2026 Questions and Correct Detailed Answers
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The written disclosure of agency relationships is not required if the: - CORRECT
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.
B. by estoppel.
C. by apparent authority
D. by assumed authority - CORRECT ANSWER-D. An agency relationship may
be created in all of these ways except for by assumed authority.
Dave defaulted on his mortgage loan and the property was ordered to be sold at a
foreclosure sale. Dave may redeem his property: - CORRECT ANSWER-A
property owner in default may redeem his or her property up until the property is
sold, under the equitable right of redemption.
,What should a real estate broker do with licenses coming into his or her
possession? - CORRECT ANSWER-prominently display them in his or her place
of business
Who is responsible for any wrongs done by a salesperson while acting within the
scope of the agency agreement? - CORRECT 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? -
CORRECT 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: - CORRECT 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? - CORRECT 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? - CORRECT 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: - CORRECT
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? -
CORRECT 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: - CORRECT ANSWER-a violation of the TRELA.
, What is the composition of the Broker-Lawyer Committee? - CORRECT
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: - CORRECT ANSWER-may be done orally or in writing.
A broker may do which of the following for an individual without actually
representing the individual? - CORRECT 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: -
CORRECT 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.