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Texas State Portion Real Estate Exam Questions And Correct Detailed Answers (Verified Answers) Already Graded A+
1. Undisclosed dual agency is:
a) Permissible if no commission is paid
b) A violation of the TRELA
c) Acceptable with oral consent
d) Standard practice in commercial leasing
Correct Answer: b) A violation of the TRELA
- If the commission investigates a complaint and determines that an individual's real
- 10 days
- 30 days
- 60 days
- 90 days
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?
Correct Answer: b) 30 days
- Who is responsible for any wrongs done by a salesperson while acting within the
scope of the agency agreement?
a) The client is liable for the salesperson.
b) The salesperson is solely liable; the broker has no liability.
c) The broker is liable for the wrongdoing of his or her salespersons.
d) The Texas Real Estate Commission is liable.
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Correct Answer: c) The broker is liable for the wrongdoing of his or her salespersons.
(Note: The principal is liable for wrongs committed by the broker).
- What is the composition of the Broker-Lawyer Committee?
a) 12 members: all appointed by the Governor.
b) 13 members: 6 brokers, 6 lawyers, 1 public member.
- 6 broker members appointed by TREC; 6 attorney members appointed by the President
of the State Bar.
d) 9 members: 3 brokers, 3 lawyers, 3 public members.
Correct Answer: c) 6 broker members appointed by TREC; 6 attorney members appointed by the President of the State Bar.
- A licensee in Texas may not practice law unless licensed and authorized to do so.
Practicing law includes altering contracts or drawing up:
a) A deed, deed of trust, will, or other written instrument that may transfer title.
b) A Comparative Market Analysis (CMA).
c) A buyer representation agreement.
d) A listing agreement.
Correct Answer: a) A deed, deed of trust, will, or other written instrument that may transfer title.
- What is the distinction between sales contracts and option contracts?
a) Option contracts require a higher down payment.
b) Sales contracts are oral; option contracts are written.
c) Sales contracts have mutual obligation; option contracts lack mutual obligation (buyer is
not obligated to buy).
d) Sales contracts are for commercial property; option contracts are for residential.
Correct Answer: c) Sales contracts have mutual obligation; option contracts lack mutual obligation (buyer is not obligated to buy).
- A licensee must disclose any existing agency relationships to a new client. This
disclosure:
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a) Must be done via certified mail.
b) Must be done within 3 days of the first meeting.
c) May be done orally or in writing.
d) Is only required for commercial transactions.
Correct Answer: c) May be done orally or in writing.
- What penalties may a licensee who breaches the agency relationship face?
a) Mandatory jail time of 30 days.
b) Sued for damages, termination of the contract, and/or non-payment of commission.
c) A fine of $100 only.
d) No penalties if the deal closes.
Correct Answer: b) Sued for damages, termination of the contract, and/or non-payment of commission.
9. A listing agreement must contain:
a) A legal description (metes and bounds).
b) A standard street address is sufficient.
c) A survey map.
d) The buyer's signature.
Correct Answer: b) A standard street address is sufficient.
- Which of the licensed entities does not fall under the regulatory authority of the
Texas Real Estate Commission?
a) Real estate inspectors.
b) Companies selling home warranties.
c) Real estate brokers.
d) State licensed and certified appraisers.
Correct Answer: d) State licensed and certified appraisers. (Jurisdiction belongs to the Texas Appraiser Licensing and Certification Board).
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- A broker may do which of the following for an individual without actually
representing the individual?
a) Negotiate the price on their behalf.
b) Advise them on the legal sufficiency of the title.
c) Obtain financing, assist in locating a property, and prepare a contract or lease.
d) Protect their confidential information against the other party.
Correct Answer: c) Obtain financing, assist in locating a property, and prepare a contract or lease.
12. A real estate licensee must notify the real estate program manager if:
a) They receive a traffic ticket.
b) They change their car insurance.
c) They receive any criminal complaint, indictment, conviction, or civil judgment involving
real estate within 20 days.
d) They move their personal residence within the same city.
Correct Answer: c) They receive any criminal complaint, indictment, conviction, or civil judgment involving real estate within 20 days.
- 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:
a) Acceptable because she is helping friends.
b) Acceptable if she does not charge a fee.
c) Unacceptable because it involves an activity for which a real estate license is required.
d) Unacceptable only if she manages more than 10 properties.
Correct Answer: c) 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?
