TEXAS PRINCIPLES 1 EXAM LATEST
UPDATED 2025 PRACTICE QUESTIONS
WITH ANSWERS - CHAMPIONS
SCHOOL OF REAL ESTATE/GRADED AT
A+
SURE PASS!!
1.Courses for the renewal of an active real estate broker or sales agent license are
called - ANSWER continuing education (CE)
2. What is the maximum amount that the Commission will pay from the real estate
recovery trust account for claims against any one license holder, until the account
has been repaid in full by the license holder? - ANSWER $100,000
3. Which is owned by the tenant? - ANSWER a trade fixture
4. Which of the following terms refers not only to the surface of the earth but also
below to the center of the earth, above to infinity, and natural things permanently
attached but does NOT refer to artificial things permanently attached? - ANSWER
land
5. If the court learns that the seller placed a sign that said "Not Included" on the
stove every time a buyer looked at the property, the court will consider which of
the following in determining whether the stove is a fixture, absent a written
agreement? - ANSWER Intention of the parties
6. What type of estate is complete ownership and exists for an unlimited time? -
ANSWER fee simple
7. If a condition of ownership is violated, title to the subject property automatically
reverts to the original owner in - ANSWER a determinable fee estate
8. An urban homestead is limited to a lot or lots NOT to exceed how many acres? -
ANSWER 10
,9. The method used to describe real estate by distance, direction, and boundaries is
- ANSWER metes-and-bounds method
10. Which equals one square mile or 640 acres? - ANSWER section
11. Under the federal Fair Housing Act, real estate organizations, such as multiple
listing services, may NOT do which because someone is in a protected group? -
ANSWER refuse membership or put conditions on participation
12. Which aspect of the Canons of Professional Ethics and Conduct requires the
broker or sales agent to be informed on market conditions and national, state, and
local developments affecting the real estate business? - ANSWER competency.
13. A complaint of discrimination brought under the Texas Fair Housing Act can
be filed with the U.S. Department of Housing and Urban Development or with -
ANSWER the Texas Workforce Commission Civil Rights Division
14. An aggrieved person who believes illegal discrimination has occurred may file
a complaint within what time frame following the alleged discriminatory act? -
ANSWER ONE YEAR
15. Appurtenant easement rights transfer with - ANSWER the dominant tenement
16. An owner sells part of his land that has no access to a public road but does have
access over his remaining land. This creates an easement by - ANSWER necessity
17. When there are two or more liens on a property, the order in which the liens
will be satisfied when the property is sold will be determined by - ANSWER the
priority of the liens
18. Which of the following may be a natural object, such as a tree or a boulder, or
an artificial object, such as a steel rod or a stake driven into the ground? -
ANSWER Monument
19. It is unlawful for a person to act in the capacity of or claim to be a real estate
broker without first - ANSWER obtaining a license from the Texas Real Estate
Commission
, 20. A real estate broker's license is NOT required of persons who - ANSWER
advertise and lease their own properties
21 The Texas Real Estate Commission is composed of - ANSWER nine members,
six of whom are brokers and three of whom are lay members, each appointed by
the governor with senate approval
22. Before people can act in the capacity of or represent themselves as real estate
brokers, they must first - ANSWER obtain a license from the Texas Real Estate
Commission
23. A license holder must use the earnest money contract forms promulgated by
the Commission unless - ANSWER an attorney prepares the forms and the
property owner requires their use
24. Which of the following is NOT a violation for which the Texas Real Estate
Commission (TREC) may suspend or revoke a license or take other disciplinary
action? - ANSWER Failing to advise a buyer or a seller regarding the validity of
title to real estate
25. A licensed real estate broker is not authorized to practice law unless the broker
also is a licensed attorney. Which activity is permitted to be performed by a real
estate license holder? - ANSWER Filling in the blanks of a contract form
promulgated or approved for that use by the Texas Real Estate Commission
(TREC)
26. Which would NOT be considered a violation of antitrust laws? - ANSWER
Brokers throughout the city set their commission rates unilaterally without
consulting with competitors
27. It is the duty of an agent to disclose to the principal every step taken in the
transaction of the principal's business because - ANSWER the agent has a
fiduciary obligation to the principal
28. Misleading or deceptive practices according to the Deceptive Trade Practices
Act (DTPA) include all of the following EXCEPT - ANSWER stating that a
property is being sold "as is."
