Texas Real Estate Sales Agent Practice Exam.
Free practice test — 132 quality-checked questions, instant feedback.

1. Which statement about the three primary loan categories is accurate?

• A. Conventional loans are not government-backed, FHA loans are insured by the FHA with low down payments, and VA loans are guaranteed for eligible veterans and can permit no down payment
• B. VA loans are insured by the FHA, and conventional loans permit no down payment
• C. FHA loans are guaranteed only for veterans, and conventional loans require government backing
• D. Conventional loans are insured by the FHA, and VA loans always require twenty percent down

2. Which law governs federally related mortgage loans, prohibits kickbacks and unearned referral fees, and requires the Loan Estimate and Closing Disclosure?

• A. The Real Estate Settlement Procedures Act (RESPA)
• B. The federal Fair Housing Act
• C. The Civil Rights Act of 1866
• D. The Truth in Lending Act (TILA)

3. A homeowner refinances the loan on her principal residence. Under TILA, what protection does she have immediately after closing?

• A. An automatic reduction of her APR after three payments
• B. A waiver of all closing disclosures
• C. A thirty-day money-back guarantee on the appraisal fee
• D. A three-day right of rescission on certain refinances of a principal residence

4. An agent learns during a listing that the seller would accept far less than the asking price because the seller is going through a divorce. After the listing agreement terminates, may the agent reveal this to a prospective buyer?

• A. No, but only until the property is relisted with a different broker
• B. Yes, because the agency relationship has ended and all duties expire with it
• C. Yes, provided the agent first obtains the buyer's written consent
• D. No, because confidentiality survives termination and forbids revealing information that would harm the principal's bargaining position

5. A licensee wishes to represent both the buyer and the seller in the same transaction. Under what circumstances is this permitted?

• A. Only if the seller alone consents in writing
• B. Whenever the transaction price exceeds fair market value
• C. Only with the informed written consent of both parties
• D. Never, under any circumstances

6. A seller receives an offer and responds by returning the document with a higher price and a changed closing date. In contract terms, what has the seller's response accomplished?

• A. It creates a binding option contract in favor of the buyer
• B. It accepts the offer, because a price is stated
• C. It operates as a counteroffer that rejects and extinguishes the original offer
• D. It has no legal effect until the buyer signs again

7. A buyer and seller reach an oral agreement for the sale of a parcel of land, but nothing is put in writing. If the seller refuses to proceed, why is the buyer unlikely to enforce the agreement?

• A. Because land sales require a general warranty deed at the offer stage
• B. Because oral agreements are automatically void from the outset
• C. Because oral agreements 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

8. A property has a recorded mortgage from 2018 and unpaid property taxes assessed in 2022. If the property is sold to satisfy debts, which claim generally takes priority?

• A. The property tax lien, because tax liens generally take priority over all other liens regardless of when they were recorded
• B. Whichever creditor demands payment first
• C. Neither, because both are extinguished by the sale
• D. The 2018 mortgage, because it was recorded first

9. An owner holds the surface rights to a parcel of land but has separately conveyed the rights to extract minerals beneath the surface to another party. This arrangement BEST illustrates which principle of property ownership?

• A. That surface owners always retain all subsurface rights regardless of any conveyance
• B. That the bundle of rights in land can be separated, so different parties may hold surface and subsurface rights
• C. That mineral rights can never be transferred apart from the surface
• D. That land ownership is a single indivisible right that cannot be split

10. A borrower chooses a loan whose interest rate and payment stay the same for the entire loan term, giving predictable monthly housing costs. What type of loan has the borrower selected?

• A. Graduated payment mortgage
• B. Fixed-rate mortgage
• C. Adjustable-rate mortgage
• D. Balloon mortgage

11. Two candidates each pay the Sales examination fee and sit for the exam. What is the total amount the two candidates pay in examination fees combined?

• A. $56
• B. $86
• C. $112
• D. $43

12. A candidate observes that the National passing threshold is a multiple of the State passing threshold. Exactly what multiple of the State threshold is the National threshold?

• A. 2.5 times
• B. 3 times
• C. 2 times
• D. 1.5 times

13. A candidate must clear both the National and State passing thresholds. Combining only the two published minimum-correct requirements, how many correct answers must the candidate achieve in total across both portions?

• A. 56 correct
• B. 96 correct
• C. 71 correct
• D. 84 correct

14. On the State portion of the examination, what is the minimum number of questions a candidate must answer correctly to pass?

• A. 28 questions
• B. 84 questions
• C. 43 questions
• D. 56 questions

15. A candidate correctly answered 55 questions on the National portion. Relative to the passing standard for that portion, this result is:

• A. One correct answer above the passing threshold
• B. One correct answer short of passing
• C. Exactly at the passing threshold
• D. Below the State threshold but above the National threshold

16. On the National portion of the Texas sales examination, what is the minimum number of questions a candidate must answer correctly to pass?

• A. 60 questions
• B. 56 questions
• C. 43 questions
• D. 28 questions

17. A candidate must clear both the National and State portions of the Texas sales exam. What is the minimum number of correct answers required on the State examination?

