TEXAS STATE PORTION REAL
ESTATE EXAM 2026-2027
QUESTIONS AND ANSWERS 100%
CORRECT
Who is responsible for any wrongs done by a salesperson while acting within the
scope of the agency agreement? - ANSWER-The broker is liable for the wrongdoing
of his or her salespersons. The principal is liable for any wrongs committed by the
broker while acting within the scope of the agency agreement.
what is the distinction between sales contracts and option contracts? - ANSWER-
One characteristic of sales contracts is mutual obligation. Option contracts lack
mutual obligation. The buyer in an option contract is not obligated to buy.
A listing agreement must contain: - ANSWER-a standard street address is sufficient.
If the commission investigates a complaint and determines that an individual's real
estate license should be suspended or revoked, the licensee is entitled to a hearing
before the commission within how many days after the commission reaches its
decision? - ANSWER-A licensee who faces suspension or revocation of their license
is entitled to a hearing within 30 days of the commission reaching their decision.
Which of the licensed entities does not fall under the regulatory authority of the
Texas Real Estate Commission? - ANSWER-The Texas Appraiser Licensing and
Certification Board has jurisdiction over state licensed and certified appraisers. In
addition to licensing brokers and salespersons, the Texas Real Estate Commission
is responsible for licensing real estate inspectors and for regulation of companies
that sell and issue residential service contracts ("home warranties"). (Article 65736,
Vernon's Texas Civil Statutes.
A licensee in Texas may not practice law, unless licensed and authorized to do so in
Texas. Practicing law includes altering contracts, or drawing up: - ANSWER-a deed,
deed of trust, will, or other written instrument that may transfer or affect the title to
land.
What penalties may a licensee who breaches the agency relationship face? -
ANSWER-A licensee who breaches the agency relationship may be sued for
damages, termination of the contract, and/or non-payment of the commission.
Undisclosed dual agency is: - ANSWER-a violation of the TRELA.
What is a counteroffer? - ANSWER-A rejection of an offer and a presentation of new
terms and/or conditions. It is not valid until both parties have signed it.
,Parties can be compelled to take a dispute to mediation prior to being able to initiate
litigation by - ANSWER-A judge. Under the 1987 Alternative Dispute Resolution Act,
only a judge can compel parties to take a dispute to mediation. Others can
encourage parties to submit voluntarily to mediation prior to resorting to litigation but
only a judge can compel.
What is true of a mechanic's and materialman's (M&M) lien? - ANSWER-
Homesteads are not protected against M&M liens, the lien is valid as of the first day
work began on the property, and all owners of the property must sign before work is
begun.
A broker has a duty to provide what two things to his sponsoring agents? -
ANSWER-Supervision and evaluation
Once a licensee has obtained a listing, he or she must: - ANSWER-provide the seller
with a legible, signed, true, and correct copy of the listing agreement.
Six of the members of the Broker-Lawyer Committee are selected from: - ANSWER-
The State Bar of Texas.
What is the composition of the Broker-Lawyer Committee? - ANSWER-Six broker
members are appointed by the Texas Real Estate Commission; six attorney
members are appointed by the President of the State Bar of Texas. The appointees
serve a term of six years with one-third of them being appointed every two years.
A licensee must disclose any existing agency relationships to a new client. This
disclosure: - ANSWER-may be done orally or in writing.
A broker may do which of the following for an individual without actually representing
the individual? - ANSWER-A broker may obtain financing, assist in locating a
property, and prepare a contract or lease for an individual without representing the
individual.
A real estate licensee must notify the real estate program manager if: - ANSWER-A
licensee must notify the real estate program manager within 20 days of receiving any
criminal complaint, information, indictment, or conviction in which the licensee is
named as a defendant; or entry of a civil court order, verdict, or judgment, against
the licensee in any court of competent jurisdiction in which the subject matter therein
involves any real estate or business-related activity by the licensee.
Pamela, who lives in a suburb in which many homes are rented, decides to open a
rental agency in order to assist her friends in finding suitable renters. Pamela's
conduct is - ANSWER-unacceptable because it involves an activity for which a real
estate license is required.
