Texas Real Estate Broker Practice Exam
154 free Texas Real Estate Broker practice questions with answers and explanations.
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The Texas Real Estate Broker exam is administered by the Texas Real Estate Commission, with 145 scored questions and a time limit of 4 hours.
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These are original study questions written from published exam objectives—not recalled, copied, or confidential live-exam items. Always confirm current coverage with the official sources linked on this page.
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Property Ownership
45 questions1. Why does a purchaser record a deed in the public land records after closing?
- A. Recording converts a quitclaim deed into a general warranty deed
- B. Recording gives constructive notice to the world and establishes priority
- C. Recording is what makes delivery and acceptance unnecessary
- D. Recording is required before the deed can be signed by the grantor
Show answer & explanation
Answer: B
Recording the deed in the public land records gives constructive notice to the world and establishes priority. It does not change the type of deed or replace the delivery-and-acceptance requirement.2. A property owner grants an oil and gas company the right to enter the land, drill wells, and extract minerals for a set period in exchange for royalty payments. What best describes this arrangement?
- A. A mineral lease
- B. A life estate
- C. An easement appurtenant
- D. A deed restriction
Show answer & explanation
Answer: A
A mineral lease grants an operator the right to explore, drill, and extract oil, gas, or other minerals from land in exchange for royalty or other payments to the mineral owner, without transferring outright ownership of the mineral estate itself. This is a contractual and possessory right distinct from an easement, which involves a right of use rather than extraction of resources.3. A homeowner wants to hold the strongest, most complete ownership interest the law recognizes — one that can be freely passed to heirs and sold without limitation. Which estate best describes this interest?
- A. A life estate
- B. A fee simple absolute
- C. An easement appurtenant
- D. A leasehold estate held under a quitclaim
Show answer & explanation
Answer: B
The fee simple absolute is the highest and most complete form of ownership, freely inheritable and transferable. A life estate is limited to a person's lifetime, and an easement is only a right to use another's land, not ownership.4. Grantor conveys property "to Alice for the duration of her life, then to Bob." What best describes Bob's position?
- A. Bob holds a fee simple absolute that vests immediately
- B. Bob is a remainderman who takes title after Alice's death
- C. Bob holds only an easement appurtenant over the parcel
- D. Bob's interest is void because life estates cannot name a future taker
Show answer & explanation
Answer: B
A life estate lasts for the duration of a named person's life, after which title passes to a remainderman or reverts to the grantor. Because the grant names Bob to take after Alice's life, Bob is the remainderman.5. A seller signs a document intended to transfer real property but never physically hands it over to the buyer and the buyer never accepts it. Under the requirements for a valid deed, what is the effect?
- A. The deed is fully effective once signed by the grantor
- B. The deed is ineffective because delivery and acceptance are required
- C. The deed is effective only if it omits a legal description
- D. The deed is effective because recording substitutes for delivery
Show answer & explanation
Answer: B
A deed must be in writing, name the parties, contain a legal description, include a granting clause, and be signed by the grantor and delivered and accepted to be effective. Without delivery and acceptance, the deed does not operate to convey title.6. Which element is NOT among the requirements for a deed to be effective?
- A. A legal description of the property
- B. A granting clause (words of conveyance)
- C. The signature of the grantee
- D. Delivery and acceptance
Show answer & explanation
Answer: C
A deed must be in writing, name the parties, contain a legal description, include a granting clause, and be signed by the grantor and delivered and accepted. The requirement is the grantor's signature — the grantee's signature is not listed among the requirements.7. A cautious buyer wants the broadest possible protection of title, with the grantor standing behind the title against defects arising at any point in the chain of ownership. Which deed should the buyer insist upon?
- A. A quitclaim deed
- B. A general warranty deed
- C. A deed containing no granting clause
- D. A life estate deed
Show answer & explanation
Answer: B
A general warranty deed offers the greatest protection because the grantor warrants title against all defects arising at any time. A quitclaim deed, by contrast, carries no warranties.8. An owner is uncertain whether she holds any interest at all in a parcel but is willing to transfer whatever interest she may have, without promising anything about the title. Which instrument fits this situation?
- A. A general warranty deed
- B. A quitclaim deed
- C. A deed with covenants of seisin and warranty forever
- D. An easement appurtenant
Show answer & explanation
Answer: B
A quitclaim deed carries no warranties and conveys only whatever interest the grantor may have, making it appropriate when the grantor makes no assurances about the extent of her title.9. A property has three liens: a mortgage recorded in 2019, a mechanic's lien recorded in 2021, and an unpaid property tax lien assessed in 2023. Which generally has priority?
- A. The 2019 mortgage, because it was recorded first
- B. The 2021 mechanic's lien, because it is more recent than the mortgage
- C. The 2023 property tax lien, regardless of when the others were recorded
- D. All three share priority equally by date
Show answer & explanation
Answer: C
Property tax liens and special assessments generally take priority over all other liens regardless of when they were recorded, so the 2023 tax lien outranks both the earlier mortgage and the mechanic's lien.10. Two adjoining parcels share a driveway easement: Parcel A benefits from the right to cross Parcel B. In easement-appurtenant terms, how are the parcels described?
- A. Parcel A is the servient tenement; Parcel B is the dominant tenement
- B. Parcel A is the dominant tenement; Parcel B is the servient tenement
- C. Both parcels are servient tenements
- D. Neither parcel is burdened because the easement does not run with the land
Show answer & explanation
Answer: B
An easement appurtenant benefits an adjoining dominant tenement and burdens the servient tenement, and it runs with the land. The benefited parcel (A) is the dominant tenement; the burdened parcel (B) is the servient tenement.11. A dominant-tenement owner sells her parcel to a new buyer. What generally happens to an existing easement appurtenant that benefits that parcel?
- A. It is extinguished automatically upon the sale
- B. It runs with the land and continues to benefit the new owner
- C. It converts into a property tax lien on the servient tenement
- D. It must be re-created by a general warranty deed each time the land is sold
Show answer & explanation
Answer: B
An easement appurtenant benefits the dominant tenement, burdens the servient tenement, and runs with the land. Because it runs with the land, it passes to the new owner of the dominant parcel rather than terminating on sale.12. While reviewing forms of ownership, a candidate encounters the term 'bundle of rights.' Which description best captures this concept?
- A. A set of distinct rights an owner holds, such as the rights to possess, use, exclude, and transfer the property.
- B. A single indivisible right that cannot be separated or transferred.
- C. A physical bundle of documents kept at the county office.
- D. A limit on how many properties one person may ever own.
Show answer & explanation
Answer: A
The 'bundle of rights' concept describes ownership as a collection of separable rights (to possess, use, exclude, transfer, and enjoy). This is a conceptual definition, reasoned within the topic rather than grounded in a number.13. In the Property Ownership section, a client asks about an interest that gives one party the right to cross a neighbor's land to reach a road. Which term best describes this interest?
- A. An easement.
- B. A fee simple absolute.
- C. A personal-property chattel.
- D. A mortgage note.
Show answer & explanation
Answer: A
A right to use another's land for a specific purpose, such as crossing it for access, is an easement. This is a definitional/conceptual point reasoned within the topic rather than tied to a specific figure.14. A study group debates the passing standard for the National portion of the exam. Which statement correctly reflects the confirmed passing requirement?