29. The Deceptive Trade Practices Act (DTPA) does NOT apply to the actions of
real estate agents when an agent - ANSWER makes an exaggerated or
UPDATED 2025 PRACTICE QUESTIONS
WITH ANSWERS - CHAMPIONS
SCHOOL OF REAL ESTATE/GRADED AT
A+
SURE PASS!!
1.Courses for the renewal of an active real estate broker or sales agent license are
called - ANSWER continuing education (CE)
2. What is the maximum amount that the Commission will pay from the real estate
recovery trust account for claims against any one license holder, until the account
has been repaid in full by the license holder? - ANSWER $100,000
3. Which is owned by the tenant? - ANSWER a trade fixture
4. Which of the following terms refers not only to the surface of the earth but also
below to the center of the earth, above to infinity, and natural things permanently
attached but does NOT refer to artificial things permanently attached? - ANSWER
land
5. If the court learns that the seller placed a sign that said "Not Included" on the
stove every time a buyer looked at the property, the court will consider which of
the following in determining whether the stove is a fixture, absent a written
agreement? - ANSWER Intention of the parties
6. What type of estate is complete ownership and exists for an unlimited time? -
ANSWER fee simple
7. If a condition of ownership is violated, title to the subject property automatically
reverts to the original owner in - ANSWER a determinable fee estate
8. An urban homestead is limited to a lot or lots NOT to exceed how many acres? -
ANSWER 10
,9. The method used to describe real estate by distance, direction, and boundaries is
- ANSWER metes-and-bounds method
10. Which equals one square mile or 640 acres? - ANSWER section
11. Under the federal Fair Housing Act, real estate organizations, such as multiple
listing services, may NOT do which because someone is in a protected group? -
ANSWER refuse membership or put conditions on participation
12. Which aspect of the Canons of Professional Ethics and Conduct requires the
broker or sales agent to be informed on market conditions and national, state, and
local developments affecting the real estate business? - ANSWER competency.
13. A complaint of discrimination brought under the Texas Fair Housing Act can
be filed with the U.S. Department of Housing and Urban Development or with -
ANSWER the Texas Workforce Commission Civil Rights Division
14. An aggrieved person who believes illegal discrimination has occurred may file
a complaint within what time frame following the alleged discriminatory act? -
ANSWER ONE YEAR
15. Appurtenant easement rights transfer with - ANSWER the dominant tenement
16. An owner sells part of his land that has no access to a public road but does have
access over his remaining land. This creates an easement by - ANSWER necessity
17. When there are two or more liens on a property, the order in which the liens
will be satisfied when the property is sold will be determined by - ANSWER the
priority of the liens
18. Which of the following may be a natural object, such as a tree or a boulder, or
an artificial object, such as a steel rod or a stake driven into the ground? -
ANSWER Monument
19. It is unlawful for a person to act in the capacity of or claim to be a real estate
broker without first - ANSWER obtaining a license from the Texas Real Estate
Commission
, 20. A real estate broker's license is NOT required of persons who - ANSWER
advertise and lease their own properties
21 The Texas Real Estate Commission is composed of - ANSWER nine members,
six of whom are brokers and three of whom are lay members, each appointed by
the governor with senate approval
22. Before people can act in the capacity of or represent themselves as real estate
brokers, they must first - ANSWER obtain a license from the Texas Real Estate
Commission
23. A license holder must use the earnest money contract forms promulgated by
the Commission unless - ANSWER an attorney prepares the forms and the
property owner requires their use
24. Which of the following is NOT a violation for which the Texas Real Estate
Commission (TREC) may suspend or revoke a license or take other disciplinary
action? - ANSWER Failing to advise a buyer or a seller regarding the validity of
title to real estate
25. A licensed real estate broker is not authorized to practice law unless the broker
also is a licensed attorney. Which activity is permitted to be performed by a real
estate license holder? - ANSWER Filling in the blanks of a contract form
promulgated or approved for that use by the Texas Real Estate Commission
(TREC)
26. Which would NOT be considered a violation of antitrust laws? - ANSWER
Brokers throughout the city set their commission rates unilaterally without
consulting with competitors
27. It is the duty of an agent to disclose to the principal every step taken in the
transaction of the principal's business because - ANSWER the agent has a
fiduciary obligation to the principal
28. Misleading or deceptive practices according to the Deceptive Trade Practices
Act (DTPA) include all of the following EXCEPT - ANSWER stating that a
property is being sold "as is."
29. The Deceptive Trade Practices Act (DTPA) does NOT apply to the actions of
real estate agents when an agent - ANSWER makes an exaggerated or
