Texas Real Estate Exam Prep From

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Texas Real Estate Exam Prep (From PearsonVUE and & Champions National Exam Prep) Questions and Answers | Latest Version | 2025/2026 | Correct & Verified

The primary purpose of the Texas Real Estate Commission (TREC) is to:

• Set interest rates for real estate transactions
• Approve home loan applications

✔✔C. Regulate real estate licensees in Texas

• Provide tax assessments for property owners

Which of the following is true about a broker's duties to a seller in Texas?

• The broker has a fiduciary duty only after the contract is signed

✔✔B. The broker has a fiduciary duty to act in the best interest of the seller at all times

• The broker is only responsible for advertising the property
• The broker has a duty to represent both the buyer and the seller

What is a requirement for a property owner to qualify for homestead protection in Texas? 1 / 4

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✔✔A. The property must be the owner's primary residence

• The property must be located in a rural area
• The property must be appraised annually
• The owner must not have any mortgage obligations

Which of the following is an example of an encumbrance?✔✔A. Easement

• Property tax
• General warranty deed
• Title insurance

What is the maximum amount that a Texas real estate licensee can receive as compensation from more than one party in a transaction?✔✔A. The licensee can only receive compensation from their sponsoring broker

• The licensee may only receive compensation from the buyer
• The licensee may receive compensation from the buyer and seller with written consent
• The licensee may receive compensation from any party without restriction
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If a seller fails to disclose a material defect on a property, the buyer may:

• Be required to pay for repairs
• Cancel the sale and receive a refund of the deposit

✔✔C. File a lawsuit for damages caused by nondisclosure

• Not have any legal recourse since the property was sold "as is"

What type of listing agreement gives the broker the exclusive right to sell the property and guarantees commission regardless of who finds the buyer?✔✔A. Exclusive right to sell

• Open listing
• Exclusive agency listing
• Net listing

In Texas, when is a real estate contract considered legally binding?✔✔A. When both parties have signed the contract

• When the buyer submits a deposit
• When the listing agent presents an offer to the seller
• When the buyer receives approval for financing 3 / 4

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Which of the following is a characteristic of a joint tenancy?✔✔A. Right of survivorship

• Ability to be passed on to heirs
• Ownership by individuals with unequal shares
• Property must be located within the same state

What is the primary purpose of the Truth in Lending Act (TILA)?

• To provide information on the environmental impact of property transactions

✔✔B. To ensure borrowers receive clear and accurate information about credit terms

• To regulate the cost of property insurance
• To provide property disclosures regarding previous owners

Which of the following is considered a fiduciary duty of an agent to a client?

• Competence
• Loyalty
• Discrimination

✔✔D. All of the above except discrimination

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