- A. A candidate must answer 60 questions correctly on the National examination.
- B. A candidate must answer all 145 questions correctly.
- C. A candidate must answer 240 questions correctly.
- D. There is no passing threshold; the exam is ungraded.
Show answer & explanation
Answer: A
The confirmed passing standard requires answering 60 questions correctly on the National examination. The other options misuse the total question count, the time limit, or deny that a threshold exists.15. A candidate preparing for the licensing exam wants to know how the Property Ownership section fits into the overall test. Based only on the confirmed exam structure, which statement is accurate?
- A. The Property Ownership items are drawn from a total pool of 145 scored questions on the exam.
- B. The Property Ownership items are the only scored questions on the exam.
- C. The exam contains no scored questions at all.
- D. The exam contains exactly 60 scored questions in total.
Show answer & explanation
Answer: A
The confirmed exam structure specifies 145 scored questions in total; Property Ownership items are a subset of that pool, not the entire exam and not an unscored section.16. In the Property Ownership section, a broker explains the difference between real property and personal property to a new agent. Which characterization best distinguishes the two?
- A. Personal property can never be converted into real property under any circumstances.
- B. Real property is always movable, while personal property is always affixed to land.
- C. Real property includes land and things permanently affixed to it, while personal property is movable and not permanently attached.
- D. Real and personal property are legally identical in every respect.
Show answer & explanation
Answer: C
Real property is conventionally understood as land and permanent improvements/fixtures, whereas personal property is movable and unattached. This is a conceptual distinction, not a numeric fact, so it is reasoned rather than tied to a specific figure.17. An agent studying the Property Ownership outline reviews the concept of a fixture. Which factor is most commonly used to determine whether an item has become a fixture?
- A. The color of the item regardless of how it is attached.
- B. Whether the item was purchased with cash or credit.
- C. The brand name printed on the item.
- D. The manner and permanence of the item's attachment to the real property.
Show answer & explanation
Answer: D
Whether an item has become a fixture typically turns on the method and permanence of its attachment (along with related tests such as adaptation and intent). This is conceptual reasoning within the topic, not a grounded numeric fact.18. A candidate compares an estate held indefinitely with full ownership rights against a right to use property for the duration of someone's life. Which pairing correctly labels these two interests?
- A. A fee simple estate versus a life estate.
- B. A leasehold versus an easement.
- C. A lien versus an encumbrance.
- D. A fixture versus a chattel.
Show answer & explanation
Answer: A
An estate held indefinitely with the fullest ownership rights is a fee simple estate, while an interest measured by the duration of a person's life is a life estate. This is a conceptual comparison within the topic, not a numeric assertion.19. A candidate wants to confirm that meeting the National passing standard does NOT depend on getting every question right. Given the confirmed figures, which statement is consistent with the exam design?
- A. A candidate can pass the National examination by answering 60 questions correctly, which is fewer than the 145 scored questions on the exam.
- B. A candidate must answer all 145 scored questions correctly to pass the National examination.
- C. The passing requirement of 60 correct exceeds the total of 145 scored questions.
- D. The passing requirement and the total question count are the same number.
Show answer & explanation
Answer: A
The confirmed National passing standard is 60 correct, and the confirmed total is 145 scored questions; since 60 is fewer than 145, a perfect score is not required. The other options contradict one or both confirmed figures.20. A legal description of a parcel begins at a specific monument, then describes the boundary using directions and distances such as north 100 feet, then east 50 feet, eventually returning to the starting point. What type of legal description is this?
- A. Lot and block
- B. Government survey (rectangular survey)
- C. Metes and bounds
- D. Assessor's parcel number
Show answer & explanation
Answer: C
A metes and bounds description identifies a parcel's boundaries by starting at a defined point of beginning and describing a sequence of directions and distances until the boundary closes back on itself, forming the parcel's outline. This method is commonly used for irregularly shaped parcels, unlike a lot and block description, which instead references a recorded subdivision plat map.21. A married couple in a common-law property state takes title together with rights of survivorship available only to married spouses, and neither spouse can convey their share without the other's consent. What is this ownership form called?
- A. Tenancy by the entirety
- B. Tenancy in common
- C. Community property
- D. Severalty
Show answer & explanation
Answer: A
Tenancy by the entirety is a special form of co-ownership available only to married couples in states that recognize it, providing a right of survivorship and requiring both spouses' consent to convey or encumber the property. This differs from tenancy in common, where each co-owner may freely transfer their individual share without the other owner's approval.22. A single individual purchases a home and takes title in their name alone, with no co-owners. What is this form of ownership called?
- A. Joint tenancy
- B. Severalty
- C. Tenancy in common
- D. Community property
Show answer & explanation
Answer: B
Ownership in severalty means the property is held by a single individual or a single legal entity, with no co-owners sharing title, distinguishing it from any of the concurrent ownership forms that involve two or more owners. The term can be confusing because it describes sole, undivided ownership rather than a divided or severed interest.23. A subdivision's recorded declaration limits homeowners to single-story houses and prohibits fences over four feet tall. What best describes these limitations?
- A. Zoning ordinances
- B. Deed restrictions (restrictive covenants)
- C. Easements
- D. Encroachments
Show answer & explanation
Answer: B
Deed restrictions, also called restrictive covenants, are private limitations placed on land use by a developer or association and recorded against the property, binding current and future owners within the subdivision. Unlike zoning ordinances, which are public regulations imposed by a government body, deed restrictions are privately created and enforced, often by a homeowners' association.24. A buyer discovers that a neighbor's fence has been built two feet onto the buyer's property line without permission. What term describes this situation?
- A. Easement
- B. Riparian right
- C. Encroachment
- D. Littoral right
Show answer & explanation
Answer: C
An encroachment occurs when a structure, such as a fence, building, or driveway, extends onto a neighboring owner's land without permission or legal right, creating a potential boundary dispute. This differs from an easement, which is a legally granted right to use another's land rather than an unauthorized physical intrusion onto it.25. A property borders a flowing river, and the owner's rights to use the water for reasonable purposes are governed by the property's location along the waterway. What category of rights does this describe?
- A. Littoral rights
- B. Subsurface rights
- C. Air rights
- D. Riparian rights
Show answer & explanation
Answer: D
Riparian rights apply to owners of land bordering flowing water, such as rivers and streams, and generally allow reasonable use of the water while preserving the rights of other riparian owners along the same waterway. Littoral rights, by contrast, apply to land bordering larger, non-flowing bodies of water such as lakes, seas, or oceans.26. A married couple purchases a home together in Texas during their marriage using earnings from both spouses' jobs. Absent a separate property agreement, how is this property most likely classified?
- A. Community property owned equally by both spouses
- B. Separate property of whichever spouse's name appears on the deed
- C. Tenancy in common with unequal shares
- D. Joint tenancy with an automatic right of survivorship
Show answer & explanation
Answer: A
Texas is a community property state, so property acquired during marriage through either spouse's labor or earnings is presumed community property owned equally, unless it qualifies as separate property such as a gift, inheritance, or property owned before marriage. Simply naming one spouse on the deed does not override this community property presumption absent a valid agreement.27. A landowner grants a neighbor the right to walk across a specific path on the landowner's property to reach a lake, and this right is recorded and tied to the neighbor's parcel rather than to the neighbor personally. What type of interest has been created?
