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Real Estate Licensing Exam Practice Questions and Answers, Exams of Advanced Education

The University of Texas at AustinAdvanced Education

A set of practice questions and answers related to real estate licensing in texas. It covers topics such as state agency responsibilities, disclosure laws, agent ethics, and legal requirements for real estate transactions. The questions are designed to help individuals preparing for the texas real estate licensing exam to test their knowledge and understanding of key concepts and regulations. Updated for 2025, this resource offers verified solutions and is rated a+ for accuracy and relevance, making it a valuable tool for exam preparation and review. It includes questions on topics such as the texas real estate commission (trec), agency relationships, contract law, and ethical conduct, providing a comprehensive overview of the material covered in the licensing exam.

Typology: Exams

2024/2025

Available from 11/24/2025

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TREE PRACTICE QUESTIONS AND
ANSWERS WITH VERIFIED SOLUTIONS
100% CORRECT RATED A+ NEWLY
UPDATED 2025
What state agency is responsible for the licensing of real estate appraisers in
Texas?
(a) Texas Real Estate Commission (TREC)
(b) Texas Department of Licensing and Regulation (TDLR)
(c) Texas Appraiser Licensing and Certification Board (TALCB) ✔✔
(d) Texas Association of Appraisers
If there is a latent structural defect and the Seller’s Disclosure Notice is NOT
given prior to the contract signing, what right does the buyer have?
(a) Sue for damages after closing
(b) Request a price reduction
(c) Require repairs before closing
(d) Terminate the contract for any reason within seven days ✔✔
Texas state agency disclosure laws specifically require agents to:
(a) Provide a copy of the sales contract to all parties
(b) Disclose the type of agency you have with your client ✔✔
(c) File agency agreements with the county
(d) Share the commission details with buyers
Can a Texas sales agent legally maintain a trust account?
(a) Yes, if supervised by a broker
(b) Yes, if it is a joint account with the broker
(c) No, only a Texas broker can maintain a trust account ✔✔
(d) Only if approved by TREC
Jean has listed his home with broker Dawn. If he asks her for legal advice,
what should Dawn do?
(a) Give advice based on her experience
(b) Refer him to her legal team
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Download Real Estate Licensing Exam Practice Questions and Answers and more Exams Advanced Education in PDF only on Docsity!

TREE PRACTICE QUESTIONS AND

ANSWERS WITH VERIFIED SOLUTIONS

100% CORRECT RATED A+ NEWLY

UPDATED 2025

What state agency is responsible for the licensing of real estate appraisers in Texas? (a) Texas Real Estate Commission (TREC) (b) Texas Department of Licensing and Regulation (TDLR) (c) Texas Appraiser Licensing and Certification Board (TALCB) ✔✔ (d) Texas Association of Appraisers If there is a latent structural defect and the Seller’s Disclosure Notice is NOT given prior to the contract signing, what right does the buyer have? (a) Sue for damages after closing (b) Request a price reduction (c) Require repairs before closing (d) Terminate the contract for any reason within seven days ✔✔ Texas state agency disclosure laws specifically require agents to: (a) Provide a copy of the sales contract to all parties (b) Disclose the type of agency you have with your client ✔✔ (c) File agency agreements with the county (d) Share the commission details with buyers Can a Texas sales agent legally maintain a trust account? (a) Yes, if supervised by a broker (b) Yes, if it is a joint account with the broker (c) No, only a Texas broker can maintain a trust account ✔✔ (d) Only if approved by TREC Jean has listed his home with broker Dawn. If he asks her for legal advice, what should Dawn do? (a) Give advice based on her experience (b) Refer him to her legal team

(c) Tell him to check online resources (d) Decline to give legal advice unless she is also a licensed attorney ✔✔ Which of the following statements about the Texas Real Estate Commission is NOT true? - ANSWER✔✔The Commission can initiate an investigation on the basis of an anonymous complaint. Cold calling in Texas is - ANSWER✔✔Legal with an active real estate license. Which of the following would result in the TREC revoking a licensee's license? - ANSWER✔✔Pleading guilty or being found guilty of a felony in which includes fraud. The purpose of the Real Estate Recovery Trust Account is to enable - ANSWER✔✔people to get recourse of uncollected judgement against licensees. Which of the following is NOT an active Law or Act in Texas? The Inspector Act Texas Real Estate License Act The Residential Service Company Act The Texas Transfer of Rights and Ownership Act - ANSWER✔✔The Texas Transfer of Rights and Ownership Act No action for judgment, which results in an order for collection from the real estate recovery trust account, shall be started later than: - ANSWER✔✔2 years Jimmy is selling his house. Pam is buying it. Which of the following cannot draft a sales contract? - ANSWER✔✔Either one of their agents - The Texas Real Estate Commission prohibits a license holder from using a sales contract drafted by themselves or another licensee. The only type of sales contracts that can be used are ones that a licensed attorney drafts; or one that either buyer or seller draws up themselves. A licensee that draws up a contractual agreement for another party is in violation of TRELA and is guilty of the Unauthorized Practice of Law. The Canons of Professional Ethics include: - ANSWER✔✔fidelity, integrity, and competency.