• A. 84 questions
• B. 56 questions
• C. 43 questions
• D. 28 questions

18. Before sitting for the exam, a candidate reviews the required fees. What is the fee for the Texas Sales examination?

• A. $43
• B. $28
• C. $56
• D. $240

19. A candidate answers exactly the minimum required number of questions correctly on BOTH the National and State portions of the Texas sales exam. What is the combined total of correct answers across the two portions at those minimum thresholds?

• A. 112 questions
• B. 56 questions
• C. 71 questions
• D. 84 questions

20. A form of property ownership grants an owner the fullest, most complete bundle of rights available, of potentially infinite duration, and is freely transferable and inheritable. Which characteristic BEST distinguishes this estate from a lesser estate?

• A. It conveys the most complete ownership interest, of indefinite duration, and passes to heirs
• B. It cannot be sold or mortgaged without government approval
• C. It grants only the right to use the property for a fixed number of years
• D. It automatically terminates on the owner's death

21. Two people take title to a property together with the right of survivorship, meaning that when one owner dies, that owner's interest passes automatically to the surviving co-owner rather than to the deceased owner's heirs. Which statement BEST describes the effect of the survivorship feature?

• A. The surviving co-owner automatically absorbs the deceased owner's interest, bypassing probate for that interest
• B. Each owner may will their share to a third party despite the survivorship feature
• C. The deceased owner's share is distributed to that owner's estate through probate
• D. The property is sold and the proceeds split among all heirs

22. A homeowner discovers that an item was permanently affixed to the land in a way that it is now legally treated as part of the real property rather than as personal property. Which factor is MOST commonly used to determine whether such an item has become part of the real property?

• A. Whether the item was manufactured domestically
• B. The method and permanence of attachment, along with the intent of the party who attached it
• C. The original purchase price of the item
• D. The color and style of the item

23. After a borrower misses several payments, the lender demands the full remaining loan balance at once rather than just the past-due installments. Which mortgage provision permits this?

• A. The defeasance clause
• B. The alienation clause
• C. The subordination clause
• D. The acceleration clause

24. What is the examination fee for the Texas Sales examination?

• A. $28
• B. $60
• C. $43
• D. $56

25. A candidate must pass both the National and State examinations. What is the combined minimum number of correctly answered questions across both examinations?

• A. 56 questions
• B. 84 questions
• C. 96 questions
• D. 72 questions

26. A candidate wants to know whether the State examination passing standard is higher or lower than the National passing standard, in terms of the number of questions required correct. Which statement is accurate?

• A. The State standard is exactly double the National standard
• B. The two standards are identical
• C. The State standard is higher than the National standard
• D. The State standard is lower than the National standard

27. To pass, a candidate must answer a required number of items correctly on the National portion. What is that minimum number of correct answers?

• A. 43 questions
• B. 240 questions
• C. 56 questions
• D. 28 questions

28. An owner deeds property "to my brother for the duration of his life." The deed names no other party to take afterward. When the brother dies, what happens to the title?

• A. It converts into an easement appurtenant
• B. It is extinguished and the property escheats immediately
• C. It reverts to the grantor because no remainderman was named
• D. It automatically vests in the brother's heirs as fee simple

29. Two siblings each claim to have received the same parcel from their late parent. One received a quitclaim deed to the parcel; the parent, it turns out, held no interest in it at the time. What did the quitclaim deed convey to that sibling?

• A. Whatever interest the grantor actually had — here, nothing
• B. Full fee simple absolute, by operation of the deed
• C. A life estate for the sibling's life
• D. A general warranty of clear title

30. After receiving a valid deed, a purchaser promptly records it in the public land records. What is the primary legal effect of recording?

• A. It gives constructive notice to the world and establishes priority
• B. It eliminates the need for a granting clause
• C. It is required for the deed to be signed by the grantor
• D. It converts the fee simple into a life estate

31. The total number of questions a candidate must answer correctly to pass BOTH the National and State portions combined is best described as which of the following?

• A. The sum of 56 and 28
• B. The sum of 56 and 43
• C. The sum of 240 and 56
• D. The sum of 43 and 28

32. A candidate must answer a minimum number of items correctly on the National portion to pass it. What is that minimum number of correct answers?

• A. 28 questions
• B. 60 questions
• C. 43 questions
• D. 56 questions

33. A candidate answered exactly 56 items correctly on the National portion and exactly 28 items correctly on the State portion. Based solely on the stated passing thresholds, what is the outcome?

• A. Passed State only
• B. Passed both portions
• C. Failed both portions
• D. Passed National only

34. A prospective buyer emails a signed offer to purchase a home. Before the seller communicates any acceptance, the buyer sends a second email withdrawing the offer. Which statement best describes the buyer's ability to withdraw?

• A. The offer may be revoked only if the seller has not yet read it.
• B. The offer becomes irrevocable the moment the seller receives it.
• C. The offer cannot be withdrawn once it has been put in writing and signed.
• D. The offer may be revoked at any time before acceptance is communicated.

35. Which set of elements must all be present for a real estate contract to be valid?

• A. Offer, earnest money, a licensed broker, and recording.
• B. Mutual assent, consideration, legally competent parties, and a lawful object.
• C. Mutual assent, a title policy, delivery, and acceptance.
• D. Consideration, a contingency, a survey, and notarization.

36. A 16-year-old signs a purchase agreement to buy a condominium. Which term most accurately describes the resulting contract?

• A. Fully binding on the minor.
• B. Unenforceable.
• C. Void.
• D. Voidable.

