Texas State Exam (Prep Agent)
Questions and Answers
A broker sponsors only one associate license holder. He has a listing and a buyer client
who wants to purchase that listing. What is true? - Answer- The broker can act as
intermediary with written consent from both parties.
What is the criminal penalty for engaging in the real estate brokerage business in Texas
without first becoming licensed by TREC? - Answer- A Class A misdemeanor
punishable by confinement of up to one year in a county jail and a fine of up to $4,000
Which of the following statements is true of a security deposit? - Answer- A security
deposit must be returned to the tenant within 30 days of the end of the lease unless the
property has been damaged.
A seller of a property will continue to occupy the premise for 14 days after the closing
day. How should this be handled in the sales contract? - Answer- The Seller's
Temporary Residential Lease form should be used
How long does a broker have to deposit earnest money in an escrow account? -
Answer- Until the close of business of the second working day after the date the broker
receives the trust money (unless otherwise agreed upon).
Which of the following people would not be in jeopardy of losing their Texas real estate
sales agent's license? - Answer- A sales agent who is authorized by their broker to
accept an excessive commission from a seller
Prior to issuance of an inspector's license, a newly approved inspector must remit what
amount to the Real Estate Inspection Recovery Fund? - Answer- $10
Which broker has the right to determine how a commission will be divided? - Answer-
Only the listing broker.
Arthur sold his waterfront property to some buyers and provided the Notice of Coastal
Area Property. The house on the property was behind the vegetation line at the time of
the sale. Several months after the sale, a hurricane caused a considerable amount of
beach erosion and the structure is now seaward of the vegetation line. What is true? -
Answer- The state can force the removal of the structure
Mortgage "discount" points only apply if which of the following conditions are met? -
Answer- The interest rate has been truly reduced for each point charged.
, In a statutory tax district, who is responsible for providing the notices for property
located in that district? - Answer- The seller is responsible for providing the appropriate
notices
Two brothers, Joe and Stephen Bukov, want to buy a townhouse together in Texarkana.
Both men are recent college grads with professional-level jobs. Their lender has
suggested a mortgage that offers lower monthly payments in the beginning that
gradually increase at predetermined times over the life of the loan. Given that they
expect their incomes to increase annually, they feel this type of loan might be a good
choice because they'll be able to afford a larger townhouse. What type of loan does this
describe? - Answer- a graduated payment mortgage loan
Which of the following about the Texas Real Estate Commission is not true? - Answer-
Six Texas Real Estate Commission members are public and three Texas Real Estate
Commission members are brokers.
When a sponsoring broker is unaware that a sales agent is violating the Texas real
estate code through activities such as blockbusting, discrimination, and commingling
funds, which of the following is true of the sponsoring broker's responsibility? - Answer-
If the sponsoring broker is deemed to be completely unaware of the sales agent's illegal
activities, the broker will be absolved of responsibility
Patty rents a storefront in downtown Arlington for her day spa, Boundless Beauty. She
pays $1,500 a month in rent, plus a portion of the landlord's taxes, maintenance, and
insurance (which fluctuate). What type of lease does Patty have? - Answer- a net lease
*Patty has a triple net lease because she pays a portion of all three of the landlord's
usual operating costs (taxes, maintenance, and insurance) on a regular basis -- in
addition to her monthly rent. A net lease is one that requires a tenant to contribute to
some of the landlord's operating costs. Both types of leases are favorable for the
landlord because they allow rising costs to be passed along to tenants. Net leases can
include caps on costs. A gross lease, in contrast, is most similar to the typical residential
lease that stipulates a fixed monthly rent regardless of the landlord's fluctuating
operating costs. A gross lease with stops is a lease that allows a landlord to pass along
some operating costs when they reach a certain level.*
A broker sponsors only one associate license holder. He has a listing and a buyer client
who wants to purchase that listing. What is true? - Answer- He can do intermediary
without appointments
A Texas licensee has defaulted on his Texas State Student loans. As a result of this
Texas Real Estate Commission will: - Answer- do nothing.
