
Answer-The Texas Real Estate Commission
A community property with rights of survivorship agreement must: ✔Correct Answer-doesn't
need to go through probate, must be signed by both spouses, must include the property
description, be in writing, contain wording that makes evident the intent of survivorship, and be
recorded in the county courthouse.
Generally, the most important responsibility of an agent is to: ✔Correct Answer-represent the
financial interests of the client.
Broker Bea recently entered into a listing contract with Seller Sally. Broker Bea just learned that
Sally is actually 17 years old and not married. The listing contract is: ✔Correct Answer-
voidable at the option of the minor.
Which of the following people would need to obtain a real estate license if they were involved
in a real estate activity?
, A. the executor of an estate
B. a court-appointed guardian
C. a trustee of the bankruptcy court
D. one who sells lots in a mobile home park ✔Correct Answer-D. The sale of land/lots is an act
of brokerage and requires that one have a license if he or she is not the owner of the lot. The
other three answers are listed as people who do not need a license in Section 3 of the Texas
Real Estate License Act.
An agency relationship may be terminated by ✔Correct Answer-expiration of time,
agreement, rescission, abandonment, or by the death of either party.
A property owner may claim a homeowner's exemption in Texas on a residence that is both
owned and occupied. The exemption reduces the assessed value of the residence by
✔Correct Answer-$7,000 dollars
A broker must maintain a place of business in the state of Texas. If the location changes, the
broker has how long to notify the commission? ✔Correct Answer-The broker must notify the
commission of any change of address within 10 days.
What happens when an applicant for licensure has failed to pass the competency examination
within the prescribed six-month period? ✔Correct Answer-The applicant must submit a new
application meeting all current requirements.
The written disclosure of agency relationships is not required if the: ✔Correct Answer-
proposed transaction is for a residential lease for not more than one year and no sale is being
considered. Disclosure is also not required if the licensee meets with a party who is represented
by another licensee.
An agency relationship may be created in all of the following ways except:
A. by ratification.
B. by estoppel.
C. by apparent authority
D. by assumed authority ✔Correct Answer-D. An agency relationship may be created in all of
these ways except for by assumed authority.
Dave defaulted on his mortgage loan and the property was ordered to be sold at a foreclosure
sale. Dave may redeem his property: ✔Correct Answer-A property owner in default may
redeem his or her property up until the property is sold, under the equitable right of
redemption.
What should a real estate broker do with licenses coming into his or her possession?
✔Correct Answer-prominently display them in his or her place of business
100% Verified Answers |Actual Complete Update |
Already Graded A+
Who is responsible for any wrongs done by a salesperson while acting within the scope of the
agency agreement? ✔Correct Answer-The broker is liable for the wrongdoing of his or her
salespersons. The principal is liable for any wrongs committed by the broker while acting within
the scope of the agency agreement.
what is the distinction between sales contracts and option contracts? ✔Correct Answer-One
characteristic of sales contracts is mutual obligation. Option contracts lack mutual obligation.
The buyer in an option contract is not obligated to buy.
A listing agreement must contain: ✔Correct Answer-a standard street address is sufficient.
If the commission investigates a complaint and determines that an individual's real estate
license should be suspended or revoked, the licensee is entitled to a hearing before the
commission within how many days after the commission reaches its decision? ✔Correct
Answer-A licensee who faces suspension or revocation of their license is entitled to a hearing
within 30 days of the commission reaching their decision.
Which of the licensed entities does not fall under the regulatory authority of the Texas Real
Estate Commission? ✔Correct Answer-The Texas Appraiser Licensing and Certification Board
has jurisdiction over state licensed and certified appraisers. In addition to licensing brokers and
salespersons, the Texas Real Estate Commission is responsible for licensing real estate
inspectors and for regulation of companies that sell and issue residential service contracts
("home warranties"). (Article 65736, Vernon's Texas Civil Statutes.
A licensee in Texas may not practice law, unless licensed and authorized to do so in Texas.
Practicing law includes altering contracts, or drawing up: ✔Correct Answer-a deed, deed of
trust, will, or other written instrument that may transfer or affect the title to land.
What penalties may a licensee who breaches the agency relationship face? ✔Correct Answer-
A licensee who breaches the agency relationship may be sued for damages, termination of the
contract, and/or non-payment of the commission.
