Texas National Portion Real Estate Exam |Questions &
Verified Answers & Rationales | 2025/2026 | Latest Update |
Instant Dowboad !!
1. Which of the following is an example of real property?
A. A refrigerator
B. A dining room table
C. A built-in fireplace
D. A microwave
Correct Answer: C (correct answer)
Rationale: Real property includes land and anything permanently attached to it, such as built-in fixtures. A
fireplace built into the structure is considered real property.
2. A buyer and seller enter into a purchase contract. This contract is considered what type of
contract?
A. Executed
B. Executory
C. Void
D. Unenforceable
Correct Answer: B (correct answer)
Rationale: A real estate purchase agreement is executory until all terms (closing, funding, transfer of title)
are completed.
3. When supply increases and demand remains unchanged, what happens to price?
A. Price increases
B. Price decreases
C. Price stays the same
D. Price becomes unpredictable
Correct Answer: B (correct answer)
Rationale: Basic economic principle — increased supply causes downward pressure on price when demand
is constant.
4. The primary purpose of RESPA is to:
A. Regulate advertising for lenders
B. Ensure borrowers receive loan disclosures
C. Prevent kickbacks and referral fees
D. Set interest rates for FHA loans
,Correct Answer: C (correct answer)
Rationale: RESPA prohibits unearned fees and kickbacks in federally related mortgage transactions.
5. What is the term for land suddenly added to another owner’s land due to water movement?
A. Avulsion
B. Accretion
C. Erosion
D. Reliction
Correct Answer: B (correct answer)
Rationale: Accretion is the gradual buildup of land due to natural forces like water depositing soil.
6. A licensee represents both the buyer and seller in the same transaction. This is known as:
A. Designated agency
B. Subagency
C. Dual agency
D. Transaction brokerage
Correct Answer: C (correct answer)
Rationale: Dual agency means the agent represents both sides and must have informed written consent.
7. What is the main purpose of title insurance?
A. Protects against future zoning changes
B. Protects the buyer from physical defects on the property
C. Protects against defects in the chain of title
D. Guarantees the market value of the property
Correct Answer: C (correct answer)
Rationale: Title insurance protects against past title problems—liens, encumbrances, ownership disputes.
8. An appraiser using the market approach primarily examines:
A. Replacement cost
B. Income generated
C. Comparable sales
D. Depreciation rates
Correct Answer: C (correct answer)
Rationale: The sales comparison (market) approach compares the subject property to recently sold
properties.
9. A buyer is given the right to purchase a property at a set price for 90 days. This contract is a:
, A. Purchase agreement
B. Option contract
C. Right of first refusal
D. Contingency
Correct Answer: B (correct answer)
Rationale: An option contract gives a unilateral right to purchase within a specific time for consideration.
10. Which lien is always paid first at foreclosure?
A. IRS tax lien
B. First mortgage
C. Mechanic’s lien
D. Property tax lien
Correct Answer: D (correct answer)
Rationale: Property tax liens hold superior priority over all other liens.
11. What type of depreciation is caused by outdated or poor floor plans?
A. Functional obsolescence
B. Physical deterioration
C. Economic obsolescence
D. Curable depreciation
Correct Answer: A (correct answer)
Rationale: Functional obsolescence refers to design flaws or outdated features.
12. Zoning laws are an example of:
A. Police power
B. Eminent domain
C. Escheat
D. Taxation
Correct Answer: A (correct answer)
Rationale: Police power allows governments to regulate land use to protect the public.
13. A contract that appears valid but is actually based on fraud is:
A. Void
B. Voidable
C. Valid
D. Enforceable
Correct Answer: B (correct answer)
Rationale: A contract entered into due to fraud is voidable by the injured party.
Verified Answers & Rationales | 2025/2026 | Latest Update |
Instant Dowboad !!
1. Which of the following is an example of real property?
A. A refrigerator
B. A dining room table
C. A built-in fireplace
D. A microwave
Correct Answer: C (correct answer)
Rationale: Real property includes land and anything permanently attached to it, such as built-in fixtures. A
fireplace built into the structure is considered real property.
2. A buyer and seller enter into a purchase contract. This contract is considered what type of
contract?
A. Executed
B. Executory
C. Void
D. Unenforceable
Correct Answer: B (correct answer)
Rationale: A real estate purchase agreement is executory until all terms (closing, funding, transfer of title)
are completed.
3. When supply increases and demand remains unchanged, what happens to price?
A. Price increases
B. Price decreases
C. Price stays the same
D. Price becomes unpredictable
Correct Answer: B (correct answer)
Rationale: Basic economic principle — increased supply causes downward pressure on price when demand
is constant.
4. The primary purpose of RESPA is to:
A. Regulate advertising for lenders
B. Ensure borrowers receive loan disclosures
C. Prevent kickbacks and referral fees
D. Set interest rates for FHA loans
,Correct Answer: C (correct answer)
Rationale: RESPA prohibits unearned fees and kickbacks in federally related mortgage transactions.
5. What is the term for land suddenly added to another owner’s land due to water movement?
A. Avulsion
B. Accretion
C. Erosion
D. Reliction
Correct Answer: B (correct answer)
Rationale: Accretion is the gradual buildup of land due to natural forces like water depositing soil.
6. A licensee represents both the buyer and seller in the same transaction. This is known as:
A. Designated agency
B. Subagency
C. Dual agency
D. Transaction brokerage
Correct Answer: C (correct answer)
Rationale: Dual agency means the agent represents both sides and must have informed written consent.
7. What is the main purpose of title insurance?
A. Protects against future zoning changes
B. Protects the buyer from physical defects on the property
C. Protects against defects in the chain of title
D. Guarantees the market value of the property
Correct Answer: C (correct answer)
Rationale: Title insurance protects against past title problems—liens, encumbrances, ownership disputes.
8. An appraiser using the market approach primarily examines:
A. Replacement cost
B. Income generated
C. Comparable sales
D. Depreciation rates
Correct Answer: C (correct answer)
Rationale: The sales comparison (market) approach compares the subject property to recently sold
properties.
9. A buyer is given the right to purchase a property at a set price for 90 days. This contract is a:
, A. Purchase agreement
B. Option contract
C. Right of first refusal
D. Contingency
Correct Answer: B (correct answer)
Rationale: An option contract gives a unilateral right to purchase within a specific time for consideration.
10. Which lien is always paid first at foreclosure?
A. IRS tax lien
B. First mortgage
C. Mechanic’s lien
D. Property tax lien
Correct Answer: D (correct answer)
Rationale: Property tax liens hold superior priority over all other liens.
11. What type of depreciation is caused by outdated or poor floor plans?
A. Functional obsolescence
B. Physical deterioration
C. Economic obsolescence
D. Curable depreciation
Correct Answer: A (correct answer)
Rationale: Functional obsolescence refers to design flaws or outdated features.
12. Zoning laws are an example of:
A. Police power
B. Eminent domain
C. Escheat
D. Taxation
Correct Answer: A (correct answer)
Rationale: Police power allows governments to regulate land use to protect the public.
13. A contract that appears valid but is actually based on fraud is:
A. Void
B. Voidable
C. Valid
D. Enforceable
Correct Answer: B (correct answer)
Rationale: A contract entered into due to fraud is voidable by the injured party.