The sole broker of a brokerage firm has his or her real estate license suspended for
two years. What would happen to the licenses of the salespersons affiliated with this
broker? - ANSWER-If the broker's license is suspended or revoked, the
salespersons' licenses are made inactive and must be returned to the commission. A
, salesperson's license may be made active when the salesperson is sponsored by a
new broker.
Which agency is responsible for the contract forms used by Texas licensees? -
ANSWER-The Texas Real Estate Commission
A community property with rights of survivorship agreement must: - ANSWER-
doesn't need to go through probate, must be signed by both spouses, must include
the property description, be in writing, contain wording that makes evident the intent
of survivorship, and be recorded in the county courthouse.
Generally, the most important responsibility of an agent is to: - ANSWER-represent
the financial interests of the client.
Broker Bea recently entered into a listing contract with Seller Sally. Broker Bea just
learned that Sally is actually 17 years old and not married. The listing contract is: -
ANSWER-voidable at the option of the minor.
Which of the following people would need to obtain a real estate license if they were
involved in a real estate activity?
A. the executor of an estate
B. a court-appointed guardian
C. a trustee of the bankruptcy court
D. one who sells lots in a mobile home park - ANSWER-D. The sale of land/lots is an
act of brokerage and requires that one have a license if he or she is not the owner of
the lot. The other three answers are listed as people who do not need a license in
Section 3 of the Texas Real Estate License Act.
An agency relationship may be terminated by - ANSWER-expiration of time,
agreement, rescission, abandonment, or by the death of either party.
A property owner may claim a homeowner's exemption in Texas on a residence that
is both owned and occupied. The exemption reduces the assessed value of the
residence by - ANSWER-$7,000 dollars
A broker must maintain a place of business in the state of Texas. If the location
changes, the broker has how long to notify the commission? - ANSWER-The broker
must notify the commission of any change of address within 10 days.
What happens when an applicant for licensure has failed to pass the competency
examination within the prescribed six-month period? - ANSWER-The applicant must
submit a new application meeting all current requirements.
The written disclosure of agency relationships is not required if the: - ANSWER-
proposed transaction is for a residential lease for not more than one year and no
sale is being considered. Disclosure is also not required if the licensee meets with a
party who is represented by another licensee.
An agency relationship may be created in all of the following ways except:
A. by ratification.
ESTATE EXAM 2026-2027
QUESTIONS AND ANSWERS 100%
CORRECT
Who is responsible for any wrongs done by a salesperson while acting within the
scope of the agency agreement? - ANSWER-The broker is liable for the wrongdoing
of his or her salespersons. The principal is liable for any wrongs committed by the
broker while acting within the scope of the agency agreement.
what is the distinction between sales contracts and option contracts? - ANSWER-
One characteristic of sales contracts is mutual obligation. Option contracts lack
mutual obligation. The buyer in an option contract is not obligated to buy.
A listing agreement must contain: - ANSWER-a standard street address is sufficient.
If the commission investigates a complaint and determines that an individual's real
estate license should be suspended or revoked, the licensee is entitled to a hearing
before the commission within how many days after the commission reaches its
decision? - ANSWER-A licensee who faces suspension or revocation of their license
is entitled to a hearing within 30 days of the commission reaching their decision.
Which of the licensed entities does not fall under the regulatory authority of the
Texas Real Estate Commission? - ANSWER-The Texas Appraiser Licensing and
Certification Board has jurisdiction over state licensed and certified appraisers. In
addition to licensing brokers and salespersons, the Texas Real Estate Commission
is responsible for licensing real estate inspectors and for regulation of companies
that sell and issue residential service contracts ("home warranties"). (Article 65736,
Vernon's Texas Civil Statutes.
A licensee in Texas may not practice law, unless licensed and authorized to do so in
Texas. Practicing law includes altering contracts, or drawing up: - ANSWER-a deed,
deed of trust, will, or other written instrument that may transfer or affect the title to
land.
What penalties may a licensee who breaches the agency relationship face? -
ANSWER-A licensee who breaches the agency relationship may be sued for
damages, termination of the contract, and/or non-payment of the commission.
Undisclosed dual agency is: - ANSWER-a violation of the TRELA.
What is a counteroffer? - ANSWER-A rejection of an offer and a presentation of new
terms and/or conditions. It is not valid until both parties have signed it.
