Texas State Portion Real Estate Exam
Questions and Answers
what do appraiser take into consideration? - ANSWERS-analyzes physical, political, and social
conditions in the neighborhood of the subject property.
A loan in which the borrower pays interest only over the life of the loan and then pays the entire
principal at maturity of the loan is called? - ANSWERS-a term loan
The provisions of the Real Estate Settlement Procedures Act (RESPA) apply to - ANSWERS-one-
to four-family mortgage loans, including equity loans.
If a seller's agent shares his commission with a buyer's agent - ANSWERS-this is not necessarily
an indication of agency representation.
If a broker negotiates on behalf of both the buyer and the seller, this would indicate some form
of - ANSWERS-dual agency.
If a seller receives multiple offers - ANSWERS-he may accept any one of them regardless of
when it was received "in time."
Administration of ____________ would best be handled by a property manager? - ANSWERS-a
shopping center ( complex details of commercial property are best administered by a
professional property manager.)
The Sinclair's needed two different loans to buy their first home. The loan that will have first
claim on the value of the house in case of foreclosure is the one that was first - ANSWERS-
recorded.
,What is a recording? - ANSWERS-The noting in the registrar's office of the details of a properly
executed legal document, such as deed, mortgage note, satisfaction of mortgage, or extension
of mortgage, thereby making it a part of the public record
Who is responsible for any wrongs done by a salesperson while acting within the scope of the
agency agreement? - ANSWERS-The broker is liable for the wrongdoing of his or her
salespersons. The principal is liable for any wrongs committed by the broker while acting within
the scope of the agency agreement.
what is the distinction between sales contracts and option contracts? - ANSWERS-One
characteristic of sales contracts is mutual obligation. Option contracts lack mutual obligation.
The buyer in an option contract is not obligated to buy.
A listing agreement must contain: - ANSWERS-a standard street address is sufficient.
If the commission investigates a complaint and determines that an individual's real estate
license should be suspended or revoked, the licensee is entitled to a hearing before the
commission within how many days after the commission reaches its decision? - ANSWERS-A
licensee who faces suspension or revocation of their license is entitled to a hearing within 30
days of the commission reaching their decision.
Which of the licensed entities does not fall under the regulatory authority of the Texas Real
Estate Commission? - ANSWERS-The Texas Appraiser Licensing and Certification Board has
jurisdiction over state licensed and certified appraisers. In addition to licensing brokers and
salespersons, the Texas Real Estate Commission is responsible for licensing real estate
inspectors and for regulation of companies that sell and issue residential service contracts
("home warranties"). (Article 65736, Vernon's Texas Civil Statutes.
A licensee in Texas may not practice law, unless licensed and authorized to do so in Texas.
Practicing law includes altering contracts, or drawing up: - ANSWERS-a deed, deed of trust, will,
or other written instrument that may transfer or affect the title to land.
, What penalties may a licensee who breaches the agency relationship face? - ANSWERS-A
licensee who breaches the agency relationship may be sued for damages, termination of the
contract, and/or non-payment of the commission.
Undisclosed dual agency is: - ANSWERS-a violation of the TRELA.
What is the composition of the Broker-Lawyer Committee? - ANSWERS-Six broker members are
appointed by the Texas Real Estate Commission; six attorney members are appointed by the
President of the State Bar of Texas. The appointees serve a term of six years with one-third of
them being appointed every two years.
A licensee must disclose any existing agency relationships to a new client. This disclosure: -
ANSWERS-may be done orally or in writing.
A broker may do which of the following for an individual without actually representing the
individual? - ANSWERS-A broker may obtain financing, assist in locating a property, and prepare
a contract or lease for an individual without representing the individual.
A real estate licensee must notify the real estate program manager if: - ANSWERS-A licensee
must notify the real estate program manager within 20 days of receiving any criminal complaint,
information, indictment, or conviction in which the licensee is named as a defendant; or entry
of a civil court order, verdict, or judgment, against the licensee in any court of competent
jurisdiction in which the subject matter therein involves any real estate or business-related
activity by the licensee.
Pamela, who lives in a suburb in which many homes are rented, decides to open a rental agency
in order to assist her friends in finding suitable renters. Pamela's conduct is - ANSWERS-
unacceptable because it involves an activity for which a real estate license is required.
The sole broker of a brokerage firm has his or her real estate license suspended for two years.
