TEXAS REAL ESTATE EXAM – PRACTICE QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES 2026 Q&A | INSTANT DOWNLOAD PDF.
Core Domains
- Real Estate Principles and Practices
- Texas State Laws and TREC Regulations
- Law of Agency and Fiduciary Duties
- Contracts and Promissory Notes
- Ownership and Land Use Controls
- Finance and Settlement Procedures
- Professional Ethics and Deceptive Trade Practices
- Property Management and Leasing
- Valuation and Market Analysis
Introduction
This practice assessment is designed to provide a comprehensive evaluation of the
essential competencies required for licensure in the Texas real estate industry. The exam
focuses on a rigorous assessment of both national real estate principles and specific state
statutes governed by the Texas Real Estate Commission. Through a combination of
foundational multiple-choice questions and complex scenario-based problems,
candidates must demonstrate a high level of proficiency in legal compliance, ethical
conduct, and financial calculations. The structure emphasizes real-world application,
requiring test-takers to exercise critical thinking and sound professional judgment to
navigate the intricacies of property transactions and consumer protection.
, 1. Which of the following entities is responsible for protecting consumers by
ensuring that real estate service providers are honest, trustworthy, and
competent?
A. Texas Association of Realtors
B. Texas Real Estate Commission
C. Secretary of State
D. Attorney General's Office
🟢 B. Texas Real Estate Commission
🔴 RATIONALE: The Texas Real Estate Commission (TREC) is the state agency that
administers The Real Estate License Act (TRELA) and regulates real estate professionals
to protect the public.
2. A licensee is representing a seller and receives an offer. While the offer is
pending, a second, better offer arrives. What should the licensee do?
A. Wait for the first offer to be rejected before presenting the second.
B. Reject the first offer immediately on behalf of the seller.
C. Present both offers to the seller as quickly as possible.
D. Tell the second buyer that the property is already under contract.
🟢 C. Present both offers to the seller as quickly as possible.
🔴 RATIONALE: Under Texas Law of Agency, a licensee must present all offers to the
client unless otherwise instructed in writing by the seller.
3. Which type of ownership is characterized by the "right of survivorship"?
,A. Tenancy in common
B. Joint tenancy
C. Estate in severalty
D. Determinable fee
🟢 B. Joint tenancy
🔴 RATIONALE: Joint tenancy includes the right of survivorship, meaning that upon
the death of one owner, their interest passes automatically to the surviving joint
tenants.
4. A property owner fails to pay their property taxes. Which of the following is true
regarding a tax lien in Texas?
A. It is a junior lien.
B. It is a voluntary lien.
C. It takes priority over all other liens.
D. It only attaches to personal property.
🟢 C. It takes priority over all other liens.
🔴 RATIONALE: Statutory tax liens for real property taxes take priority over all other
liens, regardless of when those other liens were recorded.
5. What is the maximum fine TREC can impose for an administrative penalty per
violation?
A. $1,000
B. $2,500
, C. $5,000
D. $10,000
🟢 C. $5,000
🔴 RATIONALE: TREC may assess an administrative penalty in an amount not to
exceed $5,000 for each day a violation continues.
6. Under the Deceptive Trade Practices Act (DTPA), how much time does a
consumer have to file a suit from the date the violation occurred?
A. 1 year
B. 2 years
C. 4 years
D. 7 years
🟢 B. 2 years
🔴 RATIONALE: The statute of limitations for filing a DTPA suit is two years from the
date the deceptive act occurred or was discovered.
7. Which of the following is an example of a "fixture" in a residential property?
A. A freestanding microwave
B. Custom-fitted window blinds
C. A decorative area rug
D. Potted plants on a patio
🟢 B. Custom-fitted window blinds
(VERIFIED ANSWERS) PLUS RATIONALES 2026 Q&A | INSTANT DOWNLOAD PDF.
Core Domains
- Real Estate Principles and Practices
- Texas State Laws and TREC Regulations
- Law of Agency and Fiduciary Duties
- Contracts and Promissory Notes
- Ownership and Land Use Controls
- Finance and Settlement Procedures
- Professional Ethics and Deceptive Trade Practices
- Property Management and Leasing
- Valuation and Market Analysis
Introduction
This practice assessment is designed to provide a comprehensive evaluation of the
essential competencies required for licensure in the Texas real estate industry. The exam
focuses on a rigorous assessment of both national real estate principles and specific state
statutes governed by the Texas Real Estate Commission. Through a combination of
foundational multiple-choice questions and complex scenario-based problems,
candidates must demonstrate a high level of proficiency in legal compliance, ethical
conduct, and financial calculations. The structure emphasizes real-world application,
requiring test-takers to exercise critical thinking and sound professional judgment to
navigate the intricacies of property transactions and consumer protection.
, 1. Which of the following entities is responsible for protecting consumers by
ensuring that real estate service providers are honest, trustworthy, and
competent?
A. Texas Association of Realtors
B. Texas Real Estate Commission
C. Secretary of State
D. Attorney General's Office
🟢 B. Texas Real Estate Commission
🔴 RATIONALE: The Texas Real Estate Commission (TREC) is the state agency that
administers The Real Estate License Act (TRELA) and regulates real estate professionals
to protect the public.
2. A licensee is representing a seller and receives an offer. While the offer is
pending, a second, better offer arrives. What should the licensee do?
A. Wait for the first offer to be rejected before presenting the second.
B. Reject the first offer immediately on behalf of the seller.
C. Present both offers to the seller as quickly as possible.
D. Tell the second buyer that the property is already under contract.
🟢 C. Present both offers to the seller as quickly as possible.
🔴 RATIONALE: Under Texas Law of Agency, a licensee must present all offers to the
client unless otherwise instructed in writing by the seller.
3. Which type of ownership is characterized by the "right of survivorship"?
,A. Tenancy in common
B. Joint tenancy
C. Estate in severalty
D. Determinable fee
🟢 B. Joint tenancy
🔴 RATIONALE: Joint tenancy includes the right of survivorship, meaning that upon
the death of one owner, their interest passes automatically to the surviving joint
tenants.
4. A property owner fails to pay their property taxes. Which of the following is true
regarding a tax lien in Texas?
A. It is a junior lien.
B. It is a voluntary lien.
C. It takes priority over all other liens.
D. It only attaches to personal property.
🟢 C. It takes priority over all other liens.
🔴 RATIONALE: Statutory tax liens for real property taxes take priority over all other
liens, regardless of when those other liens were recorded.
5. What is the maximum fine TREC can impose for an administrative penalty per
violation?
A. $1,000
B. $2,500
, C. $5,000
D. $10,000
🟢 C. $5,000
🔴 RATIONALE: TREC may assess an administrative penalty in an amount not to
exceed $5,000 for each day a violation continues.
6. Under the Deceptive Trade Practices Act (DTPA), how much time does a
consumer have to file a suit from the date the violation occurred?
A. 1 year
B. 2 years
C. 4 years
D. 7 years
🟢 B. 2 years
🔴 RATIONALE: The statute of limitations for filing a DTPA suit is two years from the
date the deceptive act occurred or was discovered.
7. Which of the following is an example of a "fixture" in a residential property?
A. A freestanding microwave
B. Custom-fitted window blinds
C. A decorative area rug
D. Potted plants on a patio
🟢 B. Custom-fitted window blinds
