TEXAS REAL ESTATE ACTUAL EXAM
2024 QUESTIONS AND CORRECT
ANSWERS
As a rule, rebates, commissions and service provider fees in
real estate transactions must be transparent. In that context
which of the following scenarios is in compliance with license
law? Correct Answer A licensee discloses and obtains consent
from her seller-client to receive a fee from a property inspector.
Which of the following best defines an agent per Texas statute
(1101.557)? Correct Answer A broker who represents a party in
a real estate transaction or who lists real estate under an
exclusive agreement.
Three of the following answers accurately characterize the
duties of an intermediary. Which one does not? Correct Answer
Must treat parties honestly, fairly, and impartially.
** May not disclose confidential information regardless of
circumstances.
May not negotiate a lower or higher price without authorization.
You Answered Must disclose information materially impacting
property condition.
What is the primary function of an appointed intermediary.
Correct Answer To carry out specific instructions from the
intermediary for the benefit of the principal party.
Brokers are required to maintain office policies and procedures
to ensure that, among other things, sponsored sales agent
keep current on law changes and their continuing education
requirements. Which of the following is NOT a goal served by
policy and procedure manuals? Correct Answer Optimized web
presence for marketing listings.
,Which of the following is true regarding referrals? Correct
Answer The referring party must be licensed if expecting
compensation for the referral.
A buyer has limited cash resources, but the seller agrees to
execute a purchase money mortgage for $10,000. Correct
Answer Seller financing addendum
A rancher needs to convey his family's property to a buyer.
Correct Answer Farm and Ranch Contract
A form to advise buyers to have the subject property's title
examined by an attorney. Correct Answer Notice to Prospective
buyer
A developer wants to purchase a large tract of land. Correct
Answer Unimproved property contract.
Which of the following is a violation of license laws as they
relate to contracts? Correct Answer Entering language onto a
contract clause blank that defines what a tenant can or cannot
do if the landlord does not make a timely security improvement.
235.3227526.83
Which of the following is true regarding mechanics liens in
Texas? Correct Answer There is a specific 75-day time limit for
recording the lien.
Which of the following is NOT an accurate characteristic of
homestead laws? Correct Answer Homestead rights require a
one-time filing with the county clerk.
Utility service to tenants is regulated by Property Code 92. One
of these regulations is that Correct Answer the landlord may not
cause utility service to be interrupted to the tenant as a means
to collect unpaid rent
, Which of the following is NOT a landlord justification for
keeping a tenant's security deposit? Correct Answer To
eliminate "normal wear and tear" to the apartment, including
painting and carpet cleaning
In maintaining proper relations with tenants, landlords and
tenants are obligated to meet certain apartment security
standards. Which of the following accurately identifies one such
standard? Correct Answer The landlord must re-key the locks
within seven days following a tenant's vacating.
Texas Property Code Chapter 92 is very specific about fire
safety regulations. According to code, Correct Answer there
must be a smoke alarm in every bedroom of a dwelling unit.
Texas is a community property state. Effectively, this means
that Correct Answer spouses, with some exceptions, share
property acquired during the marriage, but not what each
owned beforehand.
Which of the following is a true statement regarding equitable
interest? Correct Answer Texas mortgagors hold equitable title
in the collateralized property.
In a short sale, the sale price is less than the mortgage amount.
Which of the following is a critical issue for the seller in
completing a short sale? Correct Answer Getting the lender to
provide a full release of the lien at closing
According to Texas Property Code, recording real property
conveyances has which of the following legal effects? Correct
Answer It prevents a transaction from being void with respect to
creditors and subsequent buyers.
When tenants default, the landlord may evict by following the
correct procedures. Which of the following actions would be
considered proper eviction procedure? Correct Answer Armed
2024 QUESTIONS AND CORRECT
ANSWERS
As a rule, rebates, commissions and service provider fees in
real estate transactions must be transparent. In that context
which of the following scenarios is in compliance with license
law? Correct Answer A licensee discloses and obtains consent
from her seller-client to receive a fee from a property inspector.
Which of the following best defines an agent per Texas statute
(1101.557)? Correct Answer A broker who represents a party in
a real estate transaction or who lists real estate under an
exclusive agreement.
Three of the following answers accurately characterize the
duties of an intermediary. Which one does not? Correct Answer
Must treat parties honestly, fairly, and impartially.
** May not disclose confidential information regardless of
circumstances.
May not negotiate a lower or higher price without authorization.
You Answered Must disclose information materially impacting
property condition.
What is the primary function of an appointed intermediary.
Correct Answer To carry out specific instructions from the
intermediary for the benefit of the principal party.
Brokers are required to maintain office policies and procedures
to ensure that, among other things, sponsored sales agent
keep current on law changes and their continuing education
requirements. Which of the following is NOT a goal served by
policy and procedure manuals? Correct Answer Optimized web
presence for marketing listings.
,Which of the following is true regarding referrals? Correct
Answer The referring party must be licensed if expecting
compensation for the referral.
A buyer has limited cash resources, but the seller agrees to
execute a purchase money mortgage for $10,000. Correct
Answer Seller financing addendum
A rancher needs to convey his family's property to a buyer.
Correct Answer Farm and Ranch Contract
A form to advise buyers to have the subject property's title
examined by an attorney. Correct Answer Notice to Prospective
buyer
A developer wants to purchase a large tract of land. Correct
Answer Unimproved property contract.
Which of the following is a violation of license laws as they
relate to contracts? Correct Answer Entering language onto a
contract clause blank that defines what a tenant can or cannot
do if the landlord does not make a timely security improvement.
235.3227526.83
Which of the following is true regarding mechanics liens in
Texas? Correct Answer There is a specific 75-day time limit for
recording the lien.
Which of the following is NOT an accurate characteristic of
homestead laws? Correct Answer Homestead rights require a
one-time filing with the county clerk.
Utility service to tenants is regulated by Property Code 92. One
of these regulations is that Correct Answer the landlord may not
cause utility service to be interrupted to the tenant as a means
to collect unpaid rent
, Which of the following is NOT a landlord justification for
keeping a tenant's security deposit? Correct Answer To
eliminate "normal wear and tear" to the apartment, including
painting and carpet cleaning
In maintaining proper relations with tenants, landlords and
tenants are obligated to meet certain apartment security
standards. Which of the following accurately identifies one such
standard? Correct Answer The landlord must re-key the locks
within seven days following a tenant's vacating.
Texas Property Code Chapter 92 is very specific about fire
safety regulations. According to code, Correct Answer there
must be a smoke alarm in every bedroom of a dwelling unit.
Texas is a community property state. Effectively, this means
that Correct Answer spouses, with some exceptions, share
property acquired during the marriage, but not what each
owned beforehand.
Which of the following is a true statement regarding equitable
interest? Correct Answer Texas mortgagors hold equitable title
in the collateralized property.
In a short sale, the sale price is less than the mortgage amount.
Which of the following is a critical issue for the seller in
completing a short sale? Correct Answer Getting the lender to
provide a full release of the lien at closing
According to Texas Property Code, recording real property
conveyances has which of the following legal effects? Correct
Answer It prevents a transaction from being void with respect to
creditors and subsequent buyers.
When tenants default, the landlord may evict by following the
correct procedures. Which of the following actions would be
considered proper eviction procedure? Correct Answer Armed
