Texas 30-Hour Principles of Real Estate Practice Exam

These questions are part of the practice quiz. Start practicing

• What agency is responsible for maintaining the balance of the Recovery Trust Account at $1.7 million or more?
• For how many years does TREC allow a person to file a complaint against a license holder?
• How many days does a person have to request a hearing after receiving a notice of violation from TREC?
• What federal legislation prohibits real estate firms from agreeing to charge the same commission rate?
• When will Avery know the results of her licensing exam after she completes it?
• What is typically the first step a buyer takes when seeking to purchase a home?
• How do corporations hold their estates?
• What effect do homestead exemptions have on property values in Texas?
• What is the definition of actual cash value in real estate terms?
• Under which circumstance might a real estate agent be found liable for misrepresentation?
• Acme Development Corporation wants to build a planned unit development for seniors. What do they need to file with the planning board?
• Which of the following is considered good consideration in real estate?
• How is a section defined in the rectangular government survey system?
• What may a property owner currently have on their property?
• According to the NAR Code of Ethics, which statement is true about accepting compensation?
• Which of the following statements is accurate regarding the Recovery Trust Account?
• What occurs to the property when the life tenant dies?
• What document is used to prove buildings are elevated to prevent flood damage?
• What is meant by "exclusive right to sell" in real estate listings?
• What was the first law regulating real estate brokerage in Texas, originally passed in 1939?
• In Texas, who is typically required to provide a property disclosure statement?
• Which statement about independent contractors and employees is true?
• What does "open agency" allow a buyer to do?
• Which type of antitrust violation occurs when real estate firms agree to divide their market so they don't compete with one another?
• What is an example of a fiduciary duty in real estate?
• What ownership type is defined by four unities: time, title, interest, and possession?
• What is the outcome of blockbusting typically aimed at?
• Which of the following describes the role of a general agent?
• In real estate, what describes 'good consideration'?
• How is a voidable contract classified when one party is under the age of majority?
• According to the parol evidence rule, what is true about written contracts?
• What is the responsibility of the State Office of Administrative Hearings during a hearing of an alleged violator?
• In Texas, how can sales agents receive compensation for real estate services?
• A central element of an antitrust violation is _______.
• Which act specifically provides individuals the right to buy, sell, convey, inherit, and possess property?
• In a joint tenancy, how is property interest divided when one party sells their interest and another party dies?
• The Home Mortgage Disclosure Act (HMDA) requires lenders to report on which aspect?
• A contract for an illegal purpose is classified as what?
• What type of antitrust violation occurs when brokerages agree to stop running advertisements in a local publication?
• A homeowner cannot complete repairs after damage to their home. What type of coverage is this an example of?
• What is required in the application process for a real estate license?
• What defines a bilateral contract?
• In a real estate transaction where Nate represents Elena and Katherine represents Timothy, what duty does Nate owe Timothy?
• What type of involuntary lien is placed on an estate if there are unpaid debts after death?
• In the listing agreement for Fred's property sale, who are the parties involved?
• Where can a real estate agent report an antitrust violation?
• Which statement about a Texas broker's office is true?
• What is a critical reason for buyers to consider mineral rights when purchasing rural land?
• How is a net listing best described?
• What is the liability of a Texas licensee who cooperated with others to commit a third-degree felony?
• In real estate, what does the term encumbrance refer to?
• What type of consideration is necessary for a valid contract in real estate?
• Which of the following is a true statement about federal antitrust penalties?
• Which of the following is NOT typically included in a seller's disclosure of property condition?
• What courses must be completed among the mandatory continuing education hours?
• What is the term for an agent who buys, sells, leases, or transfers easements?
• What is the statute of limitations for filing a fair housing complaint with HUD?
• What is the primary purpose of a testamentary trust?
• Which market is made up of major lenders who sell loans to those that service and retain them?
• In a condominium declaration, ownership of the common areas is shared among whom?