What would happen to the licenses of the salespersons affiliated with this broker? - ANSWERS-If
the broker's license is suspended or revoked, the salespersons' licenses are made inactive and
Questions and Answers
what do appraiser take into consideration? - ANSWERS-analyzes physical, political, and social
conditions in the neighborhood of the subject property.
A loan in which the borrower pays interest only over the life of the loan and then pays the entire
principal at maturity of the loan is called? - ANSWERS-a term loan
The provisions of the Real Estate Settlement Procedures Act (RESPA) apply to - ANSWERS-one-
to four-family mortgage loans, including equity loans.
If a seller's agent shares his commission with a buyer's agent - ANSWERS-this is not necessarily
an indication of agency representation.
If a broker negotiates on behalf of both the buyer and the seller, this would indicate some form
of - ANSWERS-dual agency.
If a seller receives multiple offers - ANSWERS-he may accept any one of them regardless of
when it was received "in time."
Administration of ____________ would best be handled by a property manager? - ANSWERS-a
shopping center ( complex details of commercial property are best administered by a
professional property manager.)
The Sinclair's needed two different loans to buy their first home. The loan that will have first
claim on the value of the house in case of foreclosure is the one that was first - ANSWERS-
recorded.
,What is a recording? - ANSWERS-The noting in the registrar's office of the details of a properly
executed legal document, such as deed, mortgage note, satisfaction of mortgage, or extension
of mortgage, thereby making it a part of the public record
Who is responsible for any wrongs done by a salesperson while acting within the scope of the
agency agreement? - ANSWERS-The broker is liable for the wrongdoing of his or her
salespersons. The principal is liable for any wrongs committed by the broker while acting within
the scope of the agency agreement.
what is the distinction between sales contracts and option contracts? - ANSWERS-One
characteristic of sales contracts is mutual obligation. Option contracts lack mutual obligation.
The buyer in an option contract is not obligated to buy.
A listing agreement must contain: - ANSWERS-a standard street address is sufficient.
If the commission investigates a complaint and determines that an individual's real estate
license should be suspended or revoked, the licensee is entitled to a hearing before the
commission within how many days after the commission reaches its decision? - ANSWERS-A
licensee who faces suspension or revocation of their license is entitled to a hearing within 30
days of the commission reaching their decision.
Which of the licensed entities does not fall under the regulatory authority of the Texas Real
Estate Commission? - ANSWERS-The Texas Appraiser Licensing and Certification Board has
jurisdiction over state licensed and certified appraisers. In addition to licensing brokers and
salespersons, the Texas Real Estate Commission is responsible for licensing real estate
inspectors and for regulation of companies that sell and issue residential service contracts
("home warranties"). (Article 65736, Vernon's Texas Civil Statutes.
A licensee in Texas may not practice law, unless licensed and authorized to do so in Texas.
Practicing law includes altering contracts, or drawing up: - ANSWERS-a deed, deed of trust, will,
or other written instrument that may transfer or affect the title to land.
, What penalties may a licensee who breaches the agency relationship face? - ANSWERS-A
licensee who breaches the agency relationship may be sued for damages, termination of the
contract, and/or non-payment of the commission.
Undisclosed dual agency is: - ANSWERS-a violation of the TRELA.
What is the composition of the Broker-Lawyer Committee? - ANSWERS-Six broker members are
appointed by the Texas Real Estate Commission; six attorney members are appointed by the
President of the State Bar of Texas. The appointees serve a term of six years with one-third of
them being appointed every two years.
A licensee must disclose any existing agency relationships to a new client. This disclosure: -
ANSWERS-may be done orally or in writing.
A broker may do which of the following for an individual without actually representing the
individual? - ANSWERS-A broker may obtain financing, assist in locating a property, and prepare
a contract or lease for an individual without representing the individual.
A real estate licensee must notify the real estate program manager if: - ANSWERS-A licensee
must notify the real estate program manager within 20 days of receiving any criminal complaint,
information, indictment, or conviction in which the licensee is named as a defendant; or entry
of a civil court order, verdict, or judgment, against the licensee in any court of competent
jurisdiction in which the subject matter therein involves any real estate or business-related
activity by the licensee.
Pamela, who lives in a suburb in which many homes are rented, decides to open a rental agency
in order to assist her friends in finding suitable renters. Pamela's conduct is - ANSWERS-
unacceptable because it involves an activity for which a real estate license is required.
The sole broker of a brokerage firm has his or her real estate license suspended for two years.
What would happen to the licenses of the salespersons affiliated with this broker? - ANSWERS-If
the broker's license is suspended or revoked, the salespersons' licenses are made inactive and