- A. License
- B. Easement appurtenant
- C. Easement in gross
- D. Encroachment
Show answer & explanation
Answer: B
Because the right benefits the neighbor's land, the dominant estate, rather than benefiting a specific individual, and burdens the landowner's parcel, the servient estate, it is an easement appurtenant, which runs with the land and transfers automatically with ownership. A personal permission is revocable and does not attach to the land itself, so it would not survive a sale of either parcel.28. A rancher owns land in West Texas and later sells the surface rights to a farmer while keeping all rights to oil, gas, and other minerals beneath the land. What best describes the rancher's remaining interest?
- A. A leasehold estate
- B. An easement in gross
- C. A mineral estate severed from the surface estate
- D. A life estate pur autre vie
Show answer & explanation
Answer: C
Texas law allows the mineral estate to be severed from the surface estate, meaning ownership of oil, gas, and minerals can be sold, retained, or transferred separately from ownership of the land's surface, creating two distinct estates. The rancher who kept the minerals holds a mineral estate even though a different party now owns the surface.29. A homeowner in Texas occupies a house and lot as their primary residence. Which statement best describes the legal protection this property receives under Texas homestead law?
- A. The homestead is fully exempt from every debt the owner ever incurs, without exception
- B. Homestead protection applies only to rural properties, never to homes within a city
- C. Homestead status must be renewed with the county every year to remain effective
- D. The homestead receives protection from most general creditors, though it is not protected against obligations such as purchase-money loans, tax liens, or home equity loans
Show answer & explanation
Answer: D
Texas homestead law shields a qualifying home from forced sale by most unsecured general creditors, but the protection is not absolute; it does not defeat valid liens for the purchase price, property taxes, home improvement or equity loans, or other constitutionally recognized exceptions. It also applies automatically upon occupancy and does not require any annual renewal filing.30. A landowner conveys a life estate in a parcel to a friend but does not name anyone else to receive the property afterward, so the property will return to the landowner or the landowner's heirs when the life estate ends. What is the landowner's retained interest called?
- A. Reversion
- B. Remainder
- C. Fee simple determinable
- D. Easement
Show answer & explanation
Answer: A
When a grantor conveys a life estate without naming a third party to take the property afterward, the grantor retains a reversion, meaning the property automatically returns to the grantor or the grantor's heirs once the life estate terminates. This differs from a remainder, which arises only when the grantor names a separate third party to receive the property after the life estate ends.31. Two unrelated investors purchase a building together and each wants to be able to sell, mortgage, or will their share independently, with no automatic right of survivorship between them. Which form of ownership fits their goals?
- A. Tenancy in common
- B. Community property
- C. Tenancy by the entirety
- D. Joint tenancy
Show answer & explanation
Answer: A
Tenancy in common allows each co-owner to hold an individually transferable and inheritable interest, without any right of survivorship, which matches investors who want independent control over their respective shares. Joint tenancy, by contrast, includes a right of survivorship that would automatically pass a deceased owner's share to the surviving co-owner rather than to the deceased owner's chosen heirs.32. A developer wants to sell individual airspace units within a building while the land, structure, and common areas remain jointly owned by all unit owners through an association. Which form of ownership does this describe?
- A. Cooperative ownership
- B. Tenancy in common
- C. Condominium ownership
- D. Timeshare ownership
Show answer & explanation
Answer: C
In condominium ownership, each buyer receives fee simple title to an individual unit, often defined by airspace, along with an undivided interest in the common elements, which are shared and typically managed by an owners' association. A cooperative differs because residents own shares in a corporation that holds title to the entire building, not direct title to their unit.33. A neighbor has openly, continuously, and without permission used a strip of another's land as if it were their own for many years, meeting all statutory requirements. What legal doctrine might allow the neighbor to eventually obtain ownership of that strip?
- A. Eminent domain
- B. Escheat
- C. Estoppel by deed
- D. Adverse possession
Show answer & explanation
Answer: D
Adverse possession allows a person who occupies land openly, continuously, exclusively, and without the true owner's permission for a statutorily defined period to potentially gain legal title to that land. Eminent domain, by contrast, is a government power to take private property for public use with just compensation, and is unrelated to a private party's long-term occupancy claim.34. A commercial tenant installs custom display shelving and specialized equipment necessary for their retail business, attaching some pieces to the walls of the leased space. When the lease ends, who generally has the right to remove these items?
- A. The tenant, because items installed for conducting a trade or business generally remain the tenant's personal property and may be removed, provided the tenant repairs any resulting damage
- B. The landlord, because anything physically attached to a wall automatically becomes part of the real property
- C. Neither party may remove the items once physically attached, under any circumstances
- D. The county assessor decides ownership of any attached business equipment
Show answer & explanation
Answer: A
Trade fixtures installed by a commercial tenant to conduct their business are treated as an exception to the usual fixture rule and generally remain the tenant's personal property, removable at the end of the lease as long as the tenant repairs any damage caused by removal. This differs from typical fixtures installed by an owner, which become part of the real property and transfer with it.35. A landlocked parcel has no direct access to a public road except by crossing a neighboring landowner's property. A court grants the landlocked owner the right to cross that neighboring land. What is this type of easement called?
- A. Prescriptive easement
- B. Easement by necessity
- C. Easement in gross
- D. License
Show answer & explanation
Answer: B
An easement by necessity is created when a parcel becomes landlocked and has no other reasonable access to a public road, allowing a court to grant crossing rights over an adjoining parcel to prevent the land from being unusable. This differs from a prescriptive easement, which arises from long-term open and adverse use over time rather than strict necessity of access.36. A grantor conveys a life estate to a person, with the measuring life being a third party rather than the life tenant themselves. What is this type of life estate called?
- A. Fee simple defeasible
- B. Estate for years
- C. Estate pur autre vie
- D. Remainder estate
Show answer & explanation
Answer: C
An estate pur autre vie is a life estate measured by the lifespan of someone other than the person holding the estate, meaning the life tenant's rights end when that third party dies rather than when the life tenant dies. This distinguishes it from an ordinary life estate, which is measured by the life tenant's own lifetime.37. A property owner dies without a will and without any identifiable heirs. Under what legal doctrine does the property ultimately pass to the state?
- A. Eminent domain
- B. Police power
- C. Adverse possession
- D. Escheat
Show answer & explanation
Answer: D
Escheat is the legal process by which property reverts to the state when an owner dies intestate, meaning without a will, and no legal heirs can be found to claim the property, ensuring the land does not remain ownerless. This is distinct from eminent domain, which involves the government taking property for public use with compensation to a known owner.38. A city rezones a section of town to prohibit new commercial construction in a residential area, which restricts how affected owners can develop their land. Which government power does this action exercise?
