TREC Sales Agent Practice Exam

These questions are part of the practice quiz. Start practicing

• Regarding the law of descent and distribution, what is NOT true about adopted children?
• According to the Texas Real Estate Commission Code of Professional Ethics and Conduct, which statement is NOT true?
• What right does a homeowner have to redeem their property prior to a foreclosure sale?
• What does the term "Title" refer to in real estate?
• What is the consequence for an unlicensed assistant found to be acting illegally in Texas?
• In the mortgage context, what does "Principal" refer to?
• What is the main function of the Texas Real Estate Commission (TREC)?
• During what time frame must a buyer give notice of termination to the seller after paying the option fee?
• Which power does the Texas Real Estate Commission NOT possess?
• According to the Canons of Professional Ethics, which statement is NOT true regarding agent duties?
• If a license holder fails to provide a title advisory notice, what could be the consequence?
• How is commission typically defined in real estate transactions?
• What is the primary purpose of a listing agreement?
• What is the function of a "Listing Agent"?
• What type of activities is the office manager of a real estate firm typically not required to have a real estate license for?
• In the TREC One to Four Family Residential Contract, what is true about the buyer's option to terminate?
• What does "Financial Contingency" refer to in a purchase agreement?
• What must a seller's agent disclose when approached by potential buyers at an open house?
• What is the purpose of a "Home Inspection"?
• Under community property laws, what is the property accumulated prior to marriage called?
• What are the two levels of real estate licensing recognized by TREC?
• How does community property law define property acquired during the marriage?
• If a business conducts transactions under a different name, which of the following actions is NOT required?
• What does the "Closing Disclosure Report" outline?
• In the case of a husband selling a rental property alone, who must sign the listing agreement?
• If a buyer does not wish to create an agency relationship, what must the license holder ensure?
• Under the Texas Deceptive Trade Practices Act, a person acquiring goods or services is classified as a?
• Mrs. Smith granted property to the animal shelter with a condition. What type of estate is this?
• What does "Net Operating Income (NOI)" represent?
• Could a statement included in Special Provisions result in disciplinary action if it conflicts with a TREC addendum?
• What does it mean to "Assume a Mortgage"?
• What must occur for a subagency relationship to be valid between brokers?
• What is true about a married couple selling their community homestead?
• What does the Texas Real Estate Commission emphasize regarding a broker's responsibility for agent activities?
• What action could lead to the revocation of a sales agent's license by TREC?
• How many days after closing must a veteran occupy a property under the Texas Veterans Housing Assistance Program?
• In real estate, what does a buyer typically receive after the Closing?
• Upon obtaining a listing, what must a broker or licensed sales agent provide to the owner?
• Do newspapers need to comply with fair housing advertising laws?
• In what situation would a real estate license holder violate duties owed to a tenant?
• What are "Closing Costs"?
• How is "Real Property" defined?
• What is the purpose of the "Fair Housing Act"?
• Which of the following is NOT considered a deceptive act under the Texas Deceptive Trade Practices Act?
• If a buyer wants to create a contract clause that allows the return of earnest money upon demand, what should the broker advise?
• For the deed of a homestead property to be valid, who must sign it?
• Which of the following actions is NOT grounds for revoking a sales agent's license?
• Describe "Adjustable-Rate Mortgages (ARMs)"?
• What is necessary for a minor's real estate contract to be enforceable?
• What is the primary role of an "Escrow Agent"?
• What is required for a broker to act as an intermediary between a buyer and seller?
• What is the consequence of failing to disclose material facts to a buyer?
• Which of the following activities does NOT require a broker's license in Texas?
• Who can a real estate sales agent receive compensation from?
• What action can a broker take regarding an unlicensed assistant working on a transaction?
• Regarding Texas homestead law, which statement is incorrect?
• What action may the Texas Real Estate Commission take if the Real Estate Recovery Trust Account drops below $1 million?
• What does TREC allow that is optional for helping sellers disclose property condition?
• What does "Contingency" refer to in a real estate contract?
• What does "Equity" represent in real estate?
• In real estate, what is a "Short Sale"?
