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National Exam - Practice of Real Estate Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the legal duty of a real estate agent to treat all parties honestly and fairly?✔✔ Fair dealing
What must an agent do before disclosing confidential client information?✔✔ Obtain written consent from the client
What type of document must be signed before an agent can legally represent a buyer?✔✔ A buyer representation agreement
What is the term for when a real estate agent acts in the best interest of the client?✔✔ Fiduciary duty
When must an agent provide the Information About Brokerage Services (IABS) form in Texas?✔✔ At the first substantive communication
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What should an agent do if a conflict of interest arises in a transaction?✔✔ Disclose the conflict immediately and seek written consent
What is the term for practicing real estate without a license?✔✔ Unauthorized practice
What must be included in every advertisement by a licensee?✔✔ The broker’s name
Who is ultimately responsible for the actions of a real estate salesperson?✔✔ The sponsoring broker
If a client refuses to disclose a known defect, what must the agent do?✔✔ Withdraw from representation or disclose the defect
What is the legal term for a false statement that harms someone's reputation?✔✔ Defamation
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When working with a buyer and seller in the same transaction, what is required?✔✔ Written consent for intermediary or dual agency
What is one way to avoid misrepresentation during a showing?✔✔ Stick to facts and avoid giving opinions about material features
What should a licensee do if they receive an offer while another offer is being negotiated?✔✔ Present all offers promptly and objectively
If a client wants to accept an offer verbally, what should the agent advise?✔✔ That it must be in writing to be legally binding
What is considered a material fact in real estate?✔✔ Any fact that could influence a buyer's decision
How long must a real estate agent keep transaction records in Texas?✔✔ Four years
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