2026 TEXAS REAL ESTATE FINAL EXAM (LATEST
UPDATE) |QUESTIONS WITH CORRECT DETAILED
ANSWERS (MULTIPLE CHOICES) |ALREADY
GRADED A+
Which statement BEST describes the role of a broker acting as an
intermediary in Texas?
A) The intermediary's duties are more restricted than a true agent's
duty to one principal.
B) The broker represents both the buyer and seller and may disclose
confidential information unless specifically instructed not to do so.
C) The intermediary must remain impartial to the interests of both
parties and must maintain confidentiality with both parties.
D) The broker is paid by the seller and must not disclose any
confidential information to the buyer. - Answer -Is the intermediary's
duties are more restricted than a true agent's duty to one principal.
The intermediary must remain impartial to the interests of both parties
and must maintain confidentiality with both parties. A real estate
broker acting as an intermediary is a limited agent of both parties and
is specifically prohibited from disclosing confidential information
unless instructed in writing or the information materially relates to the
condition of the property.
When must the broker or salesperson give the seller a written
Information About Brokerage Services form that explains agency
positions?
A) On the first substantive dialogue with the seller
B) Within three days after the initial meeting with the seller
C) On or before a sales contract is signed
D) At the time the listing agreement is signed
- Answer -on the first substantive dialogue with the seller.
pg. 1
,On the first substantive dialogue meeting with the seller, the broker or
salesperson must give the seller the written Information about
Brokerage Services form that explains agency positions.
Under Texas Deceptive Trade Practices Act a person who acquires
goods and services under the is identified as a
A) consumer.
B) client.
C) customer.
D) principal. - Answer -consumer.
Anyone who acquires goods and/or services for purchase or lease is
identified as a consumer under the statutory provisions.
When acting as an active broker or salesperson, a Texas real estate
licensee is permitted to do all of the following EXCEPT
A) add an addendum to a promulgated contract form.
B) draft a sales contract.
C) strike from a promulgated contract matter that is desired by the
principals.
D) add to a promulgated contract factual statements and business
details desired by the principals. - Answer -draft a sales contract.
TRELA provides a license shall be suspended or revoked by the
Commission if a licensee drafts any instrument (other than a form
described in TRELA) that transfers or otherwise affects an interest in
real property. The rules of the Commission, however, state that while
a licensee may not draw or prepare legal documents, the licensee may
fill in promulgated forms; add to a promulgated contract any factual
statements and business details desired by the parties; and add or
strike matter desired by the principals.
When assisting in the negotiation of a lease or rental of property for a
client, a licensee mat only use forms drafted by the licensee. - Answer
pg. 2
,-The form must be prepared by the Texas Real Estate Broker-Lawyer
Committee and adopted by and promulgated by TREC, prepared by a
Texas attorney, or prepared by the principal, unless the licensee is one
of the principals and is not acting as an agent in the transaction.
When negotiating a sale of real property for another person for a fee,
a licensee must, with a few expectations, use forms promulgated by
the Commission for that kind of transaction. - Answer -True
Numbered photocopies of forms obtained from the Commission are
acceptable sources for reproduced copies of standard forms. - Answer
-True
According to the statute of frauds, a contract of sale of real estate
must be in writing to be enforceable. - Answer -True
A legal procedure or action brought by either the buyer or the seller to
enforce the terms of contract is known as estoppel. - Answer -It is
known as a suit for specific performance.
Computer-driven printed copies, following mandatory guidelines, are
an acceptable source of TREC-promulgated forms. - Answer -True
The broker's name may be inserted in any blank provided for that
purpose. - Answer -True
The broker’s logo may appear in any place on the contract form
deemed appropriate by the broker. - Answer -The broker's logo may
appear at the top of a form and outside of the border of the contract
form.
A buyer is concerned about being contractually bound to buy a
property before selling his own property. His broker should write, in
the Special Provisions paragraph of the contract, a provision which
allows the buyer to terminate if his property is NOT sold first. -
Answer -The licensee assisting the parties to the contract should use
the Addendum for Sale of Other Property By Buyer form promulgated
by TREC for that purpose. To do as the question suggest would
constitute the unauthorized practice of law violate TRELA.
pg. 3
, Alternatively, either principal to the agreement may direct his attorney
to draw up a contingency on the sale of the buyer's property to protect
his client in that situation.