• When Kenneth kept the earnest deposit after Valerie backed out of the deal, what is this an example of?
• Sherman is a listing agent. At what point is he no longer obligated to present offers to his seller client?
• What is a base line in the rectangular government survey system?
• What is a possible outcome if a brokerage is found guilty of violating antitrust law?
• For tax years 2018 to 2025, when can a borrower write off the interest on a home equity loan?
• In real estate, the term "procuring cause" refers to what?
• What happens when a municipality completes an "in rem" foreclosure?
• How many days before filing a lawsuit must Mavis notify the licensee under the DTPA?
• Over which area do local authorities lack police power?
• For a lease of real estate to be enforceable in Texas, what is the required duration for it to be in writing?
• In real estate, what is the main role of an individual who brings together buyers and sellers?
• How many states have community property rights?
• What is the purpose of breaking down rental payments into PITI?
• What is the legal requirement for the Information About Brokerage Services form in Texas?
• How long must Kathy wait to submit a new application after her first application is rejected?
• What happens if Dwight misrepresents the flood risk of a property?
• IRA funds distributed under the first-time home buyer program require that borrowers use them within ___________ to acquire, build, or improve a residence, and for closing costs.
• Who does the DTPA define as a consumer for the purposes of filing a lawsuit?
• How is estate tax calculated initially?
• How far in advance must a reservation be made for the licensing exam?
• Under what condition can a Texas sales agent's license be immediately rendered inactive?
• What must a seller provide the buyer before taking further action in a contract for deed default?
• What was the status of Ken and Debra’s contract when he signed it before turning 18?
• Which of the following best describes the purpose of redlining?
• What is the co-insurance clause in insurance policies?
• What is inverse condemnation?
• What form of real property ownership allows equal shares with undivided possession rights?
• When a real estate licensee receives compensation for referring a client, this is known as what?
• What type of interest do property owners have in their property?
• Which of the following is a common feature of real property?
• What recourse does a person have if their sales agent application is rejected by TREC?
• Which legal description method involves dividing land into rectangular sections?
• What is the significance of earnest money in real estate transactions?
• What type of membership did Clint purchase for vacation alternatives?
• What is typically a consequence of violating the Fair Housing Act?
• In Texas, what is required for a real estate licensee to sell manufactured homes without an additional license?
• How is equity calculated?
• What is required for a lawsuit under the DTPA?
• What is the penalty for an unlicensed person practicing real estate in Texas?
• In regards to disparate impacts, which of the following is illegal?
• What type of agent is Josephina when she represents only one client to avoid favoritism?
• How large is a section in the rectangular government survey system?
• Will Ginnie have to retake her pre-licensing courses after letting her real estate license expire?
• What is true regarding estate tax?
• What does the parol evidence rule state about contracts?
• Which practice can lead to disparate treatment in real estate?
• What is the primary purpose of a buyer agency agreement?
• In a contract, which of the following provides evidence of each party's rights and responsibilities?
• Which factor does NOT typically influence housing market demand?
• What is the purpose of a special assessment tax?
• In the situation where a middle school student is hired to mow a lawn and a written contract is drawn up, what is true regarding the nature of their agreement?
• What is the starting point for any land surveyor who has been asked to perform a survey?
• To qualify as a real estate professional member of the ESAC, a candidate must have been actively engaged in real estate for how long?
• What is the renewal fee when a Texas license has been expired for 91 days to six months?
• If a property is within a Municipal Utility District, what disclosure is required before the contract?
• What is the major consequence of violating fair housing laws?
• What is the maximum civil penalty for an individual found guilty of antitrust violations in Texas?
• Which of the following is NOT an unwanted intrusion according to the Telephone Consumer Protection Act?
• What kind of property interest does a freehold represent?
• What can be improved by using funds from a special assessment tax?
• Which acronym helps to remember the duties a licensee owes to customers, and what does it include?
• Which statement accurately reflects the purpose of the Equal Credit Opportunity Act?
