TEXAS REAL ESTATE LICENSE ACTUAL EXAM 2025|183 QUESTIONS
WITH ACCURATE SOLUTIONS
1. A real estate agent shows a property to a potential buyer without a
formal agreement in place. The buyer later assumes that the agent is
representing them. What type of agency relationship might this scenario
illustrate, and what are the potential legal implications for the agent?
Express agency; the agent is fully protected by the law.
Ostensible agency; the agent may be held liable
for misrepresentation.
Implied agency; the agent has no responsibilities.
Dual agency; the agent must disclose all parties involved.
2. The employment agreement between a broker and salesperson
must contain all of the following except:
- an agreement to arbitrate any future differences
- the terms of the salesperson's compensation, salary, etc
- an agreement as to how transactions in progress will be
compensated if the employment agreement is terminated the funds
have cleared
- a promise to pay the salespersons commissions within 10
days after its received by the broker
3. The Information About Brokerage Services (IABS) form is a disclosure
that is required to be given to a potential client:
at the time of the first substantive dialogue
at the time the written agreement is signed
before an offer is written
before the close of escrow
,4. Explain the role of a principal in a real estate agency relationship and
how it differs from that of an agent.
The principal is responsible for managing the agency, while the
agent executes the transactions.
The principal hires the agent to act on their behalf, while the
agent represents the interests of the principal.
The principal and agent have equal responsibilities in the
transaction.
The principal is the one who sells the property, while the agent only
provides advice.
5. A broker owes a client and a customer the following
duties: to deal honestly and fairly
to account for all monies handheld
to disclose any material facts
all of the above
6. A real estate sales agent, under the Texas Real Estate License Act, may
Take a listing in the name of the broker.
Accept compensation from real estate owners
Both A and B
Neither A nor B
7. If a buyer or tenant inquires about whether a previous owner or
occupant had AIDS, the agent
May either decline to answer or respond honestly
Is prohibited by fair housing laws from answering such an inquiry
because persons with AIDS are considered to be handicapped
under such laws
,8. Which of the following is a required element that must be included in
a listing agreement according to Texas real estate regulations?
The estimated market value of the property
The legal description of the property
The seller's financial history
The buyer's personal information
9. A broker usually establishes buyer representation through a form known
as a(n):
IABS
Buyer Representation Agreement
Dual agency form
Buyer counseling form
10. If a real estate salesperson does not have a written contract stating
they are an independent contractor, what potential implications could
arise regarding their employment status?
They may be classified as an employee, leading to tax liabilities
for the broker.
They will automatically receive a higher commission
rate. They can freely advertise without restrictions.
They will be exempt from all licensing requirements.
11. The listing agreement between the broker and seller addresses
commissions in two areas: First, the agreement stipulates the fee that the
broker will be paid if the property sells during the listing period. The fee is
most often stated as a _____________ of the final sales price.
A. Fixed price
B. Percentage
, C. Both A & B
D. None of the above
12. In regard to fraudulent billing, knowing or knowingly means that a
person, with respect to information:
Has actual knowledge of the information
Acts in deliberate ignorance
Acts in a reckless regard of the truth or falsity of the information
All of the above
13. What is the required timing for a licensee to present the information
about brokerage services form in Texas?
At the initial meeting with the
client Before any advertising
takes place
At the first substantive discussion of a possible transaction
After the transaction is completed
14. A license holder who represents a party in a proposed transaction shall
disclose orally or in writing that representation
When showing property to a buyer
At first contact with another party
After receiving an offer
At the first substantive discussion of real estate
15. What document should a seller complete to disclose property conditions
in Texas real estate transactions?
Seller's Disclosure Notice
Listing Agreement
WITH ACCURATE SOLUTIONS
1. A real estate agent shows a property to a potential buyer without a
formal agreement in place. The buyer later assumes that the agent is
representing them. What type of agency relationship might this scenario
illustrate, and what are the potential legal implications for the agent?
Express agency; the agent is fully protected by the law.
Ostensible agency; the agent may be held liable
for misrepresentation.
Implied agency; the agent has no responsibilities.
Dual agency; the agent must disclose all parties involved.
2. The employment agreement between a broker and salesperson
must contain all of the following except:
- an agreement to arbitrate any future differences
- the terms of the salesperson's compensation, salary, etc
- an agreement as to how transactions in progress will be
compensated if the employment agreement is terminated the funds
have cleared
- a promise to pay the salespersons commissions within 10
days after its received by the broker
3. The Information About Brokerage Services (IABS) form is a disclosure
that is required to be given to a potential client:
at the time of the first substantive dialogue
at the time the written agreement is signed
before an offer is written
before the close of escrow
,4. Explain the role of a principal in a real estate agency relationship and
how it differs from that of an agent.
The principal is responsible for managing the agency, while the
agent executes the transactions.
The principal hires the agent to act on their behalf, while the
agent represents the interests of the principal.
The principal and agent have equal responsibilities in the
transaction.
The principal is the one who sells the property, while the agent only
provides advice.
5. A broker owes a client and a customer the following
duties: to deal honestly and fairly
to account for all monies handheld
to disclose any material facts
all of the above
6. A real estate sales agent, under the Texas Real Estate License Act, may
Take a listing in the name of the broker.
Accept compensation from real estate owners
Both A and B
Neither A nor B
7. If a buyer or tenant inquires about whether a previous owner or
occupant had AIDS, the agent
May either decline to answer or respond honestly
Is prohibited by fair housing laws from answering such an inquiry
because persons with AIDS are considered to be handicapped
under such laws
,8. Which of the following is a required element that must be included in
a listing agreement according to Texas real estate regulations?
The estimated market value of the property
The legal description of the property
The seller's financial history
The buyer's personal information
9. A broker usually establishes buyer representation through a form known
as a(n):
IABS
Buyer Representation Agreement
Dual agency form
Buyer counseling form
10. If a real estate salesperson does not have a written contract stating
they are an independent contractor, what potential implications could
arise regarding their employment status?
They may be classified as an employee, leading to tax liabilities
for the broker.
They will automatically receive a higher commission
rate. They can freely advertise without restrictions.
They will be exempt from all licensing requirements.
11. The listing agreement between the broker and seller addresses
commissions in two areas: First, the agreement stipulates the fee that the
broker will be paid if the property sells during the listing period. The fee is
most often stated as a _____________ of the final sales price.
A. Fixed price
B. Percentage
, C. Both A & B
D. None of the above
12. In regard to fraudulent billing, knowing or knowingly means that a
person, with respect to information:
Has actual knowledge of the information
Acts in deliberate ignorance
Acts in a reckless regard of the truth or falsity of the information
All of the above
13. What is the required timing for a licensee to present the information
about brokerage services form in Texas?
At the initial meeting with the
client Before any advertising
takes place
At the first substantive discussion of a possible transaction
After the transaction is completed
14. A license holder who represents a party in a proposed transaction shall
disclose orally or in writing that representation
When showing property to a buyer
At first contact with another party
After receiving an offer
At the first substantive discussion of real estate
15. What document should a seller complete to disclose property conditions
in Texas real estate transactions?
Seller's Disclosure Notice
Listing Agreement