- A. Police power
- B. Escheat
- C. Eminent domain
- D. Taxation
Show answer & explanation
Answer: A
Police power allows government entities to regulate land use, including zoning, to protect public health, safety, and general welfare, even though it restricts what a private owner may do with their property. Eminent domain, by contrast, involves the government physically taking title to property and requires payment of just compensation to the owner.39. A homeowner association enforces a rule requiring all owners in a planned community to pay dues that fund maintenance of common areas like parks and pools, and refusal to pay can result in a lien against the owner's property. What best explains the legal basis for this lien?
- A. It arises automatically from government tax law
- B. It is a form of eminent domain
- C. It is a mechanic's lien for construction work performed on the property
- D. It arises from the recorded restrictive covenants and association bylaws the owner agreed to by purchasing in the community
Show answer & explanation
Answer: D
When an owner purchases property in a community governed by recorded covenants, conditions, and restrictions, the owner becomes contractually bound to the association's assessment and lien provisions, which allow the association to place a lien for unpaid dues. This is a private contractual mechanism, not a government tax or a construction-related mechanic's lien.40. A title search reveals that a previous owner granted a utility company the right to maintain power lines across a portion of the land, benefiting the utility company generally rather than any particular neighboring parcel. What kind of easement is this?
- A. Easement appurtenant
- B. Easement by necessity
- C. Easement in gross
- D. Prescriptive easement
Show answer & explanation
Answer: C
An easement in gross benefits a specific person or entity, such as a utility company, rather than benefiting an adjoining parcel of land, and therefore does not require a dominant estate. Easements in gross are common for utility lines, pipelines, and similar commercial uses, and they generally do not transfer automatically with a sale of neighboring land.41. A buyer wants to purchase the exclusive right to use a vacation condominium for two specific weeks each year, while other buyers hold rights to different weeks in the same unit. What form of ownership does this describe?
- A. Tenancy in common
- B. Cooperative ownership
- C. Life estate
- D. Timeshare ownership
Show answer & explanation
Answer: D
Timeshare ownership divides the use of a single property, often a vacation unit, among multiple owners who each hold rights to occupy it during specified, recurring time periods. This differs from tenancy in common, where co-owners generally hold undivided, simultaneous rights to the whole property rather than scheduled, exclusive-use periods.42. A commercial building sits directly on the boundary line between two separately owned lots, with both owners sharing responsibility for maintaining the shared wall. What is this arrangement called?
- A. Party wall easement
- B. License
- C. Riparian right
- D. Leasehold estate
Show answer & explanation
Answer: A
A party wall easement arises when a wall straddles the boundary line between two properties and is used and maintained jointly by both adjoining owners, each holding rights and responsibilities in the shared structure. This is distinct from a license, which is a revocable personal permission rather than a mutual property right tied to the land itself.43. An owner transfers property to their son, but with the condition that if alcohol is ever sold on the premises, the property reverts back to the owner. What kind of estate has the son received?
- A. Fee simple absolute
- B. Fee simple determinable
- C. Life estate
- D. Leasehold estate
Show answer & explanation
Answer: B
A fee simple determinable automatically ends and reverts to the grantor, or the grantor's estate, the moment a stated condition occurs, such as alcohol being sold on the premises in this example, without requiring further legal action. This differs from a fee simple absolute, which grants complete, unconditional ownership with no built-in limitation triggering automatic forfeiture.44. A buyer is comparing real property to personal property before closing on a home. Which characteristic most accurately distinguishes real property from personal property?
- A. Real property is always more expensive than personal property
- B. Real property includes land and things permanently attached to it, while personal property is generally movable and not permanently affixed
- C. Personal property cannot legally be sold or transferred
- D. Real property can only be owned by corporations
Show answer & explanation
Answer: B
Real property encompasses land, the airspace above it, the ground below it, and anything permanently attached such as buildings and fixtures, while personal property, or chattel, refers to movable items not permanently affixed to the land. This distinction matters at closing because only real property automatically conveys with the deed unless personal property is separately addressed in the contract.45. A seller wants to convey only whatever interest they might have in a parcel, without making any promise or warranty about the quality or validity of that title. Which conveyance instrument accomplishes this?
- A. General warranty deed
- B. Special warranty deed
- C. Quitclaim deed
- D. Grant deed
Show answer & explanation
Answer: C
A quitclaim deed conveys whatever interest the grantor currently holds in a property, if any, without any warranty or guarantee about the validity or quality of that title, making it useful for clearing clouds on title or transfers between related parties. This differs from a general warranty deed, which provides the strongest protection and warrants against title defects from any point in the property's history.
Contracts
30 questions46. A prospective buyer signs and hands over a written offer to purchase a house. Before the seller communicates any acceptance, the buyer telephones the seller to withdraw the offer. Is the withdrawal effective?
- A. Yes, because an offer may be revoked at any time before acceptance is communicated.
- B. No, because a written offer becomes irrevocable once it is delivered.
- C. No, because only the seller may terminate a pending offer.
- D. Yes, but only if the buyer forfeits the earnest money as liquidated damages.
Show answer & explanation
Answer: A
An offer may be revoked any time before acceptance is communicated, so the buyer's phone call withdrawing the offer before the seller communicated acceptance is effective. Choices B and C misstate the rule, and D confuses revocation with liquidated damages on a buyer's default.47. A 16-year-old minor signs a contract to purchase a condominium. Which term best describes this contract's status?
- A. Void, because it never existed legally.
- B. Voidable, because a party such as a minor may disaffirm it.
- C. Unenforceable, because it was not in writing.
- D. Valid and binding, because consideration was exchanged.
Show answer & explanation
Answer: B
A contract that a party may disaffirm, such as one signed by a minor, is voidable. It is not void (a contract lacking a required element) nor merely unenforceable (valid but not enforceable in court).48. A seller signs a listing agreement with a broker but retains the right to sell the property personally without owing a commission if the seller, not the broker, finds the buyer. What type of listing is this?
- A. Exclusive right to sell listing
- B. Open listing
- C. Exclusive agency listing
- D. Net listing
Show answer & explanation
Answer: C
An exclusive agency listing gives one broker the primary right to market and sell the property and earn a commission if any other party procures the buyer, but it specifically preserves the seller's right to find their own buyer and pay no commission at all. This differs from an exclusive right to sell listing, which entitles the broker to a commission even if the seller finds the buyer.49. A seller signs agreements with three different brokers, agreeing to pay a commission only to whichever broker actually produces a ready, willing, and able buyer. What type of listing arrangement is this?
- A. Exclusive right to sell listing
- B. Exclusive agency listing
- C. Net listing
- D. Open listing
Show answer & explanation
Answer: D
An open listing allows a seller to work simultaneously with multiple brokers, owing a commission only to whichever broker is the procuring cause of a ready, willing, and able buyer, with no commission owed to the others. This differs from exclusive listings, which restrict the seller to working with a single broker for the term of the agreement.50. A seller receives a buyer's offer and returns it with the price raised by $5,000, leaving all other terms unchanged. Under contract law, what is the legal effect of the seller's response?
- A. It is a valid acceptance because the essential terms remain the same.
- B. It is a counteroffer that rejects and extinguishes the buyer's original offer.
- C. It is a contingency that suspends the buyer's duty to perform.
- D. It creates a voidable contract the buyer may later disaffirm.