,Parties can be compelled to take a dispute to mediation prior to being able to initiate
litigation by - ANSWER-A judge. Under the 1987 Alternative Dispute Resolution Act,
only a judge can compel parties to take a dispute to mediation. Others can
encourage parties to submit voluntarily to mediation prior to resorting to litigation but
only a judge can compel.
What is true of a mechanic's and materialman's (M&M) lien? - ANSWER-
Homesteads are not protected against M&M liens, the lien is valid as of the first day
work began on the property, and all owners of the property must sign before work is
begun.
A broker has a duty to provide what two things to his sponsoring agents? -
ANSWER-Supervision and evaluation
Once a licensee has obtained a listing, he or she must: - ANSWER-provide the seller
with a legible, signed, true, and correct copy of the listing agreement.
Six of the members of the Broker-Lawyer Committee are selected from: - ANSWER-
The State Bar of Texas.
What is the composition of the Broker-Lawyer Committee? - ANSWER-Six broker
members are appointed by the Texas Real Estate Commission; six attorney
members are appointed by the President of the State Bar of Texas. The appointees
serve a term of six years with one-third of them being appointed every two years.
A licensee must disclose any existing agency relationships to a new client. This
disclosure: - ANSWER-may be done orally or in writing.
A broker may do which of the following for an individual without actually representing
the individual? - ANSWER-A broker may obtain financing, assist in locating a
property, and prepare a contract or lease for an individual without representing the
individual.
A real estate licensee must notify the real estate program manager if: - ANSWER-A
licensee must notify the real estate program manager within 20 days of receiving any
criminal complaint, information, indictment, or conviction in which the licensee is
named as a defendant; or entry of a civil court order, verdict, or judgment, against
the licensee in any court of competent jurisdiction in which the subject matter therein
involves any real estate or business-related activity by the licensee.
Pamela, who lives in a suburb in which many homes are rented, decides to open a
rental agency in order to assist her friends in finding suitable renters. Pamela's
conduct is - ANSWER-unacceptable because it involves an activity for which a real
estate license is required.
The sole broker of a brokerage firm has his or her real estate license suspended for
two years. What would happen to the licenses of the salespersons affiliated with this
broker? - ANSWER-If the broker's license is suspended or revoked, the
salespersons' licenses are made inactive and must be returned to the commission. A
, salesperson's license may be made active when the salesperson is sponsored by a
new broker.
Which agency is responsible for the contract forms used by Texas licensees? -
ANSWER-The Texas Real Estate Commission
A community property with rights of survivorship agreement must: - ANSWER-
doesn't need to go through probate, must be signed by both spouses, must include
the property description, be in writing, contain wording that makes evident the intent
of survivorship, and be recorded in the county courthouse.
Generally, the most important responsibility of an agent is to: - ANSWER-represent
the financial interests of the client.
Broker Bea recently entered into a listing contract with Seller Sally. Broker Bea just
learned that Sally is actually 17 years old and not married. The listing contract is: -
ANSWER-voidable at the option of the minor.
Which of the following people would need to obtain a real estate license if they were
involved in a real estate activity?
A. the executor of an estate
B. a court-appointed guardian
C. a trustee of the bankruptcy court
D. one who sells lots in a mobile home park - ANSWER-D. The sale of land/lots is an
act of brokerage and requires that one have a license if he or she is not the owner of
the lot. The other three answers are listed as people who do not need a license in
Section 3 of the Texas Real Estate License Act.
An agency relationship may be terminated by - ANSWER-expiration of time,
agreement, rescission, abandonment, or by the death of either party.
A property owner may claim a homeowner's exemption in Texas on a residence that
is both owned and occupied. The exemption reduces the assessed value of the
residence by - ANSWER-$7,000 dollars
A broker must maintain a place of business in the state of Texas. If the location
changes, the broker has how long to notify the commission? - ANSWER-The broker
must notify the commission of any change of address within 10 days.
What happens when an applicant for licensure has failed to pass the competency
examination within the prescribed six-month period? - ANSWER-The applicant must
submit a new application meeting all current requirements.
The written disclosure of agency relationships is not required if the: - ANSWER-
proposed transaction is for a residential lease for not more than one year and no
sale is being considered. Disclosure is also not required if the licensee meets with a
party who is represented by another licensee.
An agency relationship may be created in all of the following ways except:
A. by ratification.