37. A buyer proposes a change to the closing date and initials the change on the offer before returning it. Assuming the change is material, which best explains why no contract has yet formed?

• A. The Statute of Frauds bars any change to a written offer.
• B. An offer becomes irrevocable once written, so it cannot be altered.
• C. Because acceptance must be unqualified, the material change is a counteroffer, and a counteroffer extinguishes the original offer rather than accepting it.
• D. Consideration is missing, so no valid contract can exist.

38. A written lease for a term of two years is agreed to orally but never reduced to writing or signed. Under the Statute of Frauds, is this lease enforceable?

• A. Yes, because oral agreements on price are always binding.
• B. No, because leases longer than one year must be in writing and signed by the party to be charged.
• C. No, because a lease can never be enforced without recording.
• D. Yes, because leases are exempt from the Statute of Frauds.

39. A buyer using a conventional loan makes a down payment of only ten percent. What additional cost is she typically required to carry?

• A. A discount point equal to twenty percent of the loan
• B. An FHA guarantee fee
• C. A VA funding fee
• D. Private mortgage insurance, because her down payment is less than twenty percent

40. Under which statute and implementing regulation must a lender disclose the annual percentage rate (APR) and total finance charge so borrowers can compare the true cost of credit?

• A. The Truth in Lending Act, implemented by Regulation Z
• B. The Civil Rights Act of 1866
• C. The Fair Housing Act, implemented by Regulation B
• D. The Real Estate Settlement Procedures Act, implemented by Regulation X

41. A borrower wants to lower the interest rate on a new mortgage by paying cash up front at closing. Which financing tool accomplishes this, and how is each unit measured?

• A. A RESPA referral credit, equal to the lender's fee
• B. An acceleration payment, equal to the full loan balance
• C. Discount points, each equal to one percent of the loan amount, paid as prepaid interest to buy down the rate
• D. Private mortgage insurance, each unit equal to twenty percent of the loan

42. A broker deposits a buyer's earnest-money check into the broker's own operating account to save a trip to the bank, intending to move it later. Which fiduciary duty has the broker most directly violated?

• A. Obedience, by ignoring the buyer's instructions
• B. Reasonable care, by acting carelessly
• C. Disclosure, by failing to inform the seller
• D. Accounting, by commingling client funds with the broker's own funds

43. A homeowner hires a property manager to lease units, collect rent, and handle tenant matters across the property over an indefinite period. How is this agent best classified?

• A. A general agent, because the manager may bind the principal in a range of matters
• B. A special agent, because the authority is limited to a single transaction
• C. A customer, because no fiduciary duties are owed
• D. A subagent of the tenants

44. A buyer who is not represented by the agent asks the seller's agent whether the roof has a known, hidden leak. What does the agent owe this unrepresented buyer?

• A. The full range of fiduciary duties, including loyalty
• B. Honesty and fair dealing, including disclosure of known material latent defects, but not fiduciary duties
• C. Nothing, because no relationship exists
• D. Only a duty to keep the seller's information confidential

45. A buyer wants the strongest possible assurance that the seller is defending title against any defect that arose at any point in the chain of ownership. Which deed should the buyer insist upon?

• A. General warranty deed
• B. Quitclaim deed
• C. An unrecorded deed
• D. A deed with no granting clause

46. A grantor wishes to convey property with the strongest possible assurances, warranting title against all defects arising at any time. Which instrument accomplishes this?

• A. A general warranty deed
• B. A quitclaim deed
• C. A life estate
• D. A promissory note

47. A closing agent reviews a signed instrument intended to transfer land. Which one of the following is NOT among the requirements for the deed to be effective?

• A. It contains a legal description of the property
• B. It is signed by the grantor and delivered and accepted
• C. It is notarized by a licensed appraiser
• D. It includes a granting clause and names the parties

48. A lender recorded its mortgage lien years before the county recorded an unpaid property tax lien on the same parcel. At a forced sale, which lien is generally satisfied first?

• A. The mortgage lien, because it was recorded earlier
• B. The property tax lien, regardless of recording order
• C. Neither; liens are always paid pro rata
• D. Whichever lienholder demands payment first

49. A driveway easement lets the owner of Lot 1 cross Lot 2 to reach the road. When Lot 1 is later sold, the new owner continues to use the driveway. This is an example of which kind of encumbrance?

• A. A life estate benefiting Lot 2
• B. A lien that must be re-recorded on each sale
• C. An easement appurtenant that runs with the land
• D. A quitclaim conveyance of Lot 2

50. In an easement appurtenant, the parcel that bears the burden of the easement is known as the:

• A. Servient tenement
• B. Dominant tenement
• C. Remainderman
• D. Grantor's reversion

51. A purchase contract states that the buyer's obligation to close depends on obtaining mortgage financing and a satisfactory inspection. These provisions are best described as:

• A. Contingencies that must be satisfied before a party is obligated to perform.
• B. Elements required for the contract to be valid.
• C. Counteroffers that must be separately accepted.
• D. Liquidated damages clauses.

52. A seller performs fully, but the buyer refuses to close on a unique parcel. The seller asks a court to force the buyer to complete the purchase rather than merely awarding money. Which remedy is the seller seeking, and why is it available here?