Undisclosed dual agency is: ✔Correct Answer-a violation of the TRELA.
What is the composition of the Broker-Lawyer Committee? ✔Correct Answer-Six broker
members are appointed by the Texas Real Estate Commission; six attorney members are
,appointed by the President of the State Bar of Texas. The appointees serve a term of six years
with one-third of them being appointed every two years.
A licensee must disclose any existing agency relationships to a new client. This disclosure:
✔Correct Answer-may be done orally or in writing.
A broker may do which of the following for an individual without actually representing the
individual? ✔Correct Answer-A broker may obtain financing, assist in locating a property, and
prepare a contract or lease for an individual without representing the individual.
A real estate licensee must notify the real estate program manager if: ✔Correct Answer-A
licensee must notify the real estate program manager within 20 days of receiving any criminal
complaint, information, indictment, or conviction in which the licensee is named as a
defendant; or entry of a civil court order, verdict, or judgment, against the licensee in any court
of competent jurisdiction in which the subject matter therein involves any real estate or
business-related activity by the licensee.
Pamela, who lives in a suburb in which many homes are rented, decides to open a rental agency
in order to assist her friends in finding suitable renters. Pamela's conduct is ✔Correct Answer-
unacceptable because it involves an activity for which a real estate license is required.
The sole broker of a brokerage firm has his or her real estate license suspended for two years.
What would happen to the licenses of the salespersons affiliated with this broker? ✔Correct
Answer-If the broker's license is suspended or revoked, the salespersons' licenses are made
inactive and must be returned to the commission. A salesperson's license may be made active
when the salesperson is sponsored by a new broker.
Which agency is responsible for the contract forms used by Texas licensees? ✔Correct
Answer-The Texas Real Estate Commission
A community property with rights of survivorship agreement must: ✔Correct Answer-doesn't
need to go through probate, must be signed by both spouses, must include the property
description, be in writing, contain wording that makes evident the intent of survivorship, and be
recorded in the county courthouse.
Generally, the most important responsibility of an agent is to: ✔Correct Answer-represent the
financial interests of the client.
Broker Bea recently entered into a listing contract with Seller Sally. Broker Bea just learned that
Sally is actually 17 years old and not married. The listing contract is: ✔Correct Answer-
voidable at the option of the minor.
Which of the following people would need to obtain a real estate license if they were involved
in a real estate activity?
, A. the executor of an estate
B. a court-appointed guardian
C. a trustee of the bankruptcy court
D. one who sells lots in a mobile home park ✔Correct Answer-D. The sale of land/lots is an act
of brokerage and requires that one have a license if he or she is not the owner of the lot. The
other three answers are listed as people who do not need a license in Section 3 of the Texas
Real Estate License Act.
An agency relationship may be terminated by ✔Correct Answer-expiration of time,
agreement, rescission, abandonment, or by the death of either party.
A property owner may claim a homeowner's exemption in Texas on a residence that is both
owned and occupied. The exemption reduces the assessed value of the residence by
✔Correct Answer-$7,000 dollars
A broker must maintain a place of business in the state of Texas. If the location changes, the
broker has how long to notify the commission? ✔Correct Answer-The broker must notify the
commission of any change of address within 10 days.
What happens when an applicant for licensure has failed to pass the competency examination
within the prescribed six-month period? ✔Correct Answer-The applicant must submit a new
application meeting all current requirements.
The written disclosure of agency relationships is not required if the: ✔Correct Answer-
proposed transaction is for a residential lease for not more than one year and no sale is being
considered. Disclosure is also not required if the licensee meets with a party who is represented
by another licensee.
An agency relationship may be created in all of the following ways except:
A. by ratification.
B. by estoppel.
C. by apparent authority
D. by assumed authority ✔Correct Answer-D. An agency relationship may be created in all of
these ways except for by assumed authority.
Dave defaulted on his mortgage loan and the property was ordered to be sold at a foreclosure
sale. Dave may redeem his property: ✔Correct Answer-A property owner in default may
redeem his or her property up until the property is sold, under the equitable right of
redemption.
What should a real estate broker do with licenses coming into his or her possession?
✔Correct Answer-prominently display them in his or her place of business
