TEXAS REAL ESTATE FINAL EXAM (LATEST 2026
UPDATE) |QUESTIONS WITH CORRECT DETAILED
ANSWERS (MULTIPLE CHOICES) |ALREADY
GRADED A+
All of the following statements regarding the Texas Real Estate
Commission are true EXCEPT
A) examinations that must be taken by all applicants for real estate
licensing are currently administered by an independent testing
company rather than the Commission.
B) the Commission makes and enforces the rules by which all real
estate license holders must abide.
C) the state association of REALTORS® selects the members.
D) the Commission appoints an administrator and may designate an
assistant administrator to carry out the daily activities of the
Commission.
- Answer -the state association of REALTORS® selects the members.
The Texas Association of REALTOR® (TAR) does not select the Real
Estate Commission members.
Commissioners are appointed by the governor and approved by the senate. The
Commission is empowered to make and enforce rules. The examinations may
either be prepared or contracted for by the Commission. Currently they are
written under the supervision of the Commission and administered by an
independent testing company. TREC must appoint an administrator and may
designate an assistant administrator to carry out the day-to-day functions of the
Commission. However, TAR does make recommendations to the governor for
appointments to TREC.
A broker signs a listing agreement with a seller. The agreement
contains the following clause: "If the property has not been sold after
three months from the date of this signing, this agreement will
automatically continue for additional three-month periods thereafter
until the property is sold." Based on these facts, the agreement
pg. 1
,A) is legal under Texas law because the list periods are for fewer than
six months each.
B) provides grounds for loss of the broker's license.
C) automatically receives a statutory six month listing period to this
open listing in Texas.
D) is legal under Texas law because it contains a reference to a
specific time limit.
- Answer -provides grounds for loss of the broker's license.
Listings must contain a definite termination date not subject to prior notice or
the licensee could face TREC disciplinary action.
After real estate has been sold by the city or county to satisfy a
delinquent tax lien, the defaulted owner of a homestead usually has a
right to
A) have the sale canceled by paying the back taxes and penalties.
B) file a judgment lien against the purchaser at the tax foreclosure
sale.
C) redeem the property within a two-year time limit.
D) redeem the property within a three-year time limit.
- Answer -redeem the property within a two-year time limit.
Texas law provides for a statutory right of redemption (two years for homestead
property) after the tax sale during which the defaulted owner may redeem the
property by paying the amount paid at the tax sale, plus interest and other
charges, including 25% of the purchase price during the first year and 50%
during the second year.
In any real estate sales transaction that a broker negotiates, the broker
would be well advised to do all of the following EXCEPT
A) keep copies of all documents involved in the transaction in the
broker's files for five years after the year in which the transaction was
closed.
pg. 2
, B) provide the buyer the broker's personal opinion of the condition of
the seller's title to the property.
C) make sure that the closing statement is accurate and that a copy of
it is delivered to both the buyer and the seller.
D) make sure that the written purchase and sales agreement includes
all of the terms of the parties' agreement.
- Answer -provide the buyer the broker's personal opinion of the
condition of the seller's title to the property.
Offering an opinion of title is a legal opinion and would constitute the
Unauthorized Practice of Law.
In Texas, brokers and salespersons who are NOT lawyers may
A) complete a bill of sale after a sales contract has been signed.
B) suggest additional language to be added to a preprinted sales
contract by a buyer or seller.
C) fill in blanks on preprinted contract forms promulgated by the
Texas Real Estate Commission.
D) explain the legal significance of specific preprinted contract
clauses to a buyer or a seller.
- Answer -fill in blanks on preprinted contract forms promulgated by
the Texas Real Estate Commission.
Texas license holders must use TREC-promulgated forms, unless another is
required by the property owner or otherwise fits one of the four specific
exemptions under TREC Rules: TREC does not promulgate contract forms for
commercial transactions or leases, except for two temporary residential lease
forms which are part of a sales contract. The blanks may be filled in at the
direction of the consumers who make final decisions and sign the contract.
However, real estate license holders who are not lawyers must be careful to
avoid any appearance of the Unauthorized Practice of Law. The broker and
salespersons are special agents hired for a very narrow purpose, which does not
ordinarily include signing the name of the principal.
A ruling by TREC can be appealed to a district court.
pg. 3
, - Answer -True
TREC is authorized to settle commission
- Answer -False, the commission does not mediate disputes between
or among licensees concerning entitlement to sales commissions, nor
does it recommend individual licensees to the public.
TREC is authorized to hold hearings and subpoena witnesses. –
Answer -True
TREC has the power to suspend or revoke a license and to place on
probation or reprimand a license. - Answer -True
A real estate licensee may legally fill in contract forms that have been
promulgated by the Commission. - Answer -True
Contract forms are drafted and revised by the Real Estate Broker-
Lawyer Committee. - Answer -True
The Texas Real Estate Commission consist of nine members. -
Answer -True- The Texas Real Estate Commission (TREC) consists
of six brokers and three public members, appointed by the Governor
to staggered six-years terms.
The fund administered by TREC for reimbursing aggrieved persons
who suffer actual damages by acts committed by a licensee is the Real
Estate Recovery Trust Account - Answer -True
Each applicant pays a fee $100 at the time of application to the
recovery fund. - Answer -a $10 fee is paid to he recovery fund.
The recovery fund maximum per transaction is $50,000. - Answer -
True- The recovery fund maximum is $50,000 per transaction and
$100,000 per licensee, regardless of the number of claimants.