• A. Specific performance, because land is deemed unique.
• B. Revocation, because the offer can be withdrawn.
• C. Rescission, because a contingency failed.
• D. Liquidated damages, because the contract set a fixed sum.

53. A purchase agreement provides that if the buyer defaults, the seller keeps the earnest money as the agreed measure of the buyer's default. This provision is an example of a:

• A. Specific performance clause.
• B. Liquidated damages clause.
• C. Financing contingency.
• D. Counteroffer.

54. A borrower's mortgage financing consists of two core instruments. Which pair correctly describes them?

• A. A promissory note that evidences the debt and a mortgage or deed of trust that pledges the property as security
• B. An estoppel certificate and a lease assignment
• C. A listing agreement and a purchase contract
• D. A deed of reconveyance and a title insurance binder

55. In a lien-theory jurisdiction, who holds legal title to the property while the mortgage debt remains outstanding?

• A. The lender holds legal title until the debt is repaid
• B. The county recorder holds title in trust
• C. Title is split equally between borrower and lender
• D. The borrower holds title and the lender holds only a lien

56. On a $200,000 loan, how much would one discount point cost the borrower, and what is its purpose?

• A. $2,000, and it is a penalty for early repayment
• B. $2,000, and it is prepaid interest that buys down the interest rate
• C. $200, and it is a one-time origination fee
• D. $20,000, and it is a mandatory reserve deposit

57. A 17-year-old minor signs a contract to purchase a home. Later the minor chooses to back out. How is this contract best characterized?

• A. Unenforceable, because it was never in writing
• B. Fully binding on both parties
• C. Void, because it never existed legally
• D. Voidable, because a party may disaffirm it

58. An owner holds land in fee simple absolute but a neighbor's recorded easement appurtenant crosses part of it. Which statement best describes the owner's position?

• A. The owner still holds the most complete form of ownership, though the parcel is burdened as the servient tenement
• B. The easement automatically converts the owner's fee into a life estate
• C. The owner may cancel the easement simply by recording a new deed
• D. The easement gives the neighbor superior title to the whole parcel

59. A seller receives a written offer and returns it with the purchase price increased by a material amount, signing where indicated. In contract terms, what is the legal effect of the seller's response?

• A. It is a conditional acceptance that keeps the original offer open.
• B. It forms a binding contract because the seller signed the document.
• C. It operates as a counteroffer that rejects and extinguishes the original offer.
• D. It has no legal effect until the buyer signs again.

60. Two neighbors shake hands on the oral sale of a house and agree on price, but nothing is put in writing. Under the Statute of Frauds, how is this agreement best classified?

• A. Unenforceable, because it is otherwise valid but cannot be enforced in court.
• B. Void, because it never existed legally.
• C. Fully enforceable, because both parties agreed on the price.
• D. Voidable, because either party may disaffirm it.

61. A borrower's adjustable-rate mortgage payment is recalculated periodically based on a published benchmark rate plus a fixed percentage the lender adds. What are these two components together called?

• A. The index and the margin
• B. The discount and the origination fee
• C. The principal and the interest
• D. The escrow and the impound

62. A borrower pays an upfront fee at closing equal to a percentage of the loan amount in exchange for a permanently reduced interest rate over the life of the loan. What is this fee called?

• A. An origination fee
• B. A discount point
• C. An escrow deposit
• D. A recording fee

63. A borrower is quoted a rate that requires paying one and a half discount points on a $160,000 loan to secure the lower rate. How much will the borrower pay in points at closing?

• A. $1,600
• B. $16,000
• C. $2,400
• D. $1,200

64. A lender compares a buyer's total monthly debt payments, including the proposed mortgage payment, to the buyer's gross monthly income before approving a loan. Which qualifying measure is the lender applying?

• A. Capitalization rate
• B. Debt-to-income ratio
• C. Gross rent multiplier
• D. Loan-to-value ratio

65. A lender divides the loan amount by the property's appraised value to help determine how much risk the lender is taking on relative to the collateral. What is this calculation called?

• A. Debt-to-income ratio
• B. Amortization schedule
• C. Capitalization rate
• D. Loan-to-value ratio

66. A buyer's lender requires mortgage insurance because the buyer's down payment is less than 20 percent of the purchase price on a conventional loan. What is the primary purpose of this insurance?

• A. It guarantees the borrower a fixed interest rate for the life of the loan
• B. It protects the lender against loss if the borrower defaults
• C. It protects the borrower against loss of the down payment
• D. It replaces the need for a title insurance policy

67. A first-time buyer with limited savings and a lower credit score is steered toward a government-insured loan program that permits a smaller minimum down payment than most conventional loans. Which loan type is being described?

• A. FHA loan
• B. VA loan
• C. Conventional loan with 20 percent down
• D. USDA loan

68. A buyer who is an eligible veteran wants a loan with no down payment requirement and no ongoing monthly mortgage insurance premium. Which loan program is designed for this buyer?

• A. USDA loan
• B. Conventional loan
• C. VA loan
• D. FHA loan

69. A borrower signs two separate documents at closing: one is the borrower's personal promise to repay the debt, and the other pledges the property as collateral and allows non-judicial foreclosure if the borrower defaults. Which document creates the personal promise to repay?