• What action must a licensee take to fulfill a fiduciary duty?
• What does HMDA data include about loans?
• How does a living trust differ from a testamentary trust?
• Is it legal for a church in Texas to rent apartments only to members of its denomination?
• Which of the following is an example of a unilateral contract?
• What does TREC stand for?
• If a Texas licensee violates fair housing laws, which entity can award monetary damages?
• What is the definition of novation in contract law?
• What best defines an equitable lien?
• What type of legal description is Morty using if he refers to an iron pin on a state route?
• Which scenario represents a unilateral contract?
• Is including a picture of a local church in an MLS listing allowed?
• Which agency enforces fair housing law?
• How many days do businesses have to remove a consumer's email address from their mailing list under the Texas anti-spam law?
• If a lender practices redlining, which practice are they employing?
• Which of the following is true about the actual cash value of a property?
• What type of assistance can the association of REALTORS® in Marissa's state provide her?
• A buyer of five acres in rural Texas should be concerned about what regarding mineral rights?
• How much time are Texas real estate license applicants given to complete their licensing examinations?
• If a Texas broker decides to stop using an assumed business name, what is required?
• What does a mutual agreement indicate in real estate transactions?
• Which of the following accurately describes the agency relationship in real estate?
• A net listing may be used in which type of listing, provided it is legal?
• What is generally true about land trusts?
• What is likely to happen if Ralph failed to pay property taxes for three years?
• How should Kellan and Stacy resolve their property boundary dispute?
• Why are limited liability companies and partnerships favorable business forms?
• Kelo v. City of New London was a court case that focused on what power?
• How many classroom hours must an individual complete to receive a broker's license in Texas?
• What is the minimum balance required for the Recovery Trust Account?
• Max, a Texas broker, has registered his business name. What else must he do to legally run an ad?
• What does the term "involuntary lien" refer to in real estate?
• What must a listing in the MLS always include?
• Which statement is true regarding brokers and sales agents specializing in property transactions?
• What is a primary function of a multiple listing service (MLS)?
• Which type of property ownership may not discriminate based on national origin in Texas?
• An inheritable freehold estate that's a fee simple defeasible (where the grantor can reclaim ownership) is also known as what?
• In real estate, who primarily provides clients with necessary information for informed decision-making?
• What must a license holder do if their license has been expired for six months or longer?
• What is the term for Sherman neglecting his property in a life estate, which diminishes its value?
• What type of home is specifically designed for transportability on a permanent chassis?
• When a Texas applicant arrives at the testing center, what types of identification must they provide?
• Which type of legal description do courts prefer for its clarity?
• Which term describes the client’s obligation to compensate the agent for services rendered?
• Leon and Beth own multiple weeks in a timeshare estate. What type of ownership do they have?
• What type of survey shows the location, size, and shape of improvements on a property?
• What type of lien is filed by suppliers for products used in property construction?
• Which statement is NOT true regarding an easement appurtenant?
• What is blockbusting in real estate?
• Which statement about licensees cooperating with other licensees is true?
• Which agency is responsible for handling complaints related to the Equal Credit Opportunity Act (ECOA)?
• What is the most common finance method for a real estate purchase?
• Homestead exemptions affect property taxes for homeowners by doing what?
• What is the purpose of a title search when purchasing real estate?
• What is the renewal fee for a real estate license that has been expired for 90 days or less?
• Beneficiary interest in land that's part of a land trust is considered ______.
• What is the likely result for a minor entering into a real estate contract?
• What is required for an independent contractor to maintain their tax status?
• What action should a real estate agent take upon receiving a fair housing complaint?
• Per Texas statute of frauds, a contract for the sale of real estate must be in writing and what else?
• How is Regulation B connected to the Equal Credit Opportunity Act?
• Which act aims to eliminate price-fixing among competing firms in real estate?
• Which entity is most likely to rely on a land trust for inheritance purposes?
• How many acres are there in a quarter section in a rectangular survey?
