TEXAS REAL ESTATE LAW EXAM 2025 |200 QUESTIONS WITH
VERIFIED ACCURATE SOLUTIONS
1. What is another name for a contract for deed in Texas real estate
law? Lease agreement
Installment contract
Sales agreement
Option contract
2. Explain the significance of surface rights in real estate transactions in
Texas. Why are they important for property owners?
They allow property owners to sell their land without restrictions.
They enable property owners to extract and utilize
natural resources from their land.
They provide legal protection against property taxes.
They ensure that property owners can build as many structures as
they want.
3. Explain the significance of subsurface rights in the context of Texas
real estate law.
They allow property owners to control surface water usage.
They grant property owners the ability to sell mineral rights
separately from the land.
They ensure that all property owners have equal rights to the land.
They limit the types of structures that can be built on the property.
4. If a city decides to downzone a residential area to single-family homes
only, what potential effects might this have on existing multi-family housing
developments in that area?
, Existing multi-family housing developments would be allowed to
expand.
Existing multi-family housing developments may face legal
challenges and could be required to convert to single-
family homes.
Existing multi-family housing developments would be unaffected
and could continue operating as usual.
Existing multi-family housing developments would automatically be
upgraded to commercial status.
5. Explain the significance of the listing agreement in the context of
Texas real estate transactions.
It allows buyers to negotiate terms with sellers directly.
It formalizes the relationship between the seller and the broker,
detailing the broker's responsibilities.
It serves as a public record of property ownership.
It outlines the legal consequences of failing to complete a sale.
6. If two friends decide to purchase a property together and want to ensure
that if one of them passes away, their share automatically goes to the
surviving friend, which form of ownership should they choose?
Estate in severalty
Tenancy in common
Joint tenancy
Trust ownership
7. What are littoral rights in the context of Texas real estate
law? The right to use water from a river adjacent to
property
The right to use water from a lake, ocean, or sea on or next to
property
, The right to build structures on a floodplain
The right to access mineral resources beneath the land
8. Explain how the Statute of Frauds impacts real estate transactions in
Texas. It allows verbal agreements to be legally binding.
It mandates that all real estate contracts must be notarized.
It ensures that specific types of contracts are documented in
writing to protect parties involved.
It requires all real estate transactions to be approved by the Texas
Real Estate Commission.
9. If a utility company has an easement in gross on a residential
property, what implications does this have for the homeowner?
The homeowner can build structures on the easement area without
restrictions.
The homeowner must allow the utility company access to the
easement area for maintenance.
The homeowner can revoke the easement at any time without
consequences.
The homeowner is required to pay the utility company for the
easement.
10. If a buyer enters into a buyer-agency agreement with a broker,
what implications does this have for their relationship with other
brokers in Texas?
The buyer can work with multiple brokers simultaneously without
restrictions.
The buyer is legally obligated to work exclusively with the
broker specified in the agreement.
, The buyer can terminate the agreement at any time without
consequences.
The buyer must pay a commission to any broker they engage with.
11. What are trade fixtures in the context of Texas real estate
law? Items permanently attached to the property
Items necessary for an individual to carry out his/her trade or
profession
Items that increase the value of the property
Items that are considered personal property only
12. Which of the following is NOT an element typically included in a Listing
Agreement?
Agency relationships
Market value of the property being listed
Property tax assessments
Brokerage fees
13. If a property owner in Texas holds a freehold estate, which of the
following actions can they legally take without needing permission from
others?
Sell the property to a new
owner Sublet the property to a
tenant
Construct a new building on the property
All of the above
14. Explain how police power impacts land use regulations in Texas
real estate. Which of the following best describes its role?
It allows the government to take ownership of all land.
VERIFIED ACCURATE SOLUTIONS
1. What is another name for a contract for deed in Texas real estate
law? Lease agreement
Installment contract
Sales agreement
Option contract
2. Explain the significance of surface rights in real estate transactions in
Texas. Why are they important for property owners?
They allow property owners to sell their land without restrictions.
They enable property owners to extract and utilize
natural resources from their land.
They provide legal protection against property taxes.
They ensure that property owners can build as many structures as
they want.
3. Explain the significance of subsurface rights in the context of Texas
real estate law.
They allow property owners to control surface water usage.
They grant property owners the ability to sell mineral rights
separately from the land.
They ensure that all property owners have equal rights to the land.
They limit the types of structures that can be built on the property.
4. If a city decides to downzone a residential area to single-family homes
only, what potential effects might this have on existing multi-family housing
developments in that area?
, Existing multi-family housing developments would be allowed to
expand.
Existing multi-family housing developments may face legal
challenges and could be required to convert to single-
family homes.
Existing multi-family housing developments would be unaffected
and could continue operating as usual.
Existing multi-family housing developments would automatically be
upgraded to commercial status.
5. Explain the significance of the listing agreement in the context of
Texas real estate transactions.
It allows buyers to negotiate terms with sellers directly.
It formalizes the relationship between the seller and the broker,
detailing the broker's responsibilities.
It serves as a public record of property ownership.
It outlines the legal consequences of failing to complete a sale.
6. If two friends decide to purchase a property together and want to ensure
that if one of them passes away, their share automatically goes to the
surviving friend, which form of ownership should they choose?
Estate in severalty
Tenancy in common
Joint tenancy
Trust ownership
7. What are littoral rights in the context of Texas real estate
law? The right to use water from a river adjacent to
property
The right to use water from a lake, ocean, or sea on or next to
property
, The right to build structures on a floodplain
The right to access mineral resources beneath the land
8. Explain how the Statute of Frauds impacts real estate transactions in
Texas. It allows verbal agreements to be legally binding.
It mandates that all real estate contracts must be notarized.
It ensures that specific types of contracts are documented in
writing to protect parties involved.
It requires all real estate transactions to be approved by the Texas
Real Estate Commission.
9. If a utility company has an easement in gross on a residential
property, what implications does this have for the homeowner?
The homeowner can build structures on the easement area without
restrictions.
The homeowner must allow the utility company access to the
easement area for maintenance.
The homeowner can revoke the easement at any time without
consequences.
The homeowner is required to pay the utility company for the
easement.
10. If a buyer enters into a buyer-agency agreement with a broker,
what implications does this have for their relationship with other
brokers in Texas?
The buyer can work with multiple brokers simultaneously without
restrictions.
The buyer is legally obligated to work exclusively with the
broker specified in the agreement.
, The buyer can terminate the agreement at any time without
consequences.
The buyer must pay a commission to any broker they engage with.
11. What are trade fixtures in the context of Texas real estate
law? Items permanently attached to the property
Items necessary for an individual to carry out his/her trade or
profession
Items that increase the value of the property
Items that are considered personal property only
12. Which of the following is NOT an element typically included in a Listing
Agreement?
Agency relationships
Market value of the property being listed
Property tax assessments
Brokerage fees
13. If a property owner in Texas holds a freehold estate, which of the
following actions can they legally take without needing permission from
others?
Sell the property to a new
owner Sublet the property to a
tenant
Construct a new building on the property
All of the above
14. Explain how police power impacts land use regulations in Texas
real estate. Which of the following best describes its role?
It allows the government to take ownership of all land.
