Texas Real Estate Property Management Final
Exam 2026 – Test Questions with Elaborated
Verified Answers
Texas Real Estate Property Management Final Exam 2026
Test Questions with Elaborated Verified Answers
Question 1: What is the primary role of a property manager in Texas?
A. To purchase properties on behalf of investors
B. To act as the owner's agent in managing real estate assets
C. To serve as a government inspector for rental units
D. To provide legal representation in real estate disputes
E. To finance the purchase of investment properties
CORRECT ANSWER: B. To act as the owner's agent in managing real estate
assets
RATIONALE: A property manager in Texas acts as the owner's agent, handling day-
to-day operations of real estate including leasing, maintenance, tenant relations, and
financial management on behalf of the property owner.
Question 2: Under Texas law, a property manager who collects rent and negotiates
leases must hold which of the following?
A. A certified public accountant license
B. A general contractor's license
C. A Texas Real Estate Broker or Salesperson license
D. A mortgage loan originator license
E. A notary public certification
CORRECT ANSWER: C. A Texas Real Estate Broker or Salesperson license
RATIONALE: Texas law requires anyone who negotiates leases, collects rent, or
manages property for others for compensation to hold a valid Texas Real Estate Broker
or Salesperson license issued by TREC.
,Question 3: Which state agency regulates real estate licenses in Texas?
A. Texas Department of Insurance (TDI)
B. Texas Real Estate Commission (TREC)
C. Texas Department of Housing and Community Affairs (TDHCA)
D. Texas State Board of Public Accountancy (TSBPA)
E. Texas Secretary of State Office
CORRECT ANSWER: B. Texas Real Estate Commission (TREC)
RATIONALE: TREC is the state agency responsible for licensing and regulating real
estate professionals in Texas, including property managers, brokers, and salespersons.
Question 4: A property management agreement is best described as:
A. A lease agreement between a tenant and landlord
B. A contract between the property owner and manager outlining duties and
compensation
C. A government mandate requiring all landlords to hire managers
D. An insurance policy for rental properties
E. A deed transferring ownership of the property
CORRECT ANSWER: B. A contract between the property owner and manager
outlining duties and compensation
RATIONALE: A property management agreement is a legally binding contract that
defines the scope of the manager's duties, compensation structure, authority limits, and
the duration of the management relationship.
Question 5: Which of the following is NOT typically included in a property management
agreement?
A. Management fees and compensation structure
B. Scope of the manager's authority
,C. Duration of the management agreement
D. The tenant's credit score history
E. Maintenance and repair responsibilities
CORRECT ANSWER: D. The tenant's credit score history
RATIONALE: A property management agreement is between the owner and the
manager. Tenant credit scores are part of tenant screening records, not part of the
management agreement itself.
Question 6: Under the Texas Property Code, what is the maximum security deposit a
landlord can charge for a residential property?
A. One month's rent
B. Two months' rent
C. Three months' rent
D. There is no statutory maximum in Texas
E. Half a month's rent
CORRECT ANSWER: D. There is no statutory maximum in Texas
RATIONALE: Texas law does not set a maximum limit on security deposits for
residential properties. However, landlords must return the deposit within 30 days after
the tenant vacates, along with an itemized statement of deductions.
Question 7: How many days does a Texas landlord have to return a security deposit
after a tenant vacates?
A. 14 days
B. 21 days
C. 30 days
D. 45 days
E. 60 days
CORRECT ANSWER: C. 30 days
, RATIONALE: Under Texas Property Code Section 92.103, a landlord must return the
security deposit to the tenant no later than 30 days after the tenant surrenders the
premises.
Question 8: If a Texas landlord fails to return the security deposit within the legally
required period, the tenant may sue for:
A. Only the amount of the deposit
B. Three times the amount of the deposit plus attorney's fees
C. Twice the deposit amount
D. The deposit plus one month's rent
E. The deposit plus court costs only
CORRECT ANSWER: B. Three times the amount of the deposit plus attorney's
fees
RATIONALE: Texas Property Code Section 92.109 allows a tenant to sue for three
times the wrongfully withheld deposit amount plus reasonable attorney's fees if the
landlord acts in bad faith in failing to return the deposit.
Question 9: A property manager's fiduciary duty to the owner includes:
A. Prioritizing tenant requests over owner instructions
B. Acting in the owner's best interest with loyalty, confidentiality, and disclosure
C. Maximizing personal commissions regardless of owner preference
D. Sharing the owner's financial details with prospective tenants
E. Making all decisions without consulting the owner
CORRECT ANSWER: B. Acting in the owner's best interest with loyalty,
confidentiality, and disclosure
RATIONALE: Fiduciary duty requires the property manager to act with loyalty,
obedience, full disclosure, confidentiality, and accounting — always placing the owner's
interests above their own.