• What form of discrimination is evident when a landlord with a strict "no pets" policy refuses to rent to a woman who uses a service animal for her disability?
• When a land trust expires, what must the trustee do with the real estate?
• What term describes a policy that negatively impacts a protected class more than others?
• What problem might arise if the legal description is excluded from a real estate offer?
• Which act requires lenders to provide reasons for rejecting loan applications?
• What are net listings in real estate?
• What option does a sales agent have if they cannot complete their continuing education before license renewal?
• Which of the following statements is true regarding timeshare ownership?
• Is a license holder required to disclose information about a death at a property if it was due to a defect on that property?
• Which statement about surface rights and sub-surface rights is true?
• Under the statute of frauds, which requirement is NOT necessary for Henry's real estate offer to be enforceable?
• What is the goal of the parol evidence rule related to contracts?
• Lewis and Elliot started a real estate investment business and incorporated to be treated like a partnership. What form of business did they establish?
• What is the consequence of a license holder not renewing their license for six months?
• What is required for all real estate transactions in Texas regarding brokerage services?
• Which action may fall outside of TREC's authority regarding advertising practices?
• What term describes a lender's refusal to lend in a specific area based on its minority demographics?
• In an exclusive agency contract, what limitation is placed on the principal?
• What does the term "group boycotting" refer to in real estate?
• What should a new real estate licensee include in their first purchase offer?
• Which Texas law allows solicitation over the phone if the consumer has made an inquiry within the last three months?
• What is an effect of a default under a contract for deed?
• What is the maximum administrative penalty for a broker who illegally shares a commission with a friend in Texas?
• As a court-appointed guardian, what type of agent is Marion?
• Who has the authority to request a CLUE report?
• Which of the following is considered a violation of the Texas Real Estate License Act?
• What type of listing agreement allows a seller to contract with one agent but retain the right to find a buyer themselves?
• What does the lot and block system reference?
• Who is required to complete a property disclosure notice in Texas?
• In real estate transactions, what role does a broker play when dealing with independent contractors?
• The listing agent is responsible for marketing the client's property based on what?
• What type of agreement did Vicky and Lee purchase for vacationing in Cancun?
• What is the length of a TREC member's term?
• What is a key characteristic of modular homes in terms of financing?
• Which agency is responsible for enforcing fair housing laws and ensuring compliance?
• Which legal description is not utilized in Texas?
• What kind of estate or tenement does Kurt hold when requiring an easement for his driveway?
• Before using a showing service for property viewings, which form must be signed?
• What best defines a contract for a deed?
• When does express agency exist?
• In real estate transactions, what is the primary purpose of discount points?
• Why might a broker choose to specialize in a specific type of property?
• When a buyer insists the agent breaches their duty to the contract, what is at odds with the agent's duty?
• Which of the following is a role of administrative law?
• Which properties do NOT need to go through probate?
• Which legal description method is regulated by the U.S. Department of the Interior's Bureau of Land Management?
• Which form of business structure often limits personal liability for its members?
• How many days does a broker have to notify TREC if their business address has changed?
• In the context of real estate, what does community property allow for?
• What is the primary focus of an HO-A amended policy?
• What type of policy is an HO-A amended policy?
• Which best defines real property?
• If someone has a complaint alleging an antitrust violation in Texas, how long do they have to file the complaint?
• What type of agency is established when a broker is asked to show homes without a signed agreement?
• What must a Texas broker apply for if they have more than one place of business in Texas?
• If a broker license application is rejected and the notice for a hearing is filed late, what happens?
• In a real estate transaction, what is meant by "prepaid interest"?
• A real estate contract that lacks a legal purpose is considered?
• How many elective continuing education hours must be completed for Texas real estate licenses?
• What type of agent has the authority to perform a variety of tasks, such as managing property?
• What action is TREC not permitted to take regarding license holders and contracts?
• Which of the following can hold a broker's license in Texas?