Show answer & explanation
Answer: B
Acceptance must be unqualified, so a material change to the terms operates as a counteroffer that rejects and extinguishes the original offer. Raising the price is a material change, so no contract forms on the original terms.51. Which combination lists the essential elements required for a valid real estate contract?
- A. Mutual assent, consideration, legally competent parties, and a lawful object.
- B. Offer, earnest money, recording, and delivery.
- C. Consideration, a granting clause, acknowledgment, and possession.
- D. Mutual assent, a contingency, a title search, and closing.
Show answer & explanation
Answer: A
A valid real estate contract requires mutual assent, consideration, legally competent parties, and a lawful object. The other choices mix in elements of deeds or the closing process that are not required for contract validity.52. An oral agreement to sell a parcel of land is fully agreed to by both parties, but nothing is put in writing. The seller then refuses to proceed. Why can the buyer likely not enforce the agreement in court?
- A. Because the buyer failed to record the agreement in the public land records.
- B. Because land-sale agreements require specific performance to form.
- C. Because the Statute of Frauds requires contracts for the sale of real estate to be in writing and signed by the party to be charged.
- D. Because oral contracts are automatically void from the outset.
Show answer & explanation
Answer: C
The Statute of Frauds requires contracts for the sale of real estate to be in writing and signed by the party to be charged to be enforceable. An unwritten land-sale agreement is unenforceable — not void — so it exists but cannot be enforced in court.53. A purchase agreement states that the buyer's obligation to close depends on the buyer securing mortgage financing. What is this provision called?
- A. A liquidated damages clause.
- B. A contingency.
- C. A counteroffer.
- D. An acceleration clause.
Show answer & explanation
Answer: B
Contingencies are conditions that must be satisfied before a party is obligated to perform, and financing is one of the common contingencies along with inspection and appraisal. The other choices name unrelated contract or loan provisions.54. After the parties sign a binding purchase contract, the seller changes her mind and refuses to convey the property. Which remedy is available to the buyer specifically because land is considered unique?
- A. Retention of the earnest money as liquidated damages.
- B. Disaffirmance of the contract.
- C. Specific performance to compel the conveyance.
- D. Revocation of the original offer.
Show answer & explanation
Answer: C
Specific performance compels conveyance because land is deemed unique, making it an available remedy for a buyer when a seller refuses to perform. Liquidated damages instead let a seller retain earnest money on a buyer's default.55. A buyer defaults on a signed purchase contract that contains a liquidated damages clause. What is the seller's agreed remedy under that clause?
- A. The seller may compel the buyer to complete the purchase through specific performance.
- B. The seller may retain the earnest money as the agreed measure of the buyer's default.
- C. The seller must return the earnest money and re-list the property.
- D. The seller may declare the entire purchase price immediately due.
Show answer & explanation
Answer: B
Liquidated damages clauses let the seller retain the earnest money as the agreed measure of the buyer's default. Specific performance is the remedy tied to land's uniqueness, not the function of a liquidated damages clause.56. A tenant and landlord orally agree to a lease running for a term of three years. Must this lease be in writing to be enforceable?
- A. Yes, because the Statute of Frauds requires leases longer than one year to be in writing and signed by the party to be charged.
- B. No, because leases are exempt from the Statute of Frauds.
- C. No, because only sales of real estate must be in writing.
- D. Yes, but only because the lease must also be recorded.
Show answer & explanation
Answer: A
The Statute of Frauds requires contracts for the sale of real estate, and leases longer than one year, to be in writing and signed by the party to be charged to be enforceable. A three-year lease exceeds one year, so it must be written.57. A buyer emails an offer, and the seller replies, "I accept, but only if you also purchase the detached workshop for an additional sum." Why does no contract form on the original terms?
- A. Because acceptance must be unqualified, and adding a material term operates as a counteroffer that rejects the original offer.
- B. Because an emailed offer cannot satisfy the requirement of mutual assent.
- C. Because the seller may revoke the offer at any time before acceptance.
- D. Because the added term is a contingency that automatically forms the contract.
Show answer & explanation
Answer: A
Acceptance must be unqualified, so any material change to the terms operates as a counteroffer that rejects and extinguishes the original offer. Conditioning acceptance on buying the workshop for more money is a material change, so no contract forms on the original terms; mutual assent is one of the required elements of a valid contract.58. A signed real estate contract includes a clause stating that the written agreement represents the entire understanding between the parties, superseding any prior oral promises. What is this clause called?
- A. Contingency clause
- B. Merger (integration) clause
- C. Habendum clause
- D. Defeasance clause
Show answer & explanation
Answer: B
A merger, or integration, clause states that the written contract represents the complete and final agreement between the parties, which generally prevents either party from later relying on prior oral promises or side agreements not included in the writing. This helps ensure that only the terms actually written into the signed document are enforceable between the parties.59. A buyer and seller sign a purchase contract, but later both agree to change the closing date by signing a supplemental document that modifies just that one term. What is this document called?
- A. Novation
- B. Assignment
- C. Addendum (amendment)
- D. Rescission
Show answer & explanation
Answer: C
An addendum, or amendment, is a supplemental document signed by both parties that modifies or adds to specific terms of an existing contract, such as changing the closing date, while leaving the rest of the original agreement intact. This is different from a novation, which substitutes an entirely new party into the agreement rather than simply changing a term.60. A seller and buyer mutually agree to cancel their purchase contract entirely and return each party to their original position before the contract was signed. What is this action called?
- A. Novation
- B. Assignment
- C. Liquidated damages
- D. Rescission
Show answer & explanation
Answer: D
Rescission cancels a contract entirely and, as much as possible, restores both parties to the position they were in before the contract was signed, undoing the agreement rather than modifying or transferring it. This differs from a novation, which replaces one of the original parties with a new party while the underlying obligations continue.61. A contract for the sale of land is fully signed but neither party has yet performed their obligations. This contract is most accurately classified as:
- A. An executed contract
- B. An executory contract
- C. A voidable contract
- D. An unenforceable contract
Show answer & explanation
Answer: B
An executory contract is one in which obligations remain to be performed. Once all parties have fully performed, the contract becomes executed.62. A verbal agreement to sell a parcel of real estate is reached over the phone, but nothing is put in writing. Under the Statute of Frauds, this agreement is:
- A. Automatically valid because both parties agreed
- B. Generally unenforceable because contracts for the sale of real estate must be in writing
- C. Void because verbal agreements are illegal
- D. Enforceable only if witnessed by a third party
Show answer & explanation
Answer: B
The Statute of Frauds requires that contracts for the sale of an interest in real estate be in writing and signed to be enforceable. A purely oral agreement is generally unenforceable.63. A purchase contract provides that if the buyer defaults, the seller may keep the earnest money as a pre-agreed amount of compensation. This provision is an example of:
- A. Liquidated damages
- B. Punitive damages
- C. An assignment
- D. A contingency
Show answer & explanation
Answer: A
A liquidated damages clause sets in advance the amount one party recovers if the other breaches. Keeping the earnest money as agreed compensation is a common example in real estate contracts.64. Two parties agree to discharge their existing contract and substitute a new party in place of one of the original parties, with everyone's consent. This substitution is called:
- A. Novation
- B. Reformation
- C. Assignment
- D. Ratification
Show answer & explanation
Answer: A
Novation substitutes a new contract or a new party for an existing one, with the consent of all parties, and releases the original obligor. Assignment transfers rights but does not by itself release the assignor.65. A purchase agreement states that the buyer's obligation to close is conditioned on obtaining mortgage financing within a stated period. This conditional provision is best described as:
- A. A contingency
- B. A counteroffer
- C. An addendum releasing all obligations
- D. A liquidated damages clause
Show answer & explanation
Answer: A
A contingency is a condition that must be satisfied for the contract to proceed. If a financing contingency is not met within the stated time, the buyer may typically withdraw without penalty.66. A buyer transfers all of their rights and interest under an existing purchase contract to a third party. This transfer of contractual rights is known as:
- A. Rescission
- B. Assignment
- C. Revocation
- D. Acceptance
Show answer & explanation
Answer: B
Assignment is the transfer of one's rights and interest under a contract to another party. Unless prohibited by the contract or law, many real estate contracts may be assigned, though the assignor may remain liable absent a novation.67. A buyer and seller of residential real property want their signed purchase agreement to be legally enforceable. Which element is essential to form a valid contract between them?
