Free Texas Real Estate Practice Exam

Q1.Under 24 C.F.R. § 100.600(a)(1), how many incidents of quid pro quo harassment are required to establish a fair housing violation?

• A.At least two incidents
• B.Three or more incidents constituting a pattern
• C.Depends on the severity of each incident
• D.One incident is sufficient

Q2.A licensed sales agent meets a prospective buyer at an open house. Before any substantive discussion of the buyer's needs or financial situation, what must the sales agent do under Texas law?

• A.Provide the buyer with the TREC-promulgated Information About Brokerage Services (IABS) notice.
• B.Have the buyer sign a Buyer Representation Agreement before answering any questions.
• C.Disclose in writing that the agent represents the seller exclusively.
• D.Obtain written consent from the listing broker before speaking with the buyer.

Q3.When dual agency occurs in a real estate transaction, which fiduciary duty is most significantly modified?

• A.The duty of confidentiality
• B.The duty of loyalty
• C.The duty of reasonable care
• D.The duty of accounting

Q4.Under Texas law, when a TREC-promulgated contract form exists for a particular transaction, a Texas real estate license holder MUST use that form. Which agency promulgates the contract forms that license holders are required to use?

• A.The Texas Association of REALTORS® (TAR)
• B.The Texas Real Estate Commission (TREC)
• C.The Texas State Bar Association
• D.The National Association of REALTORS® (NAR)

Q5.How does A.R.S. § 32-2153(F)(1) characterize a letter of concern?

• A.A license suspension.
• B.An advisory letter used when discipline is not warranted.
• C.A civil penalty.
• D.A criminal conviction.

Q6.A tenant operates a dry-cleaning business in a leased commercial space and installs specialized pressing equipment bolted to the concrete floor. When the lease ends, how are these items classified?

• A.Real property, because they are permanently attached to the building
• B.Fixtures that automatically convey to the landlord
• C.Trade fixtures that remain personal property and may be removed by the tenant
• D.Emblements that must be harvested before the tenant vacates

Q7.Which of the following is NOT an essential element of a valid contract in Texas?

• A.Offer and acceptance
• B.Consideration
• C.Notarization
• D.Competent parties

Q8.A broker is the designated broker of record for a large real estate firm. During a routine state audit, regulators discover that the firm has been operating a branch office for 14 months under a branch manager who allowed her individual license to lapse after month three. All transactions closed during the unlicensed period were supervised exclusively by the branch manager. What is the broker of record's MOST SIGNIFICANT potential liability in this scenario?

• A.The broker of record faces no liability because branch managers are solely responsible for maintaining their own licensure.
• B.The broker of record is potentially subject to disciplinary action—including suspension or revocation of the firm license—for failing to maintain a system of supervision that would have detected the lapse, because the broker's statutory duty of supervision extends to verifying the licensure status of all affiliated licensees.
• C.Liability is limited to an administrative fine assessed against the branch manager personally, since the transactions were completed and no consumers were harmed.
• D.The broker of record is liable only if the state can prove the broker had actual knowledge that the branch manager's license had lapsed.

Q9.What is the key difference between a reasonable accommodation and a reasonable modification?

• A.Accommodations are physical changes; modifications are policy changes
• B.Accommodations are policy/rule changes paid for by the housing provider; modifications are physical changes paid for by the resident
• C.Both are paid for by the housing provider
• D.Both are paid for by the resident

Q10.Under Texas homestead law, the maximum protected acreage for an urban homestead used for residential purposes is:

• A.5 acres
• B.100 acres
• C.10 acres
• D.200 acres

Q11.When must a covered agreement be reviewed under A.R.S. § 32-2151.01(G)?

• A.Before any party signs.
• B.Within 24 hours.
• C.Within 10 business days after execution.
• D.Only at closing.

Q12.The City of Austin determines it needs a privately owned parcel to build a new public transit station. The owner refuses to sell, so the city initiates a condemnation action. This process is BEST classified as:

• A.Voluntary alienation through a government purchase agreement
• B.Involuntary alienation through the power of eminent domain
• C.A partition action initiated by co-tenants of the property
• D.Adverse possession exercised by a public entity

Q13.A Texas sales agent sponsored by Broker A wants to begin working for Broker B instead. Under TRELA and TREC Rules, which of the following correctly describes the process for changing sponsorship?

• A.The sales agent may immediately begin working for Broker B as long as Broker B verbally agrees to sponsor the agent.
• B.Broker A must file a termination notice with TREC, after which the agent automatically becomes sponsored by Broker B.
• C.The sales agent's license must be released by Broker A (or expire with Broker A's sponsorship) and Broker B must submit a new sponsorship request to TREC before the agent may perform brokerage activities under Broker B.
• D.The sales agent may transfer sponsorship by notifying TREC in writing within 30 days after starting work for Broker B, with no gap in active status.

Q14.In Texas, where are most real estate closings typically conducted?

• A.At the broker's office
• B.At the title company or escrow office
• C.At the county courthouse
• D.At the lender's office

Q15.Which is not listed as a protected class in A.R.S. § 41-1491.14?

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