TCOLE FINAL PAPER TEXAS COMMISSION ON
LAW ENFORCEMENT 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
◉ The principle of value most heavily relied upon for the
determination of market value in existing residential property is:
Answer: Substitution
◉ A borrower has obtained a loan amortized over 30 years , but the
borrower needs to pay it off in five years. This is most likely:
Answer: a balloon loan
◉ When entering a WB-36 Buyer Agency/Tenant Representation
Agreement: Answer: a licensee must give agency disclosure
◉ A borrower is obtaining a conventional loan for 95% of the
purchase price. Because of the 5% down payment, the buyer must
pay which of the following at closing? Answer: Private Mortgage
insurance (PMI)
◉ Which of the following is prohibited under the Real Estate
Settlement Procedures Act? Answer: A licensee received a fee from a
lender for the referral of a client.
,◉ Which of the following would not apply to a FHA or VA loan?
Answer: Legal title does not transfer to the borrower until the loan is
repaid in full to facilitate the government's foreclosure process.
◉ When determining whether a borrower is qualified to obtain
financing Answer: condition of the property the borrower wishes to
purchase
◉ Which lending source uses funds for loans that will be sold to the
secondary mortgage market? Answer: A bank
◉ Which of the following would not be considered a triggering
term? Answer: Nothing down
◉ A licensee would not do which of the following in regards to
secondary market mortgage fraud? Answer: Continue with the
transaction, placing the clients' interests first
◉ A selling licensee procured a buyer for another firm's listing. The
selling licensee is: Answer: An agent of listing firm
◉ What property does not need to have a tightness test conducted
on underground storage tanks? Answer: Properties with a tank of
less that 1,100 gallons
, ◉ Which of the following is not a requirement of a valid buyer
agency agreement? Answer: The signature of the buyer
◉ A listing agent typically works as a: Answer: Special agent
◉ A buyer would like to know how long a property has been listed.
This information: Answer: Should be given to the buyer by any
licensee in the transaction.
◉ A buyer's agent must disclose which of the following to a seller?
Answer: A buyer will be unable to complete the transaction.
◉ A property manager shows an apartment to a man in the morning
and a woman in the afternoon. There are no apartments available,
but the property manager offers to place the man's name on a
waiting list. The property manager does not tell the woman about
the waiting list. Has the property manager discriminated? Answer:
Yes, because the manager treated the man and woman differently.
◉ Which of the following statements is most correct regarding a
buyer and firm that have entered into the WB-36 Buyer
Agency/Tenant Representation agreement? Answer: If the buyer
purchases a property covered under the agreement, the buyer will
owe the firm compensation.
LAW ENFORCEMENT 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
◉ The principle of value most heavily relied upon for the
determination of market value in existing residential property is:
Answer: Substitution
◉ A borrower has obtained a loan amortized over 30 years , but the
borrower needs to pay it off in five years. This is most likely:
Answer: a balloon loan
◉ When entering a WB-36 Buyer Agency/Tenant Representation
Agreement: Answer: a licensee must give agency disclosure
◉ A borrower is obtaining a conventional loan for 95% of the
purchase price. Because of the 5% down payment, the buyer must
pay which of the following at closing? Answer: Private Mortgage
insurance (PMI)
◉ Which of the following is prohibited under the Real Estate
Settlement Procedures Act? Answer: A licensee received a fee from a
lender for the referral of a client.
,◉ Which of the following would not apply to a FHA or VA loan?
Answer: Legal title does not transfer to the borrower until the loan is
repaid in full to facilitate the government's foreclosure process.
◉ When determining whether a borrower is qualified to obtain
financing Answer: condition of the property the borrower wishes to
purchase
◉ Which lending source uses funds for loans that will be sold to the
secondary mortgage market? Answer: A bank
◉ Which of the following would not be considered a triggering
term? Answer: Nothing down
◉ A licensee would not do which of the following in regards to
secondary market mortgage fraud? Answer: Continue with the
transaction, placing the clients' interests first
◉ A selling licensee procured a buyer for another firm's listing. The
selling licensee is: Answer: An agent of listing firm
◉ What property does not need to have a tightness test conducted
on underground storage tanks? Answer: Properties with a tank of
less that 1,100 gallons
, ◉ Which of the following is not a requirement of a valid buyer
agency agreement? Answer: The signature of the buyer
◉ A listing agent typically works as a: Answer: Special agent
◉ A buyer would like to know how long a property has been listed.
This information: Answer: Should be given to the buyer by any
licensee in the transaction.
◉ A buyer's agent must disclose which of the following to a seller?
Answer: A buyer will be unable to complete the transaction.
◉ A property manager shows an apartment to a man in the morning
and a woman in the afternoon. There are no apartments available,
but the property manager offers to place the man's name on a
waiting list. The property manager does not tell the woman about
the waiting list. Has the property manager discriminated? Answer:
Yes, because the manager treated the man and woman differently.
◉ Which of the following statements is most correct regarding a
buyer and firm that have entered into the WB-36 Buyer
Agency/Tenant Representation agreement? Answer: If the buyer
purchases a property covered under the agreement, the buyer will
owe the firm compensation.
