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ULTIMATE TEXAS LIFE & HEALTH INSURANCE
PEARSON VUE PREP 300+ REAL QUESTIONS AND
ANSWERS | 2026 QUESTION BANK | OAC/TIC
REGULATIONS | GRADED A+ REVIEW
In stating a seller's price and terms to a prospective buyer, the seller's broker is required by
the law of agency to state ONLY those terms that are
a. included in the listing agreement
b. based on the brokers evaluation of prevailing prices and terms
c. favorable for the seller, as determined by the broker
d. attractive to buyers, as determined by the broker
a. included in the listing agreement
a lot measuring 110 feet wide by 140 feet deep has a required setback of 30 feet in front, 20
feet in the rear, and 20 feet on each side. if a builder wants to put a one-story building on
the lot, the MAXIMUM square footage it can contain is
a. 3,300 sq ft
b. 3,600 sq ft
c. 6,300 sq ft
d. 6,600 sq ft
c. 6,300 sq ft
a house with a market value of $80,000 is located where property is assessed at 70% of
market value. if the tax rate is $4 per $100 of assessed value, the property taxes are
a. $224
b. $960
c. $2,240
d. $3,200
c. $2,240
a broker charges a leasing fee of one-half of the first months rent and a management fee of
8% of all rents collected. the broker negotiates a two-year lease at a monthly rental of $550.
which of the following amounts will the broker earn on this lease
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a. $1,378
b $1,331
c. $1,287
d. $1,056
b. $1,331
a property manager works in the BEST interests of the
a. tenant
b. owner
c. agent
d. bank
b. owner
in reviewing the deed to a listed property, a licensee noted a number of limitations
regarding its use. these limitations aare commonly known as:
A. Codicils
B. constraints
C. building codes
D. restricted covenants
D. Restricted covenants
the price at which a willing and informed buyer would buy and a willing and informed
seller would sell is called the
a. assessed value
b. book value
c. income approach to value
d. market value
d. market value
the income approach is MOST likely to be used when determining the value of a
A. vacant residential lot
b. office building
c. single-family home
d. cooperative apartment
b. office building
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the G's purchased a house from the T's. the G's agreed to the following terms: monthly
payments of $650 to the T's and the balance to be paid in full after 7 years. at the time the
balance is paid, the T's will give the G's a warranty deed transferring title. in this situation,
what type of financing was used
a. fha loan
b. wrap around mortgage
c. package mortgage
d. contract for deed
d. contract for deed
the provision in a mortgage or deed of trust that gives the lender the right to call the entire
balance due upon a default in any payment is called a:
a. acceleration clause
b. prepayment penalty clause
c. prepayment priveledge clause
d. right of redemption clause
a. acceleration clause
a broker who represents a buyer is trying to negotiate on the buyer's behalf in a potential
transaction. the broker realizes that by negotiating a reduced price for the buyer, the
broker's commission will also be reduced. in this situation, the broker is obligated to
negotiate the BEST price for the
A. buyer and broker
b. buyer
c. seller
d. brokerage
b. buyer
K and R bought a house as tenants in common. If K dies, which of the following statements
about ownership of the house is CORRECT?
a. it automatically becomes tenancy in severalty
b. it is divided, with R retaining R's original interest and the balance going to K's estate
C. R holds fee simple ownership in k's share of the property
d. R holds life estate ownership in K's share of the property
B. it is divided, with R retaining R's original interest and the balance going to K's estate
, 4|Page
a visually-impaired person with a service animal completes an application for rental of an
apartment that has a vigorously enforced "no pets" policy in the building. according to the
federal fair housing act the owner MAY:
a. refuse to rent as a result of policy
b. require the person to house the animal outside
c. require the person to restore any damage that results from the animal
d. increase the customary security deposit
c. require the person to restore any damage that results from the animal
Under a sales contract, the legal remedy that may be used to force the seller to consummate
the sale is called
a. adverse possession
b. foreclosure
c. specific performance
d. forcible detainer
c. specific performance
a developer who leases real property from the owner with the intent of constructing an
office building has which of the following interests in the property?
a. leased fee
b. leasehold
c. sale and leaseback
d. lease option
b. leasehold
the owners of a house sign a listing agreement and later tell the licensee that the garage roof
leaks. if they tell the licensee not to reveal the roof's condition to any prospective buyers the
licensee MUST
a. abide by the owners request
b. advise the sellers that they must disclose the condition of the roof to prospective buyers
c. advice only those prospective buyers who ask about the roof
d. refer all prospective buyers who have questions about the roofs condition to sellers
b. advise the sellers that they must disclose the condition of the roof to prospective buyers
which type of mortgage loan has provisions for periodic changes in the amount of the
payment, the interest rate, the maturity date, and the remaining balance owed?