- A. A mutual agreement (offer and acceptance) supported by consideration
- B. Notarization of both signatures before a licensed notary
- C. Recording of the agreement in the county property records
- D. Approval of the terms by a licensed real estate broker
Show answer & explanation
Answer: A
A valid contract requires mutual assent (offer and acceptance), consideration, capable parties, and a legal purpose. Notarization, recording, and broker approval are not elements of contract formation.68. A seller receives a written offer and returns it to the buyer with the price increased and the closing date changed, then signs it. In contract terms, the seller's response is best described as:
- A. An acceptance that binds both parties immediately
- B. A counteroffer that terminates the original offer
- C. A ratification of the buyer's original terms
- D. An option that keeps the original offer open
Show answer & explanation
Answer: B
A response that changes material terms is a counteroffer. It rejects and terminates the original offer, and the original offeror becomes the new offeree who may accept or reject.69. A minor who has not reached the age of majority signs a contract to purchase real property. As to the minor, the contract is generally:
- A. Void from the outset
- B. Voidable at the option of the minor
- C. Fully binding on both parties
- D. Enforceable only by the minor's parents
Show answer & explanation
Answer: B
A party lacking full contractual capacity, such as a minor, may generally disaffirm the contract. This makes the contract voidable at that party's option rather than automatically void.70. After signing a purchase agreement, a buyer refuses to close without any legal justification. The seller's ability to sue to force the buyer to complete the purchase is a remedy known as:
- A. Novation
- B. Specific performance
- C. Rescission
- D. Liquidated damages
Show answer & explanation
Answer: B
Specific performance is an equitable remedy compelling a party to carry out the exact terms of the contract, often available in real estate because land is considered unique.71. A buyer defaults on a signed purchase contract with no liquidated damages clause. The seller sues for the actual financial harm caused by the default. What is this remedy called?
- A. Compensatory (actual) damages
- B. Specific performance
- C. Rescission
- D. Novation
Show answer & explanation
Answer: A
Compensatory, or actual, damages are intended to reimburse the non-breaching party for the real financial loss caused by the other party's default, such as the difference between the contract price and the price the seller eventually obtains from a new buyer. This differs from specific performance, which forces the breaching party to complete the transaction rather than paying money damages.72. A purchase contract requires the buyer to obtain a satisfactory professional appraisal at or above the contract price before the buyer is obligated to close. What is this type of provision called?
- A. Financing contingency
- B. Merger clause
- C. Appraisal contingency
- D. Estoppel clause
Show answer & explanation
Answer: C
An appraisal contingency makes the buyer's obligation to close conditional on the property appraising at or above the agreed contract price, giving the buyer an option to renegotiate or cancel if the appraisal comes in low. This is a distinct condition from a financing contingency, which instead focuses on the buyer's ability to actually obtain loan approval.73. A buyer and seller sign a document where the buyer promises to pay a stated price and the seller promises to convey title, with both parties bound to perform. What type of contract is this?
- A. Unilateral contract
- B. Option contract
- C. Executed contract
- D. Bilateral contract
Show answer & explanation
Answer: D
A bilateral contract involves mutual promises, where each party is bound to perform an obligation, such as the buyer's promise to pay and the seller's promise to convey title, both created at the moment the agreement is signed. A unilateral contract, by contrast, involves only one party making a binding promise, with the other party free to act or not act.74. A property owner allows a landscaping company to continue mowing the lawn each week and paying the invoice each time, without ever signing a formal written agreement, based on a consistent pattern of conduct and mutual expectation of payment. What type of contract has most likely been formed?
- A. An implied contract, formed by the parties' conduct rather than express written or spoken terms
- B. A void contract, because nothing was ever put in writing
- C. A unilateral contract requiring only one party's promise
- D. An executory contract that cannot yet be enforced
Show answer & explanation
Answer: A
An implied contract arises from the conduct and circumstances of the parties, such as a repeated pattern of services rendered and payment accepted, rather than from express written or spoken terms, and it is generally enforceable like any other contract. It is not automatically void simply because the agreement was never reduced to writing, since many service arrangements do not require a signed document to be binding.75. A seller signs a listing agreement giving one broker the exclusive right to earn a commission no matter who ultimately produces the buyer, including the seller. What type of listing is this?
- A. Open listing
- B. Exclusive right to sell listing
- C. Exclusive agency listing
- D. Net listing
Show answer & explanation
Answer: B
An exclusive right to sell listing entitles the listing broker to a commission regardless of who actually finds the buyer, even if the seller personally locates the buyer without any broker involvement. This differs from an exclusive agency listing, under which the seller retains the right to sell the property personally and avoid paying any commission.
Financing
12 questions76. A lender charges a borrower 2 discount points on a $150,000 loan to lower the interest rate offered. Based on the standard meaning of a discount point, what is the dollar cost of these points?
- A. $1,500
- B. $300
- C. $3,000
- D. $15,000
Show answer & explanation
Answer: C
Each discount point equals one percent of the loan amount, so two discount points on a $150,000 loan equal two percent of $150,000, which is $3,000, paid upfront by the borrower in exchange for a reduced interest rate over the life of the loan. Points are a standard tool lenders use to let borrowers trade a larger upfront cost for a lower ongoing interest rate.77. A borrower obtains a real estate loan. Which pair of instruments is created in a typical mortgage loan transaction?
- A. A promissory note evidencing the debt and a mortgage or deed of trust pledging the property as security
- B. A general warranty deed and a quitclaim deed
- C. A Loan Estimate and a life estate
- D. A listing agreement and an easement appurtenant
Show answer & explanation
Answer: A
A mortgage loan involves a promissory note that evidences the debt and the borrower's promise to pay, together with a mortgage or deed of trust that pledges the property as security. The other pairs describe conveyance or unrelated instruments, not the debt-and-security structure of a loan.78. In a state that follows the lien theory of mortgages, who holds legal title to the property while the loan is being repaid?