Rental income form separate property is community property. -
Answer -True
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. 4
UPDATE) |QUESTIONS WITH CORRECT DETAILED
ANSWERS (MULTIPLE CHOICES) |ALREADY
GRADED A+
Which statement BEST describes the role of a broker acting as an
intermediary in Texas?
A) The intermediary's duties are more restricted than a true agent's
duty to one principal.
B) The broker represents both the buyer and seller and may disclose
confidential information unless specifically instructed not to do so.
C) The intermediary must remain impartial to the interests of both
parties and must maintain confidentiality with both parties.
D) The broker is paid by the seller and must not disclose any
confidential information to the buyer. - Answer -Is the intermediary's
duties are more restricted than a true agent's duty to one principal.
The intermediary must remain impartial to the interests of both parties
and must maintain confidentiality with both parties. A real estate
broker acting as an intermediary is a limited agent of both parties and
is specifically prohibited from disclosing confidential information
unless instructed in writing or the information materially relates to the
condition of the property.
When must the broker or salesperson give the seller a written
Information About Brokerage Services form that explains agency
positions?
A) On the first substantive dialogue with the seller
B) Within three days after the initial meeting with the seller
C) On or before a sales contract is signed
D) At the time the listing agreement is signed
- Answer -on the first substantive dialogue with the seller.
pg. 1
,On the first substantive dialogue meeting with the seller, the broker or
salesperson must give the seller the written Information about
Brokerage Services form that explains agency positions.
Under Texas Deceptive Trade Practices Act a person who acquires
goods and services under the is identified as a
A) consumer.
B) client.
C) customer.
D) principal. - Answer -consumer.
Anyone who acquires goods and/or services for purchase or lease is
identified as a consumer under the statutory provisions.
When acting as an active broker or salesperson, a Texas real estate
licensee is permitted to do all of the following EXCEPT
A) add an addendum to a promulgated contract form.
B) draft a sales contract.
C) strike from a promulgated contract matter that is desired by the
principals.
D) add to a promulgated contract factual statements and business
details desired by the principals. - Answer -draft a sales contract.
TRELA provides a license shall be suspended or revoked by the
Commission if a licensee drafts any instrument (other than a form
described in TRELA) that transfers or otherwise affects an interest in
real property. The rules of the Commission, however, state that while
a licensee may not draw or prepare legal documents, the licensee may
fill in promulgated forms; add to a promulgated contract any factual
statements and business details desired by the parties; and add or
strike matter desired by the principals.
When assisting in the negotiation of a lease or rental of property for a
client, a licensee mat only use forms drafted by the licensee. - Answer
pg. 2
,-The form must be prepared by the Texas Real Estate Broker-Lawyer
Committee and adopted by and promulgated by TREC, prepared by a
Texas attorney, or prepared by the principal, unless the licensee is one
of the principals and is not acting as an agent in the transaction.
When negotiating a sale of real property for another person for a fee,
a licensee must, with a few expectations, use forms promulgated by
the Commission for that kind of transaction. - Answer -True
Numbered photocopies of forms obtained from the Commission are
acceptable sources for reproduced copies of standard forms. - Answer
-True
According to the statute of frauds, a contract of sale of real estate
must be in writing to be enforceable. - Answer -True
A legal procedure or action brought by either the buyer or the seller to
enforce the terms of contract is known as estoppel. - Answer -It is
known as a suit for specific performance.
Computer-driven printed copies, following mandatory guidelines, are
an acceptable source of TREC-promulgated forms. - Answer -True
The broker's name may be inserted in any blank provided for that
purpose. - Answer -True
The broker’s logo may appear in any place on the contract form
deemed appropriate by the broker. - Answer -The broker's logo may
appear at the top of a form and outside of the border of the contract
form.
A buyer is concerned about being contractually bound to buy a
property before selling his own property. His broker should write, in
the Special Provisions paragraph of the contract, a provision which
allows the buyer to terminate if his property is NOT sold first. -
Answer -The licensee assisting the parties to the contract should use
the Addendum for Sale of Other Property By Buyer form promulgated
by TREC for that purpose. To do as the question suggest would
constitute the unauthorized practice of law violate TRELA.
pg. 3
, Alternatively, either principal to the agreement may direct his attorney
to draw up a contingency on the sale of the buyer's property to protect
his client in that situation.
Rental income form separate property is community property. -
Answer -True
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. 4
