Texas State Portion Real Estate Exam Questions, Answers &
Rationales | 2025/2026 | Latest Update | Instant Dowboad !!
1.
Which of the following best defines real property?
A. Personal possessions
B. Land, improvements, and rights associated with the land (correct answer)
C. Movable objects like furniture
D. Lease agreements only
Rationale:
Real property includes land, buildings, and the legal rights associated with ownership, unlike personal
property which is movable.
2.
A real estate broker in Texas is responsible for:
A. Representing clients only in sales
B. Supervising licensees and ensuring compliance with the Texas Real Estate License Act (correct
answer)
C. Setting property taxes
D. Inspecting homes for structural defects
Rationale:
Brokers oversee their agents, ensuring all activities comply with TRELA rules; they do not perform
inspections or set taxes.
3.
Which of the following is an example of a freehold estate?
A. Leasehold
B. Estate for years
C. Fee simple absolute (correct answer)
D. Estate at will
Rationale:
A fee simple absolute is an ownership interest with indefinite duration — a type of freehold estate.
4.
In Texas, a listing agreement must be:
A. Oral to be valid
B. In writing to be enforceable (correct answer)
,C. Only notarized
D. Signed by the buyer
Rationale:
The statute of frauds requires that contracts conveying real property rights, including listing agreements, be
in writing.
5.
A licensee places an advertisement stating, “Best homes guaranteed!” This is considered:
A. Fact-based marketing
B. Acceptable opinion
C. Misleading or deceptive advertising (correct answer)
D. Required disclosure
Rationale:
Exaggerated or unsubstantiated claims can mislead consumers and violate TRELA advertising rules.
6.
The Texas Real Estate Commission (TREC) has authority to:
A. Pass state law
B. Regulate real estate licenses and enforce TRELA (correct answer)
C. Approve mortgages
D. Set property taxes
Rationale:
TREC enforces licensing laws, approves education programs, and regulates licensees, but cannot pass laws
or manage taxes.
7.
Which of the following best describes an easement appurtenant?
A. A personal right to cross someone’s property
B. A right that benefits a particular piece of land (correct answer)
C. A temporary lease
D. Ownership of air rights only
Rationale:
An easement appurtenant attaches to a property and benefits its owner, unlike an easement in gross which
benefits a person.
8.
A property manager collecting rent on behalf of an owner is considered:
A. Principal
B. Broker only
, C. Fiduciary (correct answer)
D. Tenant
Rationale:
A property manager acts as a fiduciary, owing duties of loyalty, care, and disclosure to the property owner.
9.
Which type of agency exists when a licensee represents both the buyer and the seller with informed consent?
A. Single agency only
B. Intermediary agency (correct answer)
C. Universal agency
D. Subagency
Rationale:
Texas law allows an intermediary relationship if both parties consent, with specific disclosure and duties.
10.
A buyer wants to make an offer contingent upon obtaining financing. This contingency:
A. Is not allowed in Texas contracts
B. Automatically voids the contract
C. Protects the buyer until loan approval (correct answer)
D. Requires TREC approval
Rationale:
Contingencies can protect a buyer, allowing contract termination without penalty if conditions (like
financing) are not met.
11.
Which of the following is a valid example of consideration in a real estate contract?
A. A promise to sell without payment
B. Money, promises, or services exchanged for a property (correct answer)
C. Future potential profits only
D. Oral promise without exchange
Rationale:
Consideration is the value exchanged in a contract, which can include money, services, or promises.
12.
A salesperson receives an earnest money deposit. According to TREC rules, the deposit must be:
A. Kept personally by the salesperson
B. Returned immediately to the buyer
C. Deposited into escrow by the third business day (correct answer)
D. Deposited after closing
Rationales | 2025/2026 | Latest Update | Instant Dowboad !!
1.
Which of the following best defines real property?
A. Personal possessions
B. Land, improvements, and rights associated with the land (correct answer)
C. Movable objects like furniture
D. Lease agreements only
Rationale:
Real property includes land, buildings, and the legal rights associated with ownership, unlike personal
property which is movable.
2.
A real estate broker in Texas is responsible for:
A. Representing clients only in sales
B. Supervising licensees and ensuring compliance with the Texas Real Estate License Act (correct
answer)
C. Setting property taxes
D. Inspecting homes for structural defects
Rationale:
Brokers oversee their agents, ensuring all activities comply with TRELA rules; they do not perform
inspections or set taxes.
3.
Which of the following is an example of a freehold estate?
A. Leasehold
B. Estate for years
C. Fee simple absolute (correct answer)
D. Estate at will
Rationale:
A fee simple absolute is an ownership interest with indefinite duration — a type of freehold estate.
4.
In Texas, a listing agreement must be:
A. Oral to be valid
B. In writing to be enforceable (correct answer)
,C. Only notarized
D. Signed by the buyer
Rationale:
The statute of frauds requires that contracts conveying real property rights, including listing agreements, be
in writing.
5.
A licensee places an advertisement stating, “Best homes guaranteed!” This is considered:
A. Fact-based marketing
B. Acceptable opinion
C. Misleading or deceptive advertising (correct answer)
D. Required disclosure
Rationale:
Exaggerated or unsubstantiated claims can mislead consumers and violate TRELA advertising rules.
6.
The Texas Real Estate Commission (TREC) has authority to:
A. Pass state law
B. Regulate real estate licenses and enforce TRELA (correct answer)
C. Approve mortgages
D. Set property taxes
Rationale:
TREC enforces licensing laws, approves education programs, and regulates licensees, but cannot pass laws
or manage taxes.
7.
Which of the following best describes an easement appurtenant?
A. A personal right to cross someone’s property
B. A right that benefits a particular piece of land (correct answer)
C. A temporary lease
D. Ownership of air rights only
Rationale:
An easement appurtenant attaches to a property and benefits its owner, unlike an easement in gross which
benefits a person.
8.
A property manager collecting rent on behalf of an owner is considered:
A. Principal
B. Broker only
, C. Fiduciary (correct answer)
D. Tenant
Rationale:
A property manager acts as a fiduciary, owing duties of loyalty, care, and disclosure to the property owner.
9.
Which type of agency exists when a licensee represents both the buyer and the seller with informed consent?
A. Single agency only
B. Intermediary agency (correct answer)
C. Universal agency
D. Subagency
Rationale:
Texas law allows an intermediary relationship if both parties consent, with specific disclosure and duties.
10.
A buyer wants to make an offer contingent upon obtaining financing. This contingency:
A. Is not allowed in Texas contracts
B. Automatically voids the contract
C. Protects the buyer until loan approval (correct answer)
D. Requires TREC approval
Rationale:
Contingencies can protect a buyer, allowing contract termination without penalty if conditions (like
financing) are not met.
11.
Which of the following is a valid example of consideration in a real estate contract?
A. A promise to sell without payment
B. Money, promises, or services exchanged for a property (correct answer)
C. Future potential profits only
D. Oral promise without exchange
Rationale:
Consideration is the value exchanged in a contract, which can include money, services, or promises.
12.
A salesperson receives an earnest money deposit. According to TREC rules, the deposit must be:
A. Kept personally by the salesperson
B. Returned immediately to the buyer
C. Deposited into escrow by the third business day (correct answer)
D. Deposited after closing