• When should a real estate license holder provide the Information About Brokerage Services form?
• What may happen to a license holder who fails to advise a buyer about examining the property abstract before closing?
• Which activity is a licensed real estate agent allowed to perform under Texas law?
• Which of the following is NOT a ground for disciplinary action against a license holder regarding trust funds?
• What is the TRID rule?
• Under TRELA, what is TREC allowed to adopt rules about regarding advertising?
• Which of the following best describes a broker's commission?
• Why is an "Earnest Money Deposit" used in real estate transactions?
• The Texas Real Estate License Act (TRELA) requires a broker to disclose what to potential buyers?
• Which of the following is NOT a duty of a sales agent?
• What is the statutory period of redemption for properties foreclosed on for non-payment of homeowner's association dues in Texas?
• What should a real estate license holder do if they suspect client misconduct?
• In Texas, what does the completion of agency disclosure ensure?
• Under Texas law, in what instance is a broker justified in paying an unlicensed assistant?
• What does "VA Loans" stand for?
• What is the maximum amount a consumer can receive from a Deceptive Trade Practices Act award?
• Which of these leases is enforceable in Texas?
• What does an "In-House" transaction mean in real estate?
• What is the purpose of Title Insurance?
• Which statement regarding alternate names or assumed names used by sales agents is true?
• Which party is primarily responsible for disclosing potential issues with a property?
• What does FHA stand for in real estate lending?
• What kind of duty does the Canon of Professional Ethics include?
• Which of the following individuals is exempt from the Texas Real Estate License Act?
• What is the purpose of a Buyer Representation Agreement?
• What is "Dual Licensing" in real estate?
• What is a potential consequence for a license holder not following disclosure requirements?
• Which statement is NOT true about a residential rental locator?
• In real estate, what is the purpose of an appraisal?
• In which scenario is a seller NOT required to provide a Seller's Disclosure of Property Condition?
• What is the statute of limitations for filing a suit for breach of a written contract in Texas?
• Which activity does NOT require a real estate license?
• Upon expiration of a listing agreement, a listing agent:
• If a seller's listing agreement has expired and the seller lists with another brokerage, what must the original agent do with buyer information?
• For a business entity licensed as a broker, what is required?
• What should an agent avoid disclosing regarding property history under specific circumstances?
• Under the Texas Property Code, what happens if a seller does not provide the Seller's Disclosure?
• What is described as a "Buyer’s Market"?
• Who sets the license renewal fees for real estate professionals in Texas?
• What should a broker do if they wish to rebate a portion of their commission?
• Which statement about rebates is incorrect?
• What can a buyer do if the seller fails to provide the required Seller's Disclosure of Property Condition?
• What does "material fact" refer to in a real estate context?
• What is the main benefit of having a title search performed during the property buying process?
• Who is NOT exempt from the provisions of the Texas Real Estate License Act?
• What is the Texas Real Estate License Act (TRELA)?
• In an intermediary transaction, what must occur for a broker to receive a commission from both parties?
• Which of the following describes the rights of a surviving spouse concerning homestead property?
• Which of the following is true regarding the Canons of Professional Conduct?
• What type of policies can potentially protect brokers from disciplinary action due to their agents' actions?
• What does the Texas Statute of Frauds require for enforceability in leases?
• What is the "MLS" in real estate?
• How many days prior to the renewal of a sales agent or broker license must a license holder complete their education?
• What does the term "Escrow" refer to in real estate?
• What role does the Texas Real Estate Commission (TREC) play in the real estate profession?
• What action is required of a landlord when a new tenant occupies a residential property?
• What is the definition of "Lead-Based Paint Disclosure"?
• What is the typical licensing period for a real estate agent in Texas?
• What is included in a "Seller's Disclosure Notice"?
• What is required of sales agents when a sponsoring broker's license is suspended?
• What consequence may result if the TREC makes a payment from the Real Estate Trust Account for a license holder?
• Which of the following individuals is NOT required to be licensed as a broker or sales agent?
• What is the definition of an "Easement" in real estate?
• What is one potential consequence for a broker if they are negligent in supervising a sales agent?