interest in real property cannot be drafted by agents or brokers. This goes for deeds, deeds of trust, notes and wills. Which Canon of Professional Ethic requires that the licensee employ prudence and caution in the discharge of his or her duties to avoid misrepresentation? - ANSWER✔✔Integrity - When you hear misrepresentation this is in reference to integrity. The real estate broker or sales agents special obligation to employ prudence and caution in the discharge of his or her duties to avoid misrepresentation is integrity. Under no circumstances can an unlicensed office personnel do the following: Host open houses Set appointments to show a listing Assist in arranging financing - ANSWER✔✔Under no circumstances can an unlicensed office personnel host open houses. Unlicensed assistants can set appointments to show a listing. Under the general rules of the state, it is permissible for an assistant to call a homeowner and schedule an appointment for the broker to bring a potential buyer to see the home. It is also permissible for an unlicensed assistant to assist in arranging financing; however, great care must be taken that the person acts solely in an administrative capacity. Which of the following would be considered commingling? - ANSWER✔✔A real estate agent depositing her clients earnest money into her brokerage's account. - Commingling is when a licensee mixes funds held in care for a client with their own funds. What type of property requires the Texas Seller's Disclosure of Property Condition? - ANSWER✔✔Single Family Residential Homes - The Texas Seller's Disclosure of Property Condition is required by sellers of previously occupied single family residences. Tina wants to sell her home. She hires Billy to do so. She tells Billy that her home is free from any structural defects. After a few weeks Billy finds a buyer named Keaton. Billy assures Keaton that a home is free from any structural defects. Later that week it turns out the home has a very leaky basement. Who is liable for misrepresentation? - ANSWER✔✔Tina and Billy would both be liable. Remember, the agent represents the principal and in this case it's Tina. Billy's representation of Tina and her property is legally binding so they would both be

liable. It's up to Billy to do his due diligence and it's up to Tina to tell the truth, making them both liable. Members of the Texas Real Estate Commission are appointed by - ANSWER✔✔The Governor - The Texas Real Estate Commission is composed of nine members, each of whom shall be appointed by the Governor. How long must all Texas brokers maintain their trust account records? - ANSWER✔✔4 years - All Texas brokers must maintain all documentation pertaining to trust account records for four years from the date the document is created or received. Any penalties collected for a violation by a Texas real estate broker or salesperson is deposited in: - ANSWER✔✔The penalty collected for a violation by a Texas real estate broker or salesperson is deposited in the Texas Real Estate Recovery Trust Account. By Texas state law when a real estate licensee receives an offer they must - ANSWER✔✔present the offer as soon as possible. - The TREC rules call for immediate presentation. All written offers should be presented to the property owner as quickly as it is reasonably possible. No real estate licensee has the right to withhold an offer from a property owner. Victor calls his attorney and friend Isaac to help him with a difficult transaction. Only through the assistance and legal advice from Issac does he close the transaction. Victor wants to make it up to Isaac. Which of the following is NOT allowed? - ANSWER✔✔Splitting the commission check with Isaac - Splitting the commission check with Isaac would not be allowed. A licensee is not permitted to divide a commission or fee with anyone that is not a licensed real estate broker or salesperson. He may however with his own personal money buy Isaac a gift card, give him cash, or of course pay him his normal fee. Under agency law in Texas dual agency is - ANSWER✔✔illegal. Under agency law in Texas dual agency is illegal. A license holder may not represent both principals as a dual agent under the revisions to TRELA. Which document must be presented to both buyers and sellers entering into an agency relationship with a broker under Texas Law? - ANSWER✔✔An Information About Brokers Services Form - The Texas Real Estate Commission