Licensees may use forms promulgated or approved by the
Commission, prepared by an attorney licensed in Texas, or prepared
by the property owner. - Answer -True
pg. 4
UPDATE) |QUESTIONS WITH CORRECT DETAILED
ANSWERS (MULTIPLE CHOICES) |ALREADY
GRADED A+
All of the following statements regarding the Texas Real Estate
Commission are true EXCEPT
A) examinations that must be taken by all applicants for real estate
licensing are currently administered by an independent testing
company rather than the Commission.
B) the Commission makes and enforces the rules by which all real
estate license holders must abide.
C) the state association of REALTORS® selects the members.
D) the Commission appoints an administrator and may designate an
assistant administrator to carry out the daily activities of the
Commission.
- Answer -the state association of REALTORS® selects the members.
The Texas Association of REALTOR® (TAR) does not select the Real
Estate Commission members.
Commissioners are appointed by the governor and approved by the senate. The
Commission is empowered to make and enforce rules. The examinations may
either be prepared or contracted for by the Commission. Currently they are
written under the supervision of the Commission and administered by an
independent testing company. TREC must appoint an administrator and may
designate an assistant administrator to carry out the day-to-day functions of the
Commission. However, TAR does make recommendations to the governor for
appointments to TREC.
A broker signs a listing agreement with a seller. The agreement
contains the following clause: "If the property has not been sold after
three months from the date of this signing, this agreement will
automatically continue for additional three-month periods thereafter
until the property is sold." Based on these facts, the agreement
pg. 1
,A) is legal under Texas law because the list periods are for fewer than
six months each.
B) provides grounds for loss of the broker's license.
C) automatically receives a statutory six month listing period to this
open listing in Texas.
D) is legal under Texas law because it contains a reference to a
specific time limit.
- Answer -provides grounds for loss of the broker's license.
Listings must contain a definite termination date not subject to prior notice or
the licensee could face TREC disciplinary action.
After real estate has been sold by the city or county to satisfy a
delinquent tax lien, the defaulted owner of a homestead usually has a
right to
A) have the sale canceled by paying the back taxes and penalties.
B) file a judgment lien against the purchaser at the tax foreclosure
sale.
C) redeem the property within a two-year time limit.
D) redeem the property within a three-year time limit.
- Answer -redeem the property within a two-year time limit.
Texas law provides for a statutory right of redemption (two years for homestead
property) after the tax sale during which the defaulted owner may redeem the
property by paying the amount paid at the tax sale, plus interest and other
charges, including 25% of the purchase price during the first year and 50%
during the second year.
In any real estate sales transaction that a broker negotiates, the broker
would be well advised to do all of the following EXCEPT
A) keep copies of all documents involved in the transaction in the
broker's files for five years after the year in which the transaction was
closed.
pg. 2
, B) provide the buyer the broker's personal opinion of the condition of
the seller's title to the property.
C) make sure that the closing statement is accurate and that a copy of
it is delivered to both the buyer and the seller.
D) make sure that the written purchase and sales agreement includes
all of the terms of the parties' agreement.
- Answer -provide the buyer the broker's personal opinion of the
condition of the seller's title to the property.
Offering an opinion of title is a legal opinion and would constitute the
Unauthorized Practice of Law.
In Texas, brokers and salespersons who are NOT lawyers may
A) complete a bill of sale after a sales contract has been signed.
B) suggest additional language to be added to a preprinted sales
contract by a buyer or seller.
C) fill in blanks on preprinted contract forms promulgated by the
Texas Real Estate Commission.
D) explain the legal significance of specific preprinted contract
clauses to a buyer or a seller.
- Answer -fill in blanks on preprinted contract forms promulgated by
the Texas Real Estate Commission.
Texas license holders must use TREC-promulgated forms, unless another is
required by the property owner or otherwise fits one of the four specific
exemptions under TREC Rules: TREC does not promulgate contract forms for
commercial transactions or leases, except for two temporary residential lease
forms which are part of a sales contract. The blanks may be filled in at the
direction of the consumers who make final decisions and sign the contract.
However, real estate license holders who are not lawyers must be careful to
avoid any appearance of the Unauthorized Practice of Law. The broker and
salespersons are special agents hired for a very narrow purpose, which does not
ordinarily include signing the name of the principal.
A ruling by TREC can be appealed to a district court.
pg. 3
, - Answer -True
TREC is authorized to settle commission
- Answer -False, the commission does not mediate disputes between
or among licensees concerning entitlement to sales commissions, nor
does it recommend individual licensees to the public.
TREC is authorized to hold hearings and subpoena witnesses. –
Answer -True
TREC has the power to suspend or revoke a license and to place on
probation or reprimand a license. - Answer -True
A real estate licensee may legally fill in contract forms that have been
promulgated by the Commission. - Answer -True
Contract forms are drafted and revised by the Real Estate Broker-
Lawyer Committee. - Answer -True
The Texas Real Estate Commission consist of nine members. -
Answer -True- The Texas Real Estate Commission (TREC) consists
of six brokers and three public members, appointed by the Governor
to staggered six-years terms.
The fund administered by TREC for reimbursing aggrieved persons
who suffer actual damages by acts committed by a licensee is the Real
Estate Recovery Trust Account - Answer -True
Each applicant pays a fee $100 at the time of application to the
recovery fund. - Answer -a $10 fee is paid to he recovery fund.
The recovery fund maximum per transaction is $50,000. - Answer -
True- The recovery fund maximum is $50,000 per transaction and
$100,000 per licensee, regardless of the number of claimants.
Licensees may use forms promulgated or approved by the
Commission, prepared by an attorney licensed in Texas, or prepared
by the property owner. - Answer -True
pg. 4
