Texas Real Estate Exam Practice

Question 1 of 10

Property DisclosureEasy

Is a transfer by a fiduciary (such as an estate executor) in the course of administering an estate generally exempt from the disclosure requirement?

ANo, executors must always provide full disclosure

BNo, this exemption applies only to trustees, never executors

CYes, but only for estates valued under a set amount

DYes, this kind of fiduciary transfer is generally exempt

Explanation

Transfers made by a fiduciary administering an estate are generally exempt from the disclosure requirement, since the fiduciary typically lacks the prior owner's direct knowledge of the property — it isn't a universal executor duty, isn't gated by estate value, and the exemption isn't limited to only trustees.

Question 2 of 10

Property DisclosureEasy

Is a transfer of property between co-owners (such as one joint owner buying out another) generally exempt from the Seller's Disclosure Notice requirement?

AYes, but only if the property is under a set price

BNo, every transfer of any kind requires the notice

CNo, co-owner transfers are specifically excluded from any exemption

DYes, transfers between existing co-owners are generally exempt

Explanation

Texas law generally exempts transfers between existing co-owners from the Seller's Disclosure Notice requirement, since a co-owner already has direct knowledge of the property — it isn't a universal no-exceptions requirement, isn't gated by price, and isn't specifically excluded from the exemption list.

Question 3 of 10

Agency & BrokerageEasy

What is an 'open listing' in Texas real estate practice?

AA listing available only during open-house events

BA non-exclusive listing where multiple brokers may compete for the fee

CA listing that requires no written agreement at all

DA listing that is publicly posted on a county courthouse bulletin board

Explanation

An open listing lets a seller work with multiple brokers non-exclusively, and only the broker who actually procures the buyer earns a fee — it has nothing to do with courthouse postings, isn't limited to open-house timing, and Texas listing agreements generally still need to be in writing to be enforceable.

Question 4 of 10

Real Estate CalculationsMedium

Annual property taxes are $3,650. At closing on day 100 of the year (365-day year), how much is the seller's share of taxes, assuming the seller pays for the days they owned the property this year?

A$1,000

B$1,650

C$3,650

D$2,650

Explanation

Daily rate = $3,650 ÷ 365 = $10/day. The seller owned the property for the first 100 days: 100 × $10 = $1,000. Common errors: using 165 days instead of 100 ($1,650), or calculating the buyer's remaining share (265 days = $2,650) instead of the seller's.

Question 5 of 10

Agency RelationshipsMedium

What is the general legal difference between 'puffing' and misrepresentation?

APuffing and misrepresentation are simply two different names used for the exact same conduct

BPuffing is illegal in every state, misrepresentation is not

CMisrepresentation only applies to statements made in writing

DPuffing is opinion-based sales talk; misrepresentation is a false statement of fact

Explanation

Puffing is exaggerated opinion ('this is a fantastic view') that isn't treated as a factual claim, while misrepresentation is a false statement of fact that a buyer could reasonably rely on — the two carry very different legal consequences, puffing generally isn't illegal, and misrepresentation isn't limited to written statements.

Question 6 of 10

Landlord-Tenant & OwnershipMedium

What body of Texas law primarily governs the landlord-tenant relationship?

AThe Texas Real Estate License Act (TRELA)

BThe Texas Business and Commerce Code

CThe Texas Property Code

DTREC's Standards of Conduct

Explanation

Landlord-tenant relationships are primarily governed by the Texas Property Code — TRELA and TREC's standards govern real estate license holders' conduct, not the substantive landlord-tenant relationship itself, and the Business and Commerce Code covers different subject matter entirely.

Question 7 of 10

Real Property & OwnershipMedium

What does 'fee simple' ownership represent in Texas real property law?

AOwnership contingent on another person's lifespan

BOwnership that expires after a set number of years

CA leasehold interest, not actual ownership

DThe most complete form of ownership

Explanation

Fee simple is the most complete, unrestricted form of ownership recognized in real property law — it doesn't expire on a timer, it isn't a leasehold (a tenant's interest, not an owner's), and it isn't tied to someone else's lifespan, which describes a life estate instead.

Question 8 of 10

Contract Law BasicsMedium

What does 'consideration' mean in contract law?

AA discount applied to the final agreed price

BThe time a party takes to think over an offer

CA polite and considerate tone used throughout a negotiation process

DSomething of value each party exchanges under the contract

Explanation

Consideration is the legal term for the value each party gives up or promises under a contract (money, a service, a promise) — it has nothing to do with politeness, deliberation time, or a price discount, despite the everyday meaning of the word.

Question 9 of 10

Closing & FinanceMedium

At closing, how are property taxes for the current year typically handled between buyer and seller?

AProrated by each party's ownership period

BDeferred untouched to the following tax year

CPaid entirely by the buyer, regardless of date

DPaid entirely by the seller, regardless of date

Explanation

Property taxes are typically prorated at closing, so each party effectively covers taxes only for the portion of the year they actually owned the property — not dumped entirely on one side, and not simply deferred untouched to next year.

Question 10 of 10

TREC Rules & StandardsMedium

What is TREC's primary role regarding real estate license holders in Texas?

ALicensing and regulating brokers and sales agents

BDirectly employing every licensed sales agent

CNegotiating commission rates for all brokers

DSetting the sales price for every listing

Explanation

TREC licenses and regulates real estate brokers and sales agents — enforcing standards of conduct, education requirements, and discipline. It has no role in setting listing prices, negotiating commissions, or employing agents, who instead work under a sponsoring broker.

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