- A. The county recorder holds title in trust
- B. Title is split equally between borrower and lender
- C. The lender holds legal title until the debt is paid
- D. The borrower holds title and the lender holds only a lien
Show answer & explanation
Answer: D
In a lien-theory state the borrower retains title and the lender holds only a lien against the property. This contrasts with a title-theory arrangement, where the lender holds legal title until the debt is paid.79. After a borrower misses several payments, the lender wishes to demand the full remaining loan balance at once rather than only the overdue installments. Which mortgage clause permits this?
- A. The liquidated damages clause
- B. The confidentiality clause
- C. The substitution clause
- D. The acceleration clause
Show answer & explanation
Answer: D
The acceleration clause lets the lender declare the entire balance due upon default. The other options do not govern a lender's right to call the whole debt.80. A lender charges 2 discount points on a $200,000 loan. Based on the definition of a discount point, what is the dollar cost of those points, and what is their purpose?
- A. $4,000, paid as prepaid interest to buy down the interest rate
- B. $2,000, refunded to the borrower at closing
- C. $20,000, applied to the loan principal
- D. $400, used to pay the appraisal fee
Show answer & explanation
Answer: A
One discount point equals one percent of the loan amount, so two points on a $200,000 loan is 2% × $200,000 = $4,000. Discount points are prepaid interest that buys down the interest rate. The dollar figure is derived by applying the stated definition to the loan amount given in the question.81. An eligible veteran wants a loan program that is guaranteed by the government and can permit a purchase with no down payment. Which loan type fits?
- A. A VA loan
- B. A conventional loan
- C. An FHA loan
- D. A quitclaim loan
Show answer & explanation
Answer: A
VA loans are guaranteed for eligible veterans and can permit no down payment. Conventional loans are not government-backed, and FHA loans are insured by the FHA rather than guaranteed for veterans.82. Which statement correctly distinguishes conventional and FHA financing?
- A. Conventional loans are not government-backed, while FHA loans are insured by the Federal Housing Administration and allow low down payments
- B. Conventional loans are insured by the FHA, while FHA loans are guaranteed for veterans
- C. FHA loans are not government-backed, while conventional loans require no down payment
- D. Both conventional and FHA loans are guaranteed by the VA
Show answer & explanation
Answer: A
Conventional loans are not government-backed, whereas FHA loans are insured by the Federal Housing Administration and allow low down payments. The remaining choices scramble which program is backed by which agency.83. A buyer makes a 10% down payment on a conventional loan. Based on the standard threshold, what is the likely consequence?
- A. Private mortgage insurance will typically be required
- B. The loan automatically converts to a VA loan
- C. No mortgage insurance can ever be required on a conventional loan
- D. The lender must hold legal title until payoff
Show answer & explanation
Answer: A
Private mortgage insurance is typically required on conventional loans when the down payment is less than twenty percent. A 10% down payment is below that threshold, so PMI would typically be required.84. A settlement agent is asked whether a lender may pay an agent an unearned fee simply for referring borrowers. Which federal law addresses this, and what does it require?
- A. RESPA, which prohibits kickbacks and unearned referral fees and requires the Loan Estimate and Closing Disclosure
- B. TILA, which permits referral fees but caps them at one point
- C. The Statute of Frauds, which requires all referral fees to be in writing
- D. The Civil Rights Act of 1866, which exempts referral fees from disclosure
Show answer & explanation
Answer: A
RESPA governs federally related mortgage loans, prohibits kickbacks and unearned referral fees, and requires the Loan Estimate and Closing Disclosure. The other laws address credit-cost disclosure, writing requirements for contracts, and race discrimination, respectively.85. So that borrowers can compare the true cost of credit, which disclosures does the Truth in Lending Act, implemented by Regulation Z, require?
- A. The seller's original purchase price and property tax history
- B. The listing broker's commission split
- C. The annual percentage rate (APR) and the total finance charge
- D. The capitalization rate and net operating income
Show answer & explanation
Answer: C
TILA, implemented by Regulation Z, requires disclosure of the annual percentage rate (APR) and the total finance charge so borrowers can compare the true cost of credit. The other items are not the disclosures TILA mandates.86. A homeowner refinances the mortgage on their principal residence. Under TILA and Regulation Z, what protection may apply to certain such refinances?
- A. A three-day right of rescission
- B. A mandatory acceleration of the old loan
- C. An automatic waiver of the APR disclosure
- D. A guarantee of no down payment
Show answer & explanation
Answer: A
TILA, implemented by Regulation Z, grants a three-day right of rescission on certain refinances of a principal residence. The other options are not protections created by TILA for such refinances.87. Which of the following correctly pairs an exam attribute with its stated value?
- A. Scored questions — 145
- B. Fee — 145 minutes
- C. National passing count — 240
- D. Duration — $39
Show answer & explanation
Answer: A
Only 'Scored questions — 145' pairs an attribute with its correct stated value. The other options deliberately mismatch the fee, duration, and passing count with figures belonging to different attributes.
State Law
13 questions88. A licensee agrees to represent a seller and, several months after the closing, is asked by a nosy acquaintance to reveal the lowest price the former seller would have accepted. Under the agent's fiduciary duties, what is the licensee's obligation?
- A. The duty ended at closing, so the licensee may share the figure freely.
- B. The licensee must keep the information confidential because that duty survives termination of the agency.
- C. The licensee may disclose it only if the acquaintance is also a client.
- D. The licensee must disclose it to promote honesty and fair dealing.
Show answer & explanation
Answer: B
The duty of confidentiality survives the termination of the agency and forbids revealing information that would harm the principal's bargaining position, such as the lowest acceptable price.89. A broker holds earnest money on behalf of a client. To comply with the accounting duty, where must the broker place those funds?
- A. In the broker's operating account, so long as records are kept.
- B. In a separate trust or escrow account, never commingled with the broker's own funds.
- C. In any interest-bearing account chosen by the broker.
- D. In the seller's personal account until closing.
Show answer & explanation
Answer: B
The accounting duty requires depositing client funds in a separate trust or escrow account and never commingling them with the broker's own funds.90. A seller responds to a buyer's offer by returning the document with the price raised by $10,000 and the closing date moved. Legally, what is the effect of the seller's response on the buyer's original offer?
- A. It accepts the offer with minor modifications that the buyer must honor.
- B. It operates as a counteroffer that rejects and extinguishes the original offer.
- C. It has no effect until the buyer signs again.
- D. It creates a binding contract at the original price.
Show answer & explanation
Answer: B
Acceptance must be unqualified, so any material change to the terms operates as a counteroffer that rejects and extinguishes the original offer.91. A grantor wants to give a buyer the greatest possible protection of title, warranting against all defects arising at any time. Which deed should be used?
- A. A quitclaim deed.
- B. A general warranty deed.
- C. A life estate deed.
- D. A deed of trust.
Show answer & explanation
Answer: B
A general warranty deed offers the greatest protection because the grantor warrants title against all defects arising at any time; a quitclaim deed, by contrast, carries no warranties and conveys only whatever interest the grantor may have.92. A parcel has an unpaid property tax lien recorded years after a first mortgage was recorded against the same land. When the property is sold at auction, how do these liens rank in priority?
