State Real Estate Practice Exam Questions And Correct Detailed Answers (Verified Answers) Already Graded A+

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State Real Estate Practice Exam Questions And Correct Detailed Answers (Verified Answers) Already Graded A+

• Question: When must a licensee present the statutory "Information About Brokerage

Services" to a prospective seller or purchaser?Correct Answer: At the time a meeting occurs where substantive discussion about a specific property takes place.

• Question: Which of the following terms is most synonymous with the buyer when two

licensees are functioning as a listing agent and as a sub-agent?

Options:

• Client
• Principal
• Customer
• Fiduciary

Correct Answer: C) Customer.

• Question: The relationship of a salesperson to their sponsoring broker is:

Correct Answer: Subject to all laws and rules of agency.

• Question: The right that a power company acquires in order to lay a service line across a

customer's property is called:

Correct Answer: An easement in gross.

5. Question: Which of the following is NOT true under the Texas Homestead law?

Options:

• A single person may hold a homestead.
• The homestead may be either urban or rural.
• Homestead rights in property may be terminated by the death of a spouse.

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• The homestead is exempt from forced sale by creditors, with a few exceptions.

Correct Answer: C) Homestead rights in property may be terminated by the death of a spouse.

6. Question: All unilateral contracts are________ contracts.

Options:

• Valid
• Bilateral
• Voidable
• Executed

Correct Answer: C) Voidable.

7. Question: Which of the following is true of a joint tenancy?

Options:

• It can be created by operation of law.
• The conveyance must specifically state the intention to create a joint tenancy.
• It does not include the right of survivorship.
• Ownership shares must be unequal.

Correct Answer: B) The conveyance must specifically state the intention to create a joint tenancy.

• Question: Membership in the Texas Association of Realtors:

Correct Answer: Allows the member to use the TAR contracts and forms.

• Question: What state agency is responsible for licensing and regulating professional real

estate inspectors and their apprentice inspectors?

Correct Answer: The Texas Real Estate Commission.

• Question: Jamie owned the fee simple title to a vacant lot adjacent to a hospital and

was persuaded to make a gift of the lot to the hospital. She wanted to have some control over its use, so her attorney prepared her deed to convey ownership of the lot to the hospital "so long as it is used for hospital purposes." After completion of the gift, the

hospital will own a:

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Correct Answer: Determinable fee estate.

11. Question: What can TREC do if a licensee does not comply with a subpoena?

Correct Answer: File suit through the Attorney Generals office.

• Question: The Fair Housing Act of 1988, which addresses accessibility in new multi-

family buildings for people with physical disabilities, mandates all of the following EXCEPT:

Options:

• Wheelchair accessible doors.
• Accessible light switches.
• Elevators or power lifts.
• Accessible common areas.

Correct Answer: C) Elevators or power lifts.

• Question: If the seller is to remain in the property after closing:

Correct Answer: A seller's temporary Lease Form promulgated by TREC should be

attached to the contract.

• Question: A seller told her broker that she wanted a net $150,000 after she paid off the

$60,000 loan that she owed to Deep Pocket Mortgage Company. The broker found a buyer willing to pay $300,000 for the property. The broker arranged the sale and gave the seller the $150,000 she wanted. Which of the following statements is FALSE?

Options:

• The broker acted properly.
• The amount retained as a commission exceeded the maximum permitted by the state's

usury ceiling.

• This is an example of a net listing.
• The broker's fee exceeded typical commission standards.

Correct Answer: B) The amount retained as a commission exceeded the maximum

permitted by the state's usury ceiling.

• Question: In order for a broker to bring suit to collect a brokerage fee, the broker must

do all of the following EXCEPT:

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Options:

• Have an agreement in writing.
• Have the transaction close.
• Hold an active real estate license.
• Advise the buyer to obtain a title policy.

Correct Answer: B) Have the transaction close.

• Question: A real estate salesperson decides to sell his own property without using a

broker. In offering his property for sale, what must the salesperson do?Correct Answer: He must disclose to the buyer that he holds a real estate license.

• Question: The Texas Homestead Law provides for a reduction in ad valorem tax liability

on a principal residence for all but which of the following individuals?

Options:

• A single homeowner.
• A married couple.
• By Texas Law an owner can only legally have one homesteaded property at a time.
• A disabled veteran.

Correct Answer: C) By Texas Law an owner can only legally have one homesteaded

property at a time.

• Question: The TAR Residential Buyer/Tenant Representation Agreement says that the

buyer's broker is:

Correct Answer: Allowed to represent other prospects.

19. Question: Which of the following statements is true of a land contract?

Options:

• The seller transfers legal title immediately.
• The buyer is given the right to possession.
• It is illegal in Texas.
• The buyer holds fee simple title.