• A. The title commitment
• B. The deed of trust
• C. The promissory note
• D. The closing disclosure

70. A borrower's loan has low monthly payments for several years, but the remaining unpaid balance becomes due in a single lump sum at the end of the term. What type of payment structure is this?

• A. Balloon payment loan
• B. Graduated payment loan
• C. Negative amortization loan
• D. Fully amortized loan

71. A seller who owns a property free and clear agrees to act as the lender, allowing the buyer to make payments directly to the seller instead of obtaining a bank loan. What is this arrangement commonly called?

• A. An assumption
• B. A blanket mortgage
• C. Seller (owner) financing
• D. A wraparound mortgage

72. A seller with an existing underlying mortgage extends a new, larger loan to the buyer that wraps around and includes the existing debt, with the seller continuing to make payments on the original loan out of the payments received from the buyer. What is this financing technique called?

• A. A wraparound mortgage
• B. A package mortgage
• C. A bridge loan
• D. A purchase money mortgage

73. A borrower wants to pay off her mortgage early but discovers her loan documents impose a fee for doing so within the first several years. What is this fee called?

• A. A discount point
• B. A prepayment penalty
• C. An acceleration fee
• D. An origination fee

74. A lender evaluates a borrower's income, assets, debts, and credit history before extending a mortgage, in keeping with federal rules designed to ensure borrowers are extended loans they can realistically repay. This underwriting standard is best described as an application of which concept?

• A. The ability-to-repay standard
• B. The doctrine of caveat emptor
• C. The Statute of Frauds
• D. The subordination clause

75. A lender collects a portion of a borrower's property taxes and homeowner's insurance premium with each monthly mortgage payment and holds the funds until the bills come due. What is this account called?

• A. An earnest money account
• B. A reserve fund
• C. A trust account
• D. An escrow (impound) account

76. A sales agent wants to begin listing and selling property independently, without being supervised by a broker. Under Texas license law, what must the sales agent do first?

• A. Sponsor with (be supervised under) a licensed broker
• B. Complete a single post-licensing course and practice independently
• C. Register directly with a title company
• D. Obtain a broker's license only after five years of sales experience

77. A broker represents both the buyer and the seller in the same transaction with the written consent of both parties, but appoints two different license holders within the firm to work with each party individually. What is this arrangement called under Texas practice?

• A. Intermediary status with appointed license holders
• B. Undisclosed dual agency
• C. Subagency
• D. Buyer agency only

78. Before entering into substantive discussions about a transaction, a Texas license holder must provide certain written information explaining the types of real estate representation available. What is this required disclosure called?

• A. The Information About Brokerage Services notice
• B. The Closing Disclosure
• C. The Seller's Disclosure Notice
• D. The Truth in Lending disclosure

79. A seller offers to let the listing broker keep any amount received above a stated minimum sale price as the broker's entire commission. How is this type of listing arrangement generally treated?

• A. It is an exclusive agency listing
• B. It is an open listing
• C. It is a standard exclusive right to sell listing
• D. It is a net listing, which is prohibited or heavily discouraged because it creates a conflict of interest

80. A listing broker owes the seller specific fiduciary duties, including care, obedience to lawful instructions, accounting for funds, loyalty, and disclosure. Which of these duties requires the broker to keep the seller's confidential information from being used against the seller's interest?

• A. Obedience
• B. Accounting
• C. Loyalty
• D. Care

81. A landlord refuses to rent an apartment to a family because the family includes young children. Under federal fair housing law, this refusal is most likely a violation based on which protected class?

• A. National origin
• B. Religion
• C. Disability
• D. Familial status

82. An agent consistently shows homes in certain neighborhoods only to buyers of a particular race and avoids showing those same homes to buyers of other races. This practice is known as:

• A. Blockbusting
• B. Redlining
• C. Puffing
• D. Steering

83. An agent tells homeowners in a neighborhood that property values are about to fall because members of a particular protected class are moving in, encouraging the homeowners to sell quickly and below market value. This practice is known as:

• A. Blockbusting
• B. Redlining
• C. Commingling
• D. Steering

84. A prior occupant of a home died of natural causes in the home five years ago. Under Texas law, is this fact required to be disclosed to a prospective buyer?

• A. Yes, it must always be disclosed as a material fact affecting value
• B. No, an occupant's death from natural causes is generally not required to be disclosed and does not constitute a material defect
• C. Yes, but only if the buyer is purchasing with a VA loan
• D. Yes, but only if the death occurred within the last year

85. A broker's unlicensed administrative assistant answers phones, schedules showings arranged by a licensed agent, and prepares marketing flyers using content the agent provides. Which activity would this assistant NOT be permitted to perform without a license?

• A. Assembling flyers from agent-supplied content
• B. Answering routine phone inquiries
• C. Negotiating contract terms or discussing price with a prospective buyer
• D. Scheduling a showing at a licensed agent's direction

86. A broker deposits earnest money received from a buyer into the same bank account the broker uses to pay personal and office expenses. Which violation has the broker most likely committed?

• A. Commingling of funds
• B. Conversion
• C. Fraud
• D. Misrepresentation

87. A consumer obtains a court judgment against a real estate license holder for fraud in a transaction but is unable to collect the judgment because the license holder has no recoverable assets. What recourse might the consumer have under Texas law?

