TX Sales Agent Practice Exam.
62 verified 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. Conventional loans are insured by the FHA, and VA loans always require twenty percent down
• C. FHA loans are guaranteed only for veterans, and conventional loans require government backing
• D. VA loans are insured by the FHA, and conventional loans permit no down payment

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 Truth in Lending Act (TILA)
• C. The Civil Rights Act of 1866
• D. The federal Fair Housing Act

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

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

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

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

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

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 accepts the offer, because a price is stated
• B. It operates as a counteroffer that rejects and extinguishes the original offer
• C. It creates a binding option contract in favor of the buyer
• 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 oral agreements always lack consideration
• B. 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
• C. Because land sales require a general warranty deed at the offer stage
• D. Because oral agreements are automatically void from the outset

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 2018 mortgage, because it was recorded first
• B. The property tax lien, because tax liens generally take priority over all other liens regardless of when they were recorded
• C. Neither, because both are extinguished by the sale
• D. Whichever creditor demands payment 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 land ownership is a single indivisible right that cannot be split
• B. That the bundle of rights in land can be separated, so different parties may hold surface and subsurface rights
• C. That surface owners always retain all subsurface rights regardless of any conveyance
• D. That mineral rights can never be transferred apart from the surface

10. 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. $43
• B. $56
• C. $86
• D. $112

11. 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. 1.5 times
• B. 2 times
• C. 2.5 times
• D. 3 times

12. 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. 71 correct
• C. 84 correct
• D. 96 correct

13. A test-taker wants to know the total continuous time allotment for the Sales examination so they can plan their pacing. What is the published duration?

• A. 56 minutes
• B. 120 minutes
• C. 240 minutes
• D. 430 minutes

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. 43 questions
• C. 56 questions
• D. 84 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 short of passing
• B. Exactly at the passing threshold
• C. One correct answer above 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. 28 questions
• B. 43 questions
• C. 56 questions
• D. 60 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. 28 questions
• B. 43 questions
• C. 56 questions
• D. 84 questions

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

• A. $28
• B. $43
• 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. 56 questions
• B. 71 questions
• C. 84 questions
• D. 112 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 automatically terminates on the owner's death
• B. It conveys the most complete ownership interest, of indefinite duration, and passes to heirs
• C. It grants only the right to use the property for a fixed number of years
• D. It cannot be sold or mortgaged without government approval

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

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

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

• A. $28
• B. $43
• C. $56
• D. $60

24. 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. 72 questions
• C. 84 questions
• D. 96 questions

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

26. 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. 28 questions
• B. 43 questions
• C. 56 questions
• D. 240 questions

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

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

29. 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 converts the fee simple into a life estate
• C. It is required for the deed to be signed by the grantor
• D. It eliminates the need for a granting clause

30. 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 43 and 28
• C. The sum of 56 and 43
• D. The sum of 240 and 56

31. 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. 43 questions
• C. 56 questions
• D. 60 questions

32. What is the fee charged for the Sales Agent examination?

• A. $28
• B. $43
• C. $56
• D. $240

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

34. If a candidate paid the standard Sales examination fee once and had 240 minutes for the sitting, which pairing of fee-to-time-limit is correct?

• A. $43 fee, 240-minute limit
• B. $56 fee, 240-minute limit
• C. $43 fee, 210-minute limit
• D. $28 fee, 180-minute limit

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

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

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

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

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

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

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

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

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

41. 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 Real Estate Settlement Procedures Act, implemented by Regulation X
• C. The Fair Housing Act, implemented by Regulation B
• D. The Civil Rights Act of 1866

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

43. 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. Accounting, by commingling client funds with the broker's own funds
• D. Disclosure, by failing to inform the seller

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

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

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

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

48. 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 includes a granting clause and names the parties
• C. It is notarized by a licensed appraiser
• D. It is signed by the grantor and delivered and accepted

49. 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

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

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

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

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

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

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

55. 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. A deed of reconveyance and a title insurance binder
• C. A listing agreement and a purchase contract
• D. An estoppel certificate and a lease assignment

56. 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 borrower holds title and the lender holds only a lien
• C. The county recorder holds title in trust
• D. Title is split equally between borrower and lender

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

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

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

60. 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 easement automatically converts the owner's fee into a life estate
• B. The owner still holds the most complete form of ownership, though the parcel is burdened as the servient tenement
• 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

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

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