- A. The mortgage takes priority because it was recorded first.
- B. The two liens share priority equally regardless of type.
- C. The property tax lien takes priority over the mortgage regardless of when it was recorded.
- D. Priority is decided by the size of each debt.
Show answer & explanation
Answer: C
Property tax liens and special assessments generally take priority over all other liens regardless of when they were recorded, so the later-recorded tax lien outranks the earlier mortgage.93. A property manager is engaged to lease units, collect rent, hire vendors, and handle day-to-day operations for an apartment complex over an indefinite period. How is this agent best classified?
- A. A special agent, because leasing is a single type of transaction.
- B. A general agent, because the manager may bind the principal in a range of matters.
- C. A dual agent, because the manager serves both owner and tenants.
- D. A customer, because no fiduciary duties are owed.
Show answer & explanation
Answer: B
A general agent may bind the principal in a range of matters, and a property manager is given as the classic example; a special agent, by contrast, has limited authority for a single transaction.94. A buyer submits a written offer. Before the seller communicates any acceptance, the buyer calls to withdraw the offer. Is the withdrawal effective?
- A. No, because a written offer cannot be withdrawn once submitted.
- B. No, because the seller was still considering the offer.
- C. Yes, because an offer may be revoked any time before acceptance is communicated.
- D. Yes, but only if the buyer forfeits the earnest money.
Show answer & explanation
Answer: C
An offer may be revoked at any time before acceptance is communicated to the offeror, so the buyer's withdrawal is effective.95. Two neighbors shook hands on an oral agreement to sell a vacant lot, but nothing was ever written down. When the seller backs out, why can the buyer not enforce the deal in court?
- A. Because the parties were not legally competent.
- B. Because a vacant lot cannot be sold without a survey.
- C. Because oral contracts always lack consideration.
- D. Because the Statute of Frauds requires contracts for the sale of real estate to be in writing and signed by the party to be charged.
Show answer & explanation
Answer: D
The Statute of Frauds requires that contracts for the sale of real estate be in writing and signed by the party to be charged to be enforceable, so a purely oral land-sale agreement is unenforceable.96. A buyer defaults on an otherwise valid purchase agreement. The seller refuses to sue for money and instead asks the court to force the buyer to complete the purchase. Which remedy is the seller pursuing, and why is it available for real estate?
- A. Liquidated damages, because the earnest money is forfeited.
- B. Rescission, because the contract can be undone.
- C. Specific performance, because land is deemed unique.
- D. An acceleration remedy, because the balance is due.
Show answer & explanation
Answer: C
Specific performance compels conveyance because land is deemed unique, making monetary damages an inadequate substitute.97. An agent discourages a family from viewing homes in one neighborhood and steers them toward another based on the family's national origin. Which prohibited practice under the federal Fair Housing Act does this describe?
- A. Blockbusting.
- B. Redlining.
- C. Steering.
- D. A lawful client preference, since national origin is not protected.
Show answer & explanation
Answer: C
Steering is directing buyers toward or away from neighborhoods based on a protected class, and national origin is one of the seven protected classes under the federal Fair Housing Act.98. A candidate paid the examination fee and did not pass on the first attempt. To sit for the exam a second time, how much must the candidate pay again, assuming the standard published fee applies to each attempt?
- A. $0 — retakes are free
- B. $19
- C. $39
- D. $78
Show answer & explanation
Answer: C
The published fee to sit for the examination is $39, so a subsequent attempt at the standard fee is again $39. Applying the same published fee to a repeat attempt is an inference from the stated fee.99. Which of the following statements correctly pairs an examination parameter with its published value?
- A. The examination is allotted 145 minutes.
- B. The examination fee is $39.
- C. The examination contains 240 scored questions.
- D. The National passing standard is 145 correct questions.
Show answer & explanation
Answer: B
Only choice B matches a published value: the examination fee is $39. The other choices misstate the question count, time allotment, and passing standard.100. On the National portion of the examination, what is the minimum number of questions a candidate must answer correctly to pass?
- A. 45 questions
- B. 75 questions
- C. 53 questions
- D. 60 questions
Show answer & explanation
Answer: D
To pass the National examination, a candidate must answer 60 questions correctly.
Showing 100 of 154 questions.
2026 statistics
Key facts: Texas Real Estate Broker exam
- Questions
- 145
- Time limit
- 4h
- Passing score
- 60 national + 38 state (raw correct)
- Exam fee
- $58
- Governing body
- Texas Real Estate Commission
This free Texas Real Estate Broker practice test has 154 original questions written to Texas Real Estate Commission's official content outline, last checked against it on September 7, 2026, 100 of them listed on this page and the rest loaded by the drill. Every question shows a worked explanation, and nothing here requires a signup.
The questions are grouped under four outline areas: Property Ownership, Contracts, Financing and State Law.
As of 2026, the Texas Real Estate Broker exam fee is $58.
How the Texas Real Estate Broker practice bank covers the outline
154 questions across 4 outline areas — the same areas the page's sections use.
Counts are the live question bank, grouped by the outline area each question was written to.
Exam format and study resources
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Official sources
Primary documents used to verify the exam details shown on this page.
- Texas Real Estate Candidate Handbook, September 2026Pearson VUE / TRECpearsonvue.com
- Become an Individual Real Estate BrokerTexas Real Estate Commission (TREC)trec.texas.gov
- Texas Real Estate Licensure ExamsPearson VUEpearsonvue.com
- Welcome to TRECTexas Real Estate Commission (TREC)trec.texas.gov
- Texas Real Estate Content OutlinesPearson VUEpearsonvue.com
Last verified against the official exam content outline:
Frequently asked questions
Do these free practice questions match the real Texas broker exam?
They are written to mirror the style and topic coverage of the actual exam, including agency relationships, contracts, finance, fair housing, property ownership, and valuation. Question wording, answer-choice structure, and difficulty are modeled on the multiple-choice format used on the real test. They are practice items, not leaked exam content, so treat them as training rather than a preview of exact questions.
How many practice questions should I do, and how often?
Short, frequent sessions beat occasional marathons: aim for a focused set of questions most days rather than one huge session per week. Since the real exam has 145 questions in 240 minutes, work up to at least one full-length timed set before test day so the pacing feels familiar. Keep drilling until your accuracy is consistently strong across every topic, not just your favorites.
What is the best way to use the answer explanations?
Read the explanation for every question, including the ones you got right, because a lucky guess is a gap in disguise. When you miss a question, identify the exact rule you misapplied, then look for that same concept in later questions to confirm the fix stuck. Keep a running list of concepts you have missed twice; those belong at the top of your review pile.
How do I know when I'm ready for the real exam?
You are close to ready when you can complete timed practice sets comfortably within pace and your scores are consistently well above the passing threshold across every topic area, not just overall. On the real exam you need at least 60 correct on the national portion, so give yourself a comfortable margin above that level in practice. Consistency over several sessions matters more than one good day.
Are these Texas broker practice questions really free?
Yes, the practice questions are completely free and you do not need to create an account or hand over an email address to use them. You can start a set immediately, see explanations for every answer, and come back as often as you like. There is no paywall blocking the questions themselves.