Exam 2026 – Test Questions with Elaborated
Verified Answers
Texas Real Estate Property Management Final Exam 2026
Test Questions with Elaborated Verified Answers
Question 1: What is the primary role of a property manager in Texas?
A. To purchase properties on behalf of investors
B. To act as the owner's agent in managing real estate assets
C. To serve as a government inspector for rental units
D. To provide legal representation in real estate disputes
E. To finance the purchase of investment properties
CORRECT ANSWER: B. To act as the owner's agent in managing real estate
assets
RATIONALE: A property manager in Texas acts as the owner's agent, handling day-
to-day operations of real estate including leasing, maintenance, tenant relations, and
financial management on behalf of the property owner.
Question 2: Under Texas law, a property manager who collects rent and negotiates
leases must hold which of the following?
A. A certified public accountant license
B. A general contractor's license
C. A Texas Real Estate Broker or Salesperson license
D. A mortgage loan originator license
E. A notary public certification
CORRECT ANSWER: C. A Texas Real Estate Broker or Salesperson license
RATIONALE: Texas law requires anyone who negotiates leases, collects rent, or
manages property for others for compensation to hold a valid Texas Real Estate Broker
or Salesperson license issued by TREC.
,Question 3: Which state agency regulates real estate licenses in Texas?
A. Texas Department of Insurance (TDI)
B. Texas Real Estate Commission (TREC)
C. Texas Department of Housing and Community Affairs (TDHCA)
D. Texas State Board of Public Accountancy (TSBPA)
E. Texas Secretary of State Office
CORRECT ANSWER: B. Texas Real Estate Commission (TREC)
RATIONALE: TREC is the state agency responsible for licensing and regulating real
estate professionals in Texas, including property managers, brokers, and salespersons.
Question 4: A property management agreement is best described as:
A. A lease agreement between a tenant and landlord
B. A contract between the property owner and manager outlining duties and
compensation
C. A government mandate requiring all landlords to hire managers
D. An insurance policy for rental properties
E. A deed transferring ownership of the property
CORRECT ANSWER: B. A contract between the property owner and manager
outlining duties and compensation
RATIONALE: A property management agreement is a legally binding contract that
defines the scope of the manager's duties, compensation structure, authority limits, and
the duration of the management relationship.
Question 5: Which of the following is NOT typically included in a property management
agreement?
A. Management fees and compensation structure
B. Scope of the manager's authority
,C. Duration of the management agreement
D. The tenant's credit score history
E. Maintenance and repair responsibilities
CORRECT ANSWER: D. The tenant's credit score history
RATIONALE: A property management agreement is between the owner and the
manager. Tenant credit scores are part of tenant screening records, not part of the
management agreement itself.
Question 6: Under the Texas Property Code, what is the maximum security deposit a
landlord can charge for a residential property?
A. One month's rent
B. Two months' rent
C. Three months' rent
D. There is no statutory maximum in Texas
E. Half a month's rent
CORRECT ANSWER: D. There is no statutory maximum in Texas
RATIONALE: Texas law does not set a maximum limit on security deposits for
residential properties. However, landlords must return the deposit within 30 days after
the tenant vacates, along with an itemized statement of deductions.
Question 7: How many days does a Texas landlord have to return a security deposit
after a tenant vacates?
A. 14 days
B. 21 days
C. 30 days
D. 45 days
E. 60 days
CORRECT ANSWER: C. 30 days
, RATIONALE: Under Texas Property Code Section 92.103, a landlord must return the
security deposit to the tenant no later than 30 days after the tenant surrenders the
premises.
Question 8: If a Texas landlord fails to return the security deposit within the legally
required period, the tenant may sue for:
A. Only the amount of the deposit
B. Three times the amount of the deposit plus attorney's fees
C. Twice the deposit amount
D. The deposit plus one month's rent
E. The deposit plus court costs only
CORRECT ANSWER: B. Three times the amount of the deposit plus attorney's
fees
RATIONALE: Texas Property Code Section 92.109 allows a tenant to sue for three
times the wrongfully withheld deposit amount plus reasonable attorney's fees if the
landlord acts in bad faith in failing to return the deposit.
Question 9: A property manager's fiduciary duty to the owner includes:
A. Prioritizing tenant requests over owner instructions
B. Acting in the owner's best interest with loyalty, confidentiality, and disclosure
C. Maximizing personal commissions regardless of owner preference
D. Sharing the owner's financial details with prospective tenants
E. Making all decisions without consulting the owner
CORRECT ANSWER: B. Acting in the owner's best interest with loyalty,
confidentiality, and disclosure
RATIONALE: Fiduciary duty requires the property manager to act with loyalty,
obedience, full disclosure, confidentiality, and accounting — always placing the owner's
interests above their own.
