RealEstateU: Texas Real Estate Principles
Part 1 Final Exam| 90 questions| with
complete solutions
Course
Texas Real Estate Principles
1. Which of the following is required to obtain a Texas real estate salesperson license?
A) Be at least 21 years old
B) Complete 180 hours of pre-licensing education
C) Have a bachelor's degree in business
D) Submit proof of employment with a broker before applying
Solution:
Correct answer: B) Complete 180 hours of pre-licensing education.
Texas Real Estate Commission (TREC) requires applicants to complete 180 hours of
coursework before applying for a real estate license.
2. A property is sold "as is." What does this mean for the buyer?
A) The seller must fix any major defects before closing.
B) The seller is not responsible for any repairs or issues.
C) The buyer can cancel the contract if they find defects.
D) The buyer cannot conduct an inspection.
Solution:
Correct answer: B) The seller is not responsible for any repairs or issues.
"As is" means the buyer accepts the property in its current condition, but sellers
must still disclose known defects.
3. A Texas real estate agent owes fiduciary duties to which party in a real estate
transaction?
A) The lender
B) The title company
C) The client (buyer or seller they represent)
D) The appraiser
Solution:
, Correct answer: C) The client (buyer or seller they represent).
A real estate agent must act in the best interests of their client, including loyalty,
confidentiality, and full disclosure.
4. What is the purpose of an earnest money deposit?
A) To serve as a non-refundable fee for the seller
B) To demonstrate the buyer’s good faith in the transaction
C) To cover closing costs in advance
D) To pay the agent’s commission
Solution:
Correct answer: B) To demonstrate the buyer’s good faith in the transaction.
Earnest money is a deposit made by the buyer to show they are serious about
purchasing the property.
5. Which type of listing agreement allows multiple brokers to market the property, but only
the broker who secures the buyer gets paid?
A) Exclusive right-to-sell listing
B) Exclusive agency listing
C) Open listing
D) Net listing
Solution:
Correct answer: C) Open listing.
With an open listing, multiple brokers can try to sell the property, but only the one
who brings the buyer earns a commission.
6. Which of the following is an example of a violation of the Fair Housing Act?
A) Refusing to rent to a tenant with a poor credit history
B) Declining an offer because it is too low
C) Denying a rental application based on the applicant’s race
D) Requiring a security deposit from all tenants
Solution:
, Correct answer: C) Denying a rental application based on the applicant’s race.
The Fair Housing Act prohibits discrimination based on race, color, religion, sex,
national origin, disability, and familial status.
7. In Texas, how long does a broker have to deposit earnest money into an escrow account?
A) 24 hours
B) 3 business days
C) 5 business days
D) 10 days
Solution:
Correct answer: B) 3 business days.
TREC rules require brokers to deposit earnest money into an escrow account within
three business days after the contract’s effective date.
8. What is the main purpose of title insurance?
A) To protect the lender against property damage
B) To guarantee that the property value will increase
C) To protect against ownership disputes or undisclosed liens
D) To ensure the home is free of defects
Solution:
Correct answer: C) To protect against ownership disputes or undisclosed liens.
Title insurance safeguards buyers and lenders from past ownership claims, unpaid
liens, or title defects.
9. Which type of deed provides the greatest level of protection to the buyer?
A) Quitclaim deed
B) Special warranty deed
C) General warranty deed
D) Bargain and sale deed
Solution:
Correct answer: C) General warranty deed.
Part 1 Final Exam| 90 questions| with
complete solutions
Course
Texas Real Estate Principles
1. Which of the following is required to obtain a Texas real estate salesperson license?
A) Be at least 21 years old
B) Complete 180 hours of pre-licensing education
C) Have a bachelor's degree in business
D) Submit proof of employment with a broker before applying
Solution:
Correct answer: B) Complete 180 hours of pre-licensing education.
Texas Real Estate Commission (TREC) requires applicants to complete 180 hours of
coursework before applying for a real estate license.
2. A property is sold "as is." What does this mean for the buyer?
A) The seller must fix any major defects before closing.
B) The seller is not responsible for any repairs or issues.
C) The buyer can cancel the contract if they find defects.
D) The buyer cannot conduct an inspection.
Solution:
Correct answer: B) The seller is not responsible for any repairs or issues.
"As is" means the buyer accepts the property in its current condition, but sellers
must still disclose known defects.
3. A Texas real estate agent owes fiduciary duties to which party in a real estate
transaction?
A) The lender
B) The title company
C) The client (buyer or seller they represent)
D) The appraiser
Solution:
, Correct answer: C) The client (buyer or seller they represent).
A real estate agent must act in the best interests of their client, including loyalty,
confidentiality, and full disclosure.
4. What is the purpose of an earnest money deposit?
A) To serve as a non-refundable fee for the seller
B) To demonstrate the buyer’s good faith in the transaction
C) To cover closing costs in advance
D) To pay the agent’s commission
Solution:
Correct answer: B) To demonstrate the buyer’s good faith in the transaction.
Earnest money is a deposit made by the buyer to show they are serious about
purchasing the property.
5. Which type of listing agreement allows multiple brokers to market the property, but only
the broker who secures the buyer gets paid?
A) Exclusive right-to-sell listing
B) Exclusive agency listing
C) Open listing
D) Net listing
Solution:
Correct answer: C) Open listing.
With an open listing, multiple brokers can try to sell the property, but only the one
who brings the buyer earns a commission.
6. Which of the following is an example of a violation of the Fair Housing Act?
A) Refusing to rent to a tenant with a poor credit history
B) Declining an offer because it is too low
C) Denying a rental application based on the applicant’s race
D) Requiring a security deposit from all tenants
Solution:
, Correct answer: C) Denying a rental application based on the applicant’s race.
The Fair Housing Act prohibits discrimination based on race, color, religion, sex,
national origin, disability, and familial status.
7. In Texas, how long does a broker have to deposit earnest money into an escrow account?
A) 24 hours
B) 3 business days
C) 5 business days
D) 10 days
Solution:
Correct answer: B) 3 business days.
TREC rules require brokers to deposit earnest money into an escrow account within
three business days after the contract’s effective date.
8. What is the main purpose of title insurance?
A) To protect the lender against property damage
B) To guarantee that the property value will increase
C) To protect against ownership disputes or undisclosed liens
D) To ensure the home is free of defects
Solution:
Correct answer: C) To protect against ownership disputes or undisclosed liens.
Title insurance safeguards buyers and lenders from past ownership claims, unpaid
liens, or title defects.
9. Which type of deed provides the greatest level of protection to the buyer?
A) Quitclaim deed
B) Special warranty deed
C) General warranty deed
D) Bargain and sale deed
Solution:
Correct answer: C) General warranty deed.
