TREC (State Exam) Questions and
Answers | Latest Version | 2025/2026 |
Correct & Verified
What fiduciary duty requires a Texas real estate licensee to follow a client’s lawful instructions
even when the licensee disagrees?
✔✔Obedience
What Texas disclosure must be provided at the first substantive contact with a consumer?
✔✔Information About Brokerage Services (IABS) notice
What type of listing gives one broker the right to earn a commission regardless of who finds the
buyer?
✔✔Exclusive right-to-sell listing
What estate in land gives ownership for an indefinite period and can be inherited?
✔✔Fee simple estate
What Texas law requires a seller to disclose known material defects of a residential property?
✔✔Seller’s Disclosure Notice requirement
Which entity appoints members of the Texas Real Estate Commission?
✔✔The Governor of Texas
1
,What term describes personal property that has been permanently attached to real estate?
✔✔Fixture
What happens to the option fee if the buyer terminates during the option period in Texas?
✔✔The seller keeps the option fee
What type of agency relationship arises through actions rather than a written agreement?
✔✔Implied agency
What document secures a promissory note in a Texas real estate transaction?
✔✔Deed of trust
What is the primary purpose of earnest money in a Texas contract?
✔✔To show the buyer’s good faith
What appraisal principle states that a buyer will not pay more for a property than for a
comparable substitute?
✔✔Principle of substitution
What form of co-ownership allows each owner to pass their interest to heirs?
✔✔Tenancy in common
2
,What is the maximum number of years a Texas real estate license is valid before renewal?
✔✔Two years
What authority allows the government to regulate land use through zoning?
✔✔Police power
What is the legal term for land plus everything permanently attached to it?
✔✔Real property
What type of easement benefits a specific parcel of land rather than a person?
✔✔Appurtenant easement
What document transfers legal title from seller to buyer?
✔✔Deed
What type of lien has priority over all other liens in Texas?
✔✔Property tax lien
What Texas fund compensates consumers harmed by the actions of a license holder?
✔✔Texas Real Estate Recovery Trust Account
3
, What type of contract exists when all parties still have performance remaining?
✔✔Executory contract
What must a broker do with trust funds received from clients?
✔✔Deposit them into a trust or escrow account
What term describes a contract that lacks legal force from the beginning?
✔✔Void contract
What appraisal approach is most commonly used for single-family residential property?
✔✔Sales comparison approach
What Texas disclosure is required for homes built before 1978?
✔✔Lead-based paint disclosure
What does “time is of the essence” mean in a Texas real estate contract?
✔✔All deadlines must be strictly met
What type of ownership is automatically created between spouses in Texas?
✔✔Community property
What does a survey primarily identify in a real estate transaction?
4
Answers | Latest Version | 2025/2026 |
Correct & Verified
What fiduciary duty requires a Texas real estate licensee to follow a client’s lawful instructions
even when the licensee disagrees?
✔✔Obedience
What Texas disclosure must be provided at the first substantive contact with a consumer?
✔✔Information About Brokerage Services (IABS) notice
What type of listing gives one broker the right to earn a commission regardless of who finds the
buyer?
✔✔Exclusive right-to-sell listing
What estate in land gives ownership for an indefinite period and can be inherited?
✔✔Fee simple estate
What Texas law requires a seller to disclose known material defects of a residential property?
✔✔Seller’s Disclosure Notice requirement
Which entity appoints members of the Texas Real Estate Commission?
✔✔The Governor of Texas
1
,What term describes personal property that has been permanently attached to real estate?
✔✔Fixture
What happens to the option fee if the buyer terminates during the option period in Texas?
✔✔The seller keeps the option fee
What type of agency relationship arises through actions rather than a written agreement?
✔✔Implied agency
What document secures a promissory note in a Texas real estate transaction?
✔✔Deed of trust
What is the primary purpose of earnest money in a Texas contract?
✔✔To show the buyer’s good faith
What appraisal principle states that a buyer will not pay more for a property than for a
comparable substitute?
✔✔Principle of substitution
What form of co-ownership allows each owner to pass their interest to heirs?
✔✔Tenancy in common
2
,What is the maximum number of years a Texas real estate license is valid before renewal?
✔✔Two years
What authority allows the government to regulate land use through zoning?
✔✔Police power
What is the legal term for land plus everything permanently attached to it?
✔✔Real property
What type of easement benefits a specific parcel of land rather than a person?
✔✔Appurtenant easement
What document transfers legal title from seller to buyer?
✔✔Deed
What type of lien has priority over all other liens in Texas?
✔✔Property tax lien
What Texas fund compensates consumers harmed by the actions of a license holder?
✔✔Texas Real Estate Recovery Trust Account
3
, What type of contract exists when all parties still have performance remaining?
✔✔Executory contract
What must a broker do with trust funds received from clients?
✔✔Deposit them into a trust or escrow account
What term describes a contract that lacks legal force from the beginning?
✔✔Void contract
What appraisal approach is most commonly used for single-family residential property?
✔✔Sales comparison approach
What Texas disclosure is required for homes built before 1978?
✔✔Lead-based paint disclosure
What does “time is of the essence” mean in a Texas real estate contract?
✔✔All deadlines must be strictly met
What type of ownership is automatically created between spouses in Texas?
✔✔Community property
What does a survey primarily identify in a real estate transaction?
4