• When a homeowner constructs bookshelves that are bolted to the wall and become integral to the room, what are they considered when selling the home?
• Jacob, a developer, invested in infrastructure for his subdivision to recoup his investment. This illustrates which economic characteristic of real property?
• Which type of ownership allows a person to prepay for a timeshare instead of renting it?
• What are deed restrictions imposed by a developer called?
• In what year was the Americans with Disabilities Act enacted?
• What is true about deducting interest on mortgages for tax years between 2018 and 2025?
• When is it permissible to contact a former client on the Texas Do Not Call list to solicit business?
• What act requires lenders to provide equitable access to credit?
• What type of water rights do Hal and Sara hold for their landlocked property with a distant irrigation source?
• What is the term for the substitution of one party in a contract for another party?
• Which entity enforces the regulations regarding real estate practices in Texas?
• What characteristic of a physical feature determines land boundaries?
• Which of the following expenses can homeowners typically deduct on their taxes?
• What does assignment of a contract entail?
• Within a tax sale, which of the following can occur?
• What defines the boundaries of a piece of land?
• Where is the best place for licensees to spend their marketing dollars?
• Which situation illustrates price fixing?
• To calculate property taxes, which value needs to be multiplied by the tax rate?
• Which document typically establishes a trust?
• What is the role of a fiduciary in real estate transactions?
• A legal document that allows a utility company to maintain power lines on someone's property is known as what?
• What happens to a seller agency agreement if the property is destroyed before closing?
• What is it called when a sponsoring broker pays a buyer a portion of the commission received from a sales transaction?
• What type of specialization is Eric likely interested in if he wants to focus on manufacturing and large office buildings?
• What does a land trust typically do regarding the ownership of property?
• Which type of easement allows access to a property without allowing ownership?
• What must a real estate licensee do if a customer requests to be placed on a "do not call" list?
• What type of ownership does not allow for survivorship rights, allowing heirs to inherit interest in the property?
• In which situation is a listing most likely to terminate due to listing agreement expiration?
• Which agencies are responsible for performing a criminal background check on all license applicants?
• Which statement is true regarding independent contractors and taxes?
• What act was introduced to combat discriminatory lending practices?
• What is a central element of an antitrust violation?
• What is redlining?
• The ESAC provides recommendations to which organization?
• What does a greater percentage of the mortgage payment apply to over time as the mortgage is paid off?
• What does MLS stand for in real estate?
• Which form must sellers complete and sign before uploading property information online?
• In the computation of estate taxes, what happens to lifetime taxable gifts?
• What does niche marketing in real estate involve?
• If Marlee wants to specialize in the sale, purchase, and lease of easements in Texas, what is she required to obtain?
• What does a metes and bounds description refer to?
• How long does Norman have to sue Connie for taking the outdoor grill specified in their sales contract?
• What is the impact of being classified as an independent contractor for tax purposes?
• What does the registration of an assumed business name with the secretary of state or county clerk's office in Texas provide?
• What are the primary duties owed from a client to an agent?
• A portion of a property being used by a utility company to maintain its power lines is an example of what?
• What is one of the primary benefits of establishing a Subchapter S Corporation?
• Upon receiving his license, what must Texas sales agent Carl complete by the end of his initial two-year licensing period?
• When does a buyer's market typically occur?
• Which principle is likely to impact the housing market when the local economy improves?
• How is the housing market likely to be affected when a new business moves into town, increasing job availability?
• According to Texas law, what is required of sellers of single-family residential properties?
• What is the term for unlawful possession after the expiration of a lease?
• Can Sarah force Robert to sell his home if she is only 17 years old?
• What is the main necessity for a valid contract in real estate?
• What is a special flood hazard area?
• In what type of property-related situation does a fiduciary duty conflict with obedience?
• In an exclusive right-to-sell agreement, what happens if the seller finds a buyer during the listing term?
• What is the primary purpose of an option fee in real estate?
• Why might Jasmine's sales agent application have been denied?