• A. Apply to the Real Estate Recovery Trust Fund for reimbursement, subject to statutory conditions
• B. Request that the license holder's broker personally pay the judgment
• C. File a new lawsuit against the Texas Real Estate Commission directly
• D. Appeal directly to a federal court

88. A sales agent posts an advertisement for a listed property on social media featuring only the agent's personal name and phone number, with no mention of the sponsoring broker. Under Texas advertising rules, what is the problem with this advertisement?

• A. Advertising generally must include the sponsoring broker's name, since a sales agent may not advertise independently of the broker
• B. The advertisement must include the buyer's lender's name
• C. There is no problem; agents may advertise entirely under their own name
• D. The advertisement must include the seller's name

89. A creditor holding an ordinary unsecured debt attempts to force the sale of a debtor's primary residence in Texas to satisfy the debt. Under Texas homestead law, what generally happens?

• A. The sale proceeds automatically because homestead law only protects rental property
• B. The homestead is generally protected from forced sale by most unsecured creditors, subject to limited exceptions such as valid mortgage or tax liens
• C. The creditor may seize the home only after the debtor files bankruptcy
• D. The debtor must first obtain court permission to keep the home

90. A married couple purchases a home in Texas using income earned by either spouse during the marriage, and the deed does not specify separate property. How is this property most likely classified under Texas law?

• A. Community property, owned jointly by both spouses
• B. Property held in a life estate for both spouses
• C. Separate property of whichever spouse's name appears first on the deed
• D. Tenancy in common automatically

91. A Texas broker prepares a customized purchase contract for a residential resale transaction, drafting unique contract language rather than using a standard form. Why might this practice expose the broker to a charge of unauthorized practice of law?

• A. Only attorneys may show property to buyers
• B. Texas license holders are generally required to use TREC-promulgated or approved contract forms rather than drafting original contract language, which is considered the practice of law
• C. Brokers may only use forms provided by the seller's attorney
• D. Brokers may never assist with any contract paperwork

92. A licensed agent wants to pay a referral fee to a friend who is not a licensed real estate agent for referring a buyer. Under Texas license law, is this generally permitted?

• A. No, compensation for real estate brokerage activity generally may only be paid to licensed persons, not unlicensed individuals
• B. Yes, but only if the unlicensed person signs a waiver
• C. Yes, referral fees to unlicensed persons are unrestricted
• D. Yes, provided the fee is under a certain small amount

93. A city government takes a strip of a private owner's land to widen a public road, providing the owner with just compensation as required by law. Which government power authorizes this action?

• A. Escheat
• B. Police power
• C. Eminent domain
• D. Taxation

94. A licensed sales agent wants to keep her license active and in good standing over time. Under Texas license law, what is generally required to maintain (renew) real estate licensure?

• A. Retaking the original licensing examination every renewal cycle
• B. No requirements; licenses never expire in Texas
• C. Completing required continuing education and timely renewal with the Commission
• D. Sponsorship by a different broker every year regardless of circumstances

95. A deed conveys land "to the city for so long as it is used as a public park," with the grantor retaining the right to automatically regain the property if that condition is ever violated. What type of estate has the city received?

• A. A life estate
• B. A leasehold estate
• C. A fee simple absolute
• D. A fee simple determinable

96. A grantor conveys property "to my niece for life, then to my nephew." What interest does the nephew hold while the niece is alive?

• A. A fee simple determinable
• B. A life estate
• C. A leasehold estate
• D. A remainder interest

97. A tenant rents an apartment on a month-to-month basis with no specified end date, and the tenancy automatically renews each month until either party gives proper notice to terminate. What type of leasehold estate is this?

• A. A tenancy for years
• B. A periodic tenancy
• C. A tenancy at will
• D. A tenancy at sufferance

98. A tenant's lease has expired, but the tenant continues to occupy the unit without the landlord's consent and without paying rent. What type of tenancy does this situation create?

• A. A tenancy for years
• B. A joint tenancy
• C. A tenancy at sufferance
• D. A periodic tenancy

99. Three unrelated investors buy a commercial building together. Each owns an individual, undivided interest, and when one investor dies, that investor's share passes to the investor's heirs rather than to the surviving co-owners. What form of concurrent ownership is this?

• A. Tenancy by the entirety
• B. Tenancy in common
• C. Community property
• D. Joint tenancy with right of survivorship

100. A landowner subdivides a large parcel, and the resulting rear lot has no access to a public road except by crossing the front lot that was sold to someone else. What type of easement is likely to be implied to give the rear lot access?

• A. A license
• B. An easement in gross
• C. A prescriptive easement
• D. An easement by necessity

101. For many years, a neighbor has openly and continuously crossed a corner of an adjoining owner's land without permission, and the true owner never objected or took action to stop it. Under what doctrine might the neighbor eventually gain a legal right to continue this use?

• A. Adverse possession of fee title
• B. Riparian rights
• C. Easement by necessity
• D. Prescriptive easement

102. A homeowner gives a neighbor oral permission to park a boat trailer on a side yard temporarily, understanding the homeowner can revoke this permission at any time. What type of interest does the neighbor have?

• A. A license
• B. An easement appurtenant
• C. An easement in gross
• D. A leasehold estate

103. A contractor completes renovation work on a homeowner's property but is never paid. To secure payment, the contractor files a claim against the property itself. What type of lien has the contractor most likely filed?