Can a broker rebate a portion of the commission to a buyer at closing? - Answer- Yes,
with the permission and agreement of the client
Questions and Answers
A broker sponsors only one associate license holder. He has a listing and a buyer client
who wants to purchase that listing. What is true? - Answer- The broker can act as
intermediary with written consent from both parties.
What is the criminal penalty for engaging in the real estate brokerage business in Texas
without first becoming licensed by TREC? - Answer- A Class A misdemeanor
punishable by confinement of up to one year in a county jail and a fine of up to $4,000
Which of the following statements is true of a security deposit? - Answer- A security
deposit must be returned to the tenant within 30 days of the end of the lease unless the
property has been damaged.
A seller of a property will continue to occupy the premise for 14 days after the closing
day. How should this be handled in the sales contract? - Answer- The Seller's
Temporary Residential Lease form should be used
How long does a broker have to deposit earnest money in an escrow account? -
Answer- Until the close of business of the second working day after the date the broker
receives the trust money (unless otherwise agreed upon).
Which of the following people would not be in jeopardy of losing their Texas real estate
sales agent's license? - Answer- A sales agent who is authorized by their broker to
accept an excessive commission from a seller
Prior to issuance of an inspector's license, a newly approved inspector must remit what
amount to the Real Estate Inspection Recovery Fund? - Answer- $10
Which broker has the right to determine how a commission will be divided? - Answer-
Only the listing broker.
Arthur sold his waterfront property to some buyers and provided the Notice of Coastal
Area Property. The house on the property was behind the vegetation line at the time of
the sale. Several months after the sale, a hurricane caused a considerable amount of
beach erosion and the structure is now seaward of the vegetation line. What is true? -
Answer- The state can force the removal of the structure
Mortgage "discount" points only apply if which of the following conditions are met? -
Answer- The interest rate has been truly reduced for each point charged.
, In a statutory tax district, who is responsible for providing the notices for property
located in that district? - Answer- The seller is responsible for providing the appropriate
notices
Two brothers, Joe and Stephen Bukov, want to buy a townhouse together in Texarkana.
Both men are recent college grads with professional-level jobs. Their lender has
suggested a mortgage that offers lower monthly payments in the beginning that
gradually increase at predetermined times over the life of the loan. Given that they
expect their incomes to increase annually, they feel this type of loan might be a good
choice because they'll be able to afford a larger townhouse. What type of loan does this
describe? - Answer- a graduated payment mortgage loan
Which of the following about the Texas Real Estate Commission is not true? - Answer-
Six Texas Real Estate Commission members are public and three Texas Real Estate
Commission members are brokers.
When a sponsoring broker is unaware that a sales agent is violating the Texas real
estate code through activities such as blockbusting, discrimination, and commingling
funds, which of the following is true of the sponsoring broker's responsibility? - Answer-
If the sponsoring broker is deemed to be completely unaware of the sales agent's illegal
activities, the broker will be absolved of responsibility
Patty rents a storefront in downtown Arlington for her day spa, Boundless Beauty. She
pays $1,500 a month in rent, plus a portion of the landlord's taxes, maintenance, and
insurance (which fluctuate). What type of lease does Patty have? - Answer- a net lease
*Patty has a triple net lease because she pays a portion of all three of the landlord's
usual operating costs (taxes, maintenance, and insurance) on a regular basis -- in
addition to her monthly rent. A net lease is one that requires a tenant to contribute to
some of the landlord's operating costs. Both types of leases are favorable for the
landlord because they allow rising costs to be passed along to tenants. Net leases can
include caps on costs. A gross lease, in contrast, is most similar to the typical residential
lease that stipulates a fixed monthly rent regardless of the landlord's fluctuating
operating costs. A gross lease with stops is a lease that allows a landlord to pass along
some operating costs when they reach a certain level.*
A broker sponsors only one associate license holder. He has a listing and a buyer client
who wants to purchase that listing. What is true? - Answer- He can do intermediary
without appointments
A Texas licensee has defaulted on his Texas State Student loans. As a result of this
Texas Real Estate Commission will: - Answer- do nothing.
Can a broker rebate a portion of the commission to a buyer at closing? - Answer- Yes,
with the permission and agreement of the client
