TREC TEST STUDY QUESTIONS &
ANSWERS
Under the Texas Real Estate License Act, persons required to hold a license include a(n) -
ANSWERSreal estate broker operating out of her home.
The Texas Real Estate Commission (TREC) is composed of how many members? - ANSWERSNine
A brokerage firm works with only buyer-clients. It advertises that it rebates 1% of its commission
to its buyer-client. This is - ANSWERSlegal.
A licensee advises or counsels a person on the validity or legal sufficiency of an instrument or on
the validity of title to real estate. This is known as - ANSWERSthe unlicensed practice of law
The acts and conduct of a real estate salesperson, associated with (or acting for) a broker, are
the responsibility of the - ANSWERSreal estate broker.
If the broker acts as an intermediary between parties, what is true? - ANSWERSThe broker may
not disclose that the owner will accept a price less than the asking price, unless authorized (in
writing) to do so by the owner.
A licensee has the duty to inquire about, make a disclosure related to, or release information
related to - ANSWERSa death on the property as a result of a murder.
An agent for the buyer does NOT have to inform the buyer of - ANSWERSa suggestion of the
lowest price that the buyer should pay based on the list price of the property.
, An example of a document that creates agency at the broker level is commonly referred to as
a(n) - ANSWERSlisting agreement.
The contract forms promulgated by the Texas Real Estate Commission place the risk of loss due
to damage to the property or destruction of the property, prior to closing, on whom? -
ANSWERSThe seller
The clause in a real estate contract referring to "property condition" does NOT -
ANSWERSprovide for a buyer to establish procedures for completion of repairs in the event the
Seller does not perform repairs.
A licensee is asked by the seller to paraphrase a provision regarding a lease, and then insert it
into the base contract. The licensee should - ANSWERSrefuse to paraphrase any provision but
instead use the appropriate promulgated addendum or lease form, or one that is required and
provided by a principal to the contract.
Which law was specifically made applicable to real estate transactions in 1975, which prohibited
a number of false or misleading acts or practices? - ANSWERSDeceptive Trade Practices Act
In Texas, land that is owned and occupied as the family home may be protected or exempt from
forced sale by creditors for judgments for debts. This is referred to as - ANSWERShomestead.
What power does the government exercise when it takes private property for public use? -
ANSWERSEminent domain
What event will create an involuntary life estate? - ANSWERSDower interest becoming cohate
Of the following, which is not an encumbrance? - ANSWERSLicense
ANSWERS
Under the Texas Real Estate License Act, persons required to hold a license include a(n) -
ANSWERSreal estate broker operating out of her home.
The Texas Real Estate Commission (TREC) is composed of how many members? - ANSWERSNine
A brokerage firm works with only buyer-clients. It advertises that it rebates 1% of its commission
to its buyer-client. This is - ANSWERSlegal.
A licensee advises or counsels a person on the validity or legal sufficiency of an instrument or on
the validity of title to real estate. This is known as - ANSWERSthe unlicensed practice of law
The acts and conduct of a real estate salesperson, associated with (or acting for) a broker, are
the responsibility of the - ANSWERSreal estate broker.
If the broker acts as an intermediary between parties, what is true? - ANSWERSThe broker may
not disclose that the owner will accept a price less than the asking price, unless authorized (in
writing) to do so by the owner.
A licensee has the duty to inquire about, make a disclosure related to, or release information
related to - ANSWERSa death on the property as a result of a murder.
An agent for the buyer does NOT have to inform the buyer of - ANSWERSa suggestion of the
lowest price that the buyer should pay based on the list price of the property.
, An example of a document that creates agency at the broker level is commonly referred to as
a(n) - ANSWERSlisting agreement.
The contract forms promulgated by the Texas Real Estate Commission place the risk of loss due
to damage to the property or destruction of the property, prior to closing, on whom? -
ANSWERSThe seller
The clause in a real estate contract referring to "property condition" does NOT -
ANSWERSprovide for a buyer to establish procedures for completion of repairs in the event the
Seller does not perform repairs.
A licensee is asked by the seller to paraphrase a provision regarding a lease, and then insert it
into the base contract. The licensee should - ANSWERSrefuse to paraphrase any provision but
instead use the appropriate promulgated addendum or lease form, or one that is required and
provided by a principal to the contract.
Which law was specifically made applicable to real estate transactions in 1975, which prohibited
a number of false or misleading acts or practices? - ANSWERSDeceptive Trade Practices Act
In Texas, land that is owned and occupied as the family home may be protected or exempt from
forced sale by creditors for judgments for debts. This is referred to as - ANSWERShomestead.
What power does the government exercise when it takes private property for public use? -
ANSWERSEminent domain
What event will create an involuntary life estate? - ANSWERSDower interest becoming cohate
Of the following, which is not an encumbrance? - ANSWERSLicense