• A. A judgment lien
• B. A mechanic's lien
• C. An ad valorem tax lien
• D. A mortgage lien

104. A property owner has an existing recorded mortgage. A court later enters a money judgment against the owner in an unrelated lawsuit, and the judgment creditor records a judgment lien against the same property. If the property is later sold to satisfy debts, how does the judgment lien generally rank relative to the earlier mortgage?

• A. The judgment lien takes priority because a court entered it
• B. The judgment lien automatically outranks the mortgage regardless of recording date
• C. The judgment lien generally ranks behind the earlier-recorded mortgage, since general liens typically follow a first-in-time, first-in-right recording priority rule
• D. The two liens are paid simultaneously regardless of date

105. A grantor conveys property by warranty deed but limits the warranty to defects that arose only during the time the grantor personally held title, making no promises about defects from before that period. What type of deed is this?

• A. A special warranty deed
• B. A bargain and sale deed without covenants
• C. A quitclaim deed
• D. A general warranty deed

106. A grantor signs a valid deed conveying property to a buyer but locks it in a drawer and never hands it over or otherwise conveys it to the buyer before the grantor dies. Has title passed to the buyer?

• A. No, because the buyer must also record the deed before the grantor signs it
• B. Yes, because the deed was validly signed
• C. No, because a deed must be delivered and accepted during the grantor's lifetime to transfer title, and a signed but undelivered deed does not convey ownership
• D. Yes, because the deed was properly notarized

107. A buyer purchases property but never records the deed. Later, the seller fraudulently sells the same property to a second, unsuspecting buyer who pays value, has no knowledge of the first sale, and promptly records. Which buyer is generally protected under typical recording act principles?

• A. The first buyer, because the first sale occurred first in time regardless of recording
• B. Both buyers equally share ownership
• C. Neither buyer, because the property automatically reverts to the seller
• D. The second buyer, because recording acts generally protect a subsequent bona fide purchaser for value who records without notice of the earlier unrecorded interest

108. A dispute arises over whether a custom-built bookshelf, bolted to the wall by the seller, is a fixture that stays with the house or personal property the seller may remove. Which factor is generally considered LEAST relevant to resolving this question?

• A. Any agreement between the parties addressing the item
• B. Whether the item was intended to become a permanent part of the property
• C. The original purchase price the seller paid for the item
• D. The method and permanence of attachment to the property

109. A downtown property owner sells the right to construct and use space in the air above the owner's building to a developer, while retaining ownership of the surface and everything below it. This transaction primarily involves which category of property rights?

• A. Mineral rights
• B. Littoral rights
• C. Air rights
• D. Riparian rights

110. A property borders a flowing river, and the owner has the right to reasonable use of the water and access to the water's edge, with the boundary potentially shifting gradually as the river's course changes over time. What category of rights does this describe?

• A. Subsurface rights
• B. Riparian rights
• C. Air rights
• D. Littoral rights

111. Over many years, a river gradually deposits soil along a landowner's riverbank, slowly increasing the size of the property. What is this gradual, natural addition of land called?

• A. Accretion
• B. Erosion
• C. Avulsion
• D. Escheat

112. A landowner dies without a will and without any heirs who can be located. What happens to the property under the government power that addresses this situation?

• A. The property escheats to the state, since escheat prevents property from remaining ownerless
• B. The property is automatically sold at a private auction to the highest bidder within 24 hours
• C. The property reverts to the most recent mortgage lender regardless of loan balance
• D. The property is permanently held by the county in trust indefinitely

113. A city adopts an ordinance limiting a neighborhood to single-family residential use, restricting how property owners in that area may develop or use their land. Which government power authorizes this type of land-use regulation?

• A. Escheat
• B. Taxation
• C. Police power
• D. Eminent domain

114. A buyer purchases a unit in a building and receives a deed to that individual unit along with an undivided interest in the building's common areas, rather than shares in a corporation that owns the whole building. What type of ownership has the buyer acquired?

• A. A timeshare interest
• B. A planned unit development lot
• C. Cooperative ownership
• D. Condominium ownership

115. A buyer and seller sign a purchase agreement, but the seller later argues the agreement is invalid because the seller received nothing of value in exchange for the promise to sell. Which essential contract element is the seller claiming is missing?

• A. Acceptance
• B. Legal capacity
• C. Consideration
• D. Offer

116. A seller receives a buyer's written offer and responds by crossing out the closing date and writing in a new one before signing and returning it. What is the legal status of the buyer's original offer at this point?

• A. It remains open and binding on the buyer exactly as originally written
• B. It converts into an option contract
• C. It has been terminated by the seller's counteroffer, and the buyer is no longer bound by the original terms
• D. It automatically becomes binding once the seller signs anywhere on the document

117. A buyer submits a written offer to purchase a home. Before the seller accepts, the buyer changes his mind and notifies the seller in writing that the offer is withdrawn. Assuming no option consideration was paid to keep the offer open, may the buyer withdraw it?

• A. No, the buyer must wait at least three business days before revoking
• B. Yes, an offeror may generally revoke an offer any time before it is accepted, unless consideration was paid to hold it open
• C. Yes, but only if the seller has not yet read the offer
• D. No, once submitted an offer can never be withdrawn

118. A landlord and tenant orally agree to a lease with a term of only eight months. Neither party signs anything in writing. Under the Statute of Frauds, is this short-term lease generally enforceable despite being oral?