ULTIMATE TEXAS LIFE & HEALTH INSURANCE
PEARSON VUE PREP 300+ REAL QUESTIONS AND
ANSWERS | 2026 QUESTION BANK | OAC/TIC
REGULATIONS | GRADED A+ REVIEW
In stating a seller's price and terms to a prospective buyer, the seller's broker is required by
the law of agency to state ONLY those terms that are
a. included in the listing agreement
b. based on the brokers evaluation of prevailing prices and terms
c. favorable for the seller, as determined by the broker
d. attractive to buyers, as determined by the broker
a. included in the listing agreement
a lot measuring 110 feet wide by 140 feet deep has a required setback of 30 feet in front, 20
feet in the rear, and 20 feet on each side. if a builder wants to put a one-story building on
the lot, the MAXIMUM square footage it can contain is
a. 3,300 sq ft
b. 3,600 sq ft
c. 6,300 sq ft
d. 6,600 sq ft
c. 6,300 sq ft
a house with a market value of $80,000 is located where property is assessed at 70% of
market value. if the tax rate is $4 per $100 of assessed value, the property taxes are
a. $224
b. $960
c. $2,240
d. $3,200
c. $2,240
a broker charges a leasing fee of one-half of the first months rent and a management fee of
8% of all rents collected. the broker negotiates a two-year lease at a monthly rental of $550.
which of the following amounts will the broker earn on this lease
,2|Page
a. $1,378
b $1,331
c. $1,287
d. $1,056
b. $1,331
a property manager works in the BEST interests of the
a. tenant
b. owner
c. agent
d. bank
b. owner
in reviewing the deed to a listed property, a licensee noted a number of limitations
regarding its use. these limitations aare commonly known as:
A. Codicils
B. constraints
C. building codes
D. restricted covenants
D. Restricted covenants
the price at which a willing and informed buyer would buy and a willing and informed
seller would sell is called the
a. assessed value
b. book value
c. income approach to value
d. market value
d. market value
the income approach is MOST likely to be used when determining the value of a
A. vacant residential lot
b. office building
c. single-family home
d. cooperative apartment
b. office building
,3|Page
the G's purchased a house from the T's. the G's agreed to the following terms: monthly
payments of $650 to the T's and the balance to be paid in full after 7 years. at the time the
balance is paid, the T's will give the G's a warranty deed transferring title. in this situation,
what type of financing was used
a. fha loan
b. wrap around mortgage
c. package mortgage
d. contract for deed
d. contract for deed
the provision in a mortgage or deed of trust that gives the lender the right to call the entire
balance due upon a default in any payment is called a:
a. acceleration clause
b. prepayment penalty clause
c. prepayment priveledge clause
d. right of redemption clause
a. acceleration clause
a broker who represents a buyer is trying to negotiate on the buyer's behalf in a potential
transaction. the broker realizes that by negotiating a reduced price for the buyer, the
broker's commission will also be reduced. in this situation, the broker is obligated to
negotiate the BEST price for the
A. buyer and broker
b. buyer
c. seller
d. brokerage
b. buyer
K and R bought a house as tenants in common. If K dies, which of the following statements
about ownership of the house is CORRECT?
a. it automatically becomes tenancy in severalty
b. it is divided, with R retaining R's original interest and the balance going to K's estate
C. R holds fee simple ownership in k's share of the property
d. R holds life estate ownership in K's share of the property
B. it is divided, with R retaining R's original interest and the balance going to K's estate
, 4|Page
a visually-impaired person with a service animal completes an application for rental of an
apartment that has a vigorously enforced "no pets" policy in the building. according to the
federal fair housing act the owner MAY:
a. refuse to rent as a result of policy
b. require the person to house the animal outside
c. require the person to restore any damage that results from the animal
d. increase the customary security deposit
c. require the person to restore any damage that results from the animal
Under a sales contract, the legal remedy that may be used to force the seller to consummate
the sale is called
a. adverse possession
b. foreclosure
c. specific performance
d. forcible detainer
c. specific performance
a developer who leases real property from the owner with the intent of constructing an
office building has which of the following interests in the property?
a. leased fee
b. leasehold
c. sale and leaseback
d. lease option
b. leasehold
the owners of a house sign a listing agreement and later tell the licensee that the garage roof
leaks. if they tell the licensee not to reveal the roof's condition to any prospective buyers the
licensee MUST
a. abide by the owners request
b. advise the sellers that they must disclose the condition of the roof to prospective buyers
c. advice only those prospective buyers who ask about the roof
d. refer all prospective buyers who have questions about the roofs condition to sellers
b. advise the sellers that they must disclose the condition of the roof to prospective buyers
which type of mortgage loan has provisions for periodic changes in the amount of the
payment, the interest rate, the maturity date, and the remaining balance owed?