• When a license holder represents a seller, to whom must they disclose that fact?
• What is the meaning of "Zoning" in the context of real estate?
• In Texas, if a homeowner defaults on a mortgage loan, when can they exercise their right to redeem the property?
• Under which condition may an unlicensed individual share in the income earned by a real estate broker?
• What form has TREC produced to aid sellers in meeting the Texas Property Code requirements?
• What must an agent do regarding the disclosure of a past murder in a property?
• Which of the following is NOT typically included in the Closing process?
• What is a "Real Estate Investment Trust (REIT)"?
• What is meant by "Dual Agency" in real estate transactions?
• How are "Conventional Loans" defined?
• Under Texas law, what must an attorney be before accepting brokerage commissions?
• What does a Broker Responsibility Notice inform clients about?
• What can brokers and sales agents in Texas who are not lawyers do concerning contract forms?
• In a situation where the sales agent excludes disclosed defects from an MLS, who may the buyer seek legal recourse against?
• What must a broker prove to file court action to collect an unpaid fee?
• What does "Contingent Offer" imply in real estate?
• Why might a seller agree to a "Short Sale"?
• Which of the following is not a requirement for a corporate or LLC business name?
• Which of the following activities is not permitted for a Texas licensed broker or sales agent?
• If a sales agent violates the Texas Fair Housing Act, what may happen to their sponsoring broker?
• What is a consequence of unlicensed activity in real estate?
• What does a Homeowners Association (HOA) do?
• What does the acronym "HUD" stand for?
• What does "Amortization" refer to in real estate finance?
• What happens to an application deposit if a rental application is accepted?
• What must happen if the Real Estate Recovery Trust Account balance falls below $1 million?
• What does "Underwriting" involve in the context of mortgages?
• Who is responsible for promulgating mandatory use forms for Texas brokers and sales agents?
• What is required for a broker to enforce a commission collection?
• What is meant by "Foreclosure"?
• What does "Closing" refer to in real estate transactions?
• What is the constitutional right enjoyed by the head of a Texas household in property occupied by the family?
• What is the main objective of "Property Management"?
• What type of regulation does "Zoning" involve?
• What is the primary function of a Homeowners Association (HOA)?
• What is a Comparative Market Analysis (CMA)?
• What should a listing agent do if the seller refuses to disclose material facts about the property?
• What type of insurance must a buyer usually obtain when securing a mortgage?
• What occurs when an application fee is paid and the application is rejected?
• What happens if the condition of a fee simple defeasible estate is violated?
• In property transactions, what is the significance of the "Earnest Money Deposit"?
• What must a sales agent include clearly and conspicuously in all advertising on their website?
• What is the consequence for an unlicensed assistant who performs licensed activities?
• At what age is a person normally considered legally emancipated in Texas?
• How would you define "Appraisal" in real estate?
• What can a consumer be awarded in a suit involving the Texas Deceptive Trade Practices Act?
• If a buyer includes a contingency to return earnest money, what is essential?
• What is the purpose of a "Purchase Agreement"?
• What is typically required for a borrower to qualify for a Conventional Loan?
• Income generated from separate property in Texas is generally presumed to be what?
• Which statement is false regarding the Texas Deceptive Trade Practices Act?
• In the context of real estate agreements, what key condition does "Pre-Approval" provide to the buyer?
• What violation occurs if a license holder discloses tenant information to a landlord without consent?
• Which advertisement might be considered misleading?
• What does "Lease Option" refer to in real estate?
• Under what condition may a sales agent use an assumed name in advertising?
• What does the concept of "Agency" in real estate involve?
• Which of the following actions would NOT initiate an investigation by TREC regarding a real estate license holder?
• What is a statutory right of redemption in the context of foreclosure?
• What does "Fair Market Value" signify?
• Which of the following is NOT included in the Canons of Professional Ethics and Conduct?
• What are "Property Taxes"?
• What does "Pre-Approval" indicate in home loans?
• What aspect of real estate does a CMA focus on?
• Why can a man who assisted in selling a neighbor's house not sue for commission after completing prelicensing classes?
• What significance does the Option Period hold in a real estate contract?