• A. No, because only written leases exist under Texas law
• B. Yes, but only if a broker witnesses the oral agreement
• C. No, all leases regardless of length must be in writing
• D. Yes, short-term leases, typically one year or less, are generally exempt from the Statute of Frauds' writing requirement and can be enforceable even if oral

119. A property owner promises to pay a $500 reward to whoever finds and returns a lost pet, but does not exchange this promise for another party's return promise. If someone finds and returns the pet, what type of contract has been formed?

• A. A void contract
• B. A unilateral contract, because only one party made a promise, exchanged for the other party's performance rather than a return promise
• C. A bilateral contract
• D. An executory contract only

120. A seller induces a buyer to sign a purchase contract by intentionally lying about a material fact regarding the property. Once the buyer discovers the fraud, what is the legal status of the contract from the buyer's perspective?

• A. Voidable at the buyer's election, meaning the defrauded buyer may choose to rescind or affirm the contract
• B. Automatically reformed by a court to remove only the false statement
• C. Fully valid and enforceable exactly as written with no remedy available
• D. Automatically void from the start with no choice available to either party

121. A purchase contract states that the buyer's obligation to close is conditioned on the buyer obtaining loan approval by a specified date. If the buyer, acting in good faith, cannot obtain financing by that date, what is the typical effect of this contingency?

• A. The contract automatically converts into a lease-option arrangement
• B. The buyer may generally terminate the contract and recover the earnest money, since the condition precedent to closing was not satisfied
• C. The buyer forfeits the earnest money regardless of the reason for the financing failure
• D. The seller may force the buyer to close using cash instead

122. A buyer under contract to purchase a property transfers all of the buyer's rights and obligations under the contract to a third party, and the seller agrees to release the original buyer entirely and accept the third party as the new, sole obligor. What has occurred?

• A. A simple assignment, with the original buyer still liable
• B. An option contract
• C. A novation, which substitutes a new party and releases the original party from further liability
• D. A contingency

123. A prospective buyer pays a landowner $1,000 for the exclusive right, but not the obligation, to purchase a parcel at a set price any time within the next six months. What type of agreement have the parties created?

• A. A right of first refusal only
• B. A listing agreement
• C. A bilateral purchase contract
• D. An option contract, which the buyer may exercise or let expire, having paid consideration to keep the offer open

124. A seller signs a listing agreement stating that the listing broker earns a commission on the sale of the property regardless of who actually procures the buyer, including if the seller finds the buyer without any agent's help. What type of listing is this?

• A. An open listing
• B. An exclusive right to sell listing
• C. A net listing
• D. An exclusive agency listing

125. Under a listing agreement, the seller retains the right to sell the property directly without owing the listing broker any commission, but if any other party, including another broker, sells the property, the listing broker earns the commission. What type of listing is this?

• A. An exclusive agency listing
• B. An open listing
• C. A net listing
• D. An exclusive right to sell listing

126. Two different agents both worked with the same buyer over time, and a dispute arises over which agent is entitled to the commission after the sale closes. Which concept is typically used to resolve which agent's efforts were the primary, uninterrupted cause of the completed sale?

• A. Procuring cause
• B. Subordination
• C. Constructive notice
• D. Estoppel

127. A buyer signs an agreement with a broker establishing an agency relationship in which the broker owes the buyer fiduciary duties and will assist the buyer in locating and negotiating for property. What is this agreement called?

• A. A listing agreement
• B. A net listing
• C. A buyer representation agreement
• D. An option agreement

128. A purchase contract includes a clause stating that all specified dates and deadlines, including the closing date, must be strictly performed exactly on time or the delay constitutes a material breach. What is this type of clause commonly called?

• A. A "time is of the essence" clause
• B. A subordination clause
• C. A merger clause
• D. An escalation clause

129. A property owner who has been declared legally incompetent by a court signs a contract to sell the property. What is the legal status of this contract?

• A. Fully valid and enforceable as written
• B. Void, because a person adjudicated legally incompetent generally lacks the legal capacity to form a binding contract
• C. Voidable only at the buyer's election
• D. Automatically assigned to the owner's real estate agent to complete

130. After closing, a dispute arises over a term that appeared in the purchase contract but was not repeated or addressed in the deed. Under the doctrine that generally governs the relationship between the contract and the deed at closing, what typically happens to unaddressed contract terms?

• A. They remain fully enforceable forever regardless of the deed's contents
• B. They are generally merged into and superseded by the deed at closing, unless they were intended to survive closing, such as certain warranties
• C. They convert into a separate option contract
• D. They automatically become part of the deed even though unmentioned

131. A buyer discovers that the seller made a material misrepresentation about the property before the sale closed and wants to undo the transaction entirely and be restored to the buyer's original position rather than simply collect money damages. Which remedy is the buyer seeking?

• A. Rescission, which unwinds the transaction and restores both parties to their pre-contract positions
• B. Liquidated damages
• C. Specific performance
• D. Novation

132. A home sale closes partway through the year, and the buyer and seller must divide certain recurring expenses, such as property taxes, so that each party pays only for the portion of the year each owned the property. What is this closing calculation called?

• A. Proration
• B. Capitalization
• C. Subordination
• D. Amortization