• Gloria paid her landlord $5,000 to have the option to purchase her leased cottage. What is this payment called?
• To be legally binding, what must a real estate purchase agreement include according to the statute of frauds?
• In a contract, consideration is best described as?
• What typically happens after a federal fair housing complaint is made?
• What is the general purpose of the Americans with Disabilities Act?
• What does the term 'lis pendens' refer to?
• What happens to the title of the property after the death of a life tenant with remainder interest?
• What does it mean if a property is listed as "as-is"?
• In which circumstance can agency be legally terminated?
• What is an origination fee in the context of a home loan?
• What concept might Trisha's assertion for compensation in a real estate transaction be based on?
• Which of the following describes a manufactured home?
• What type of legal description includes the name of a principal meridian?
• In what scenario can real estate advertising be misleading?
• Which form of co-ownership would Greg and Caitlin likely choose to ensure protection against one spouse selling the house without consent?
• Which survey system is also known as the Public Land Survey System (PLSS)?
• How many forms of ID are required when appearing for your Texas licensing exam?
• Who is required to sign the TREC Seller's Disclosure Notice?
• Which statement is true regarding Jameson, the on-site manager of an apartment property in Texas?
• If a party to a contract lacks legal capacity, who has the right to void the contract?
• What occurs when offer and acceptance has taken place?
• In Texas, what could be a consequence of not adhering to the fair housing laws?
• Which party can initiate a claim for damages resulting from a fair housing violation in Texas?
• What type of information is included in HMDA data?
• Which statement is true regarding Carl, a sales agent working under a broker?
• What is the consequence of not maintaining the required coverage under a co-insurance clause?
• What is the main point of the statute of frauds?
• Which type of value is typically found on the MLS?
• What term describes a specific, divided portion of property created during co-ownership termination?
• Which of the following is true regarding legal life estates?
• What is a unilateral contract?
• When assigned by the broker to represent one party in an in-house transaction, a real estate licensee is acting as what type of agent?
• What does PITI stand for in real estate?
• Which of the following expenses of home ownership may be eligible for a tax deduction?
• What action creates a land trust according to the scenario described?
• Which leasehold estate allows either party to terminate the lease with notice?
• What role does the title insurance play in a real estate transaction?
• Which of the following best describes a “lease option” agreement?
• Which of the following best describes a right-of-way agent?
• What is an estate/inheritance lien?
• What is the required passing grade for a real estate professional taking the broker exam in Texas?
• What happens if there is a conflict in property boundaries between two parties?
• Which source of law provides a way to implement and enforce laws, establish illegal practices, and penalties for violations?
• In the context of real estate, what capacity is Emilia acting in when she negotiates between both parties?
• In which scenario does a licensee have a disclosable ownership interest in a property?
• Which type of housing allows for regular mortgage financing?
• Is earnest money required to have a binding contract in a purchase offer?
• In a trust, who is responsible for ensuring the terms are carried out?
• What type of trust can help Julian and Clara avoid probate for their real estate holdings?
• Which law's Title VIII prohibits discrimination in housing transactions?
• What defines a special agent in real estate?
• What does the term "severalty" refer to in the context of real estate ownership?
• What does the CAN-SPAM Act of 2003 regulate?
• What is a requirement for homeowners regarding property tax payments?
• Which of the following statements about limited liability companies (LLCs) and limited liability partnerships (LLPs) is accurate?
• How many members of the ESAC committee are designated as public, non-licensee representatives?
• Under a land trust, the owner directs a what to hold title to the real estate?
• Which of the following best describes the duty of disclosure in a real estate transaction?
• How many lawyers does the governor appoint to the Broker-Lawyer Committee in Texas?
• Which organizational structure can a real estate agent utilize while working under a broker?
• What is one main benefit of using an MLS for real estate agents?
• What action can licensees take regarding signs placed on properties?
• Under Texas law, what must a sales agent disclose to all parties involved in a transaction?