Texas Real Estate Exam Practice

Question 1 of 10

TREC Rules & StandardsEasy

What must a Texas broker license applicant generally hold before applying, beyond passing the broker exam?

AA four-year law degree from an accredited university, regardless of circumstances

BNothing beyond simply passing the broker exam

CActive sales agent experience for a set minimum period

DPrior ownership of a licensed brokerage firm

Explanation

A broker applicant generally needs a set minimum period of active sales agent experience before applying, in addition to passing the exam — a law degree isn't required, prior brokerage ownership isn't required, and the experience requirement is real, not optional.

Question 2 of 10

Closing & FinanceMedium

What role does a title company typically play as the escrow/closing agent?

ARepresents the buyer's legal interests

BNegotiates the final sales price for the parties

CDecides if the buyer qualifies for the mortgage

DHolds and disburses funds once conditions are met

Explanation

The title/escrow company holds funds and documents neutrally and disburses them once all closing conditions are satisfied — loan qualification is the lender's decision, price negotiation is between the parties (or their agents), and the title company doesn't represent either party's legal interests.

Question 3 of 10

Landlord-Tenant & OwnershipMedium

What is a landlord's general duty when a tenant properly notifies them of a needed repair?

ANo obligation unless the lease lists that repair

BAct to make the repair within a reasonable time

CIgnore it unless the tenant is current on rent

DMake the repair only if the tenant pays materials

Explanation

A landlord generally has a duty to address a properly-noticed repair within a reasonable time — that duty isn't simply waived by a rent dispute, doesn't require the tenant to front material costs, and isn't limited only to repairs explicitly itemized in the lease.

Question 4 of 10

Contract Law BasicsMedium

What is the difference between a bilateral and a unilateral contract?

AThe two terms simply describe the exact same kind of legal agreement in practice

BA unilateral contract can never become legally binding

CA bilateral contract is mutual promises; a unilateral is a promise for an act

DA bilateral contract requires three or more parties

Explanation

A bilateral contract involves an exchange of mutual promises (both sides promise something), while a unilateral contract is a promise made in exchange for someone actually performing an act — a reward contract is a classic unilateral example. Neither requires three-plus parties, and a unilateral contract absolutely can become binding once the act is performed.

Question 5 of 10

Real Estate FinancingMedium

What is the main practical difference between a fixed-rate and an adjustable-rate mortgage?

AAn adjustable-rate mortgage never charges any interest

BThe two terms describe identical loan structures

CA fixed-rate mortgage can never legally be refinanced again at any later point

DA fixed-rate's interest rate stays the same; an adjustable-rate's can change

Explanation

A fixed-rate mortgage locks in one interest rate for the life of the loan, while an adjustable-rate mortgage's rate can change periodically based on market conditions — a fixed-rate loan can still be refinanced like any other loan, and an adjustable-rate loan absolutely still charges interest, just at a rate that can move.

Question 6 of 10

Property DisclosureMedium

Which of these is a commonly recognized exemption from the Texas Seller's Disclosure Notice requirement?

AA sale priced above the local median

BA sale where the buyer has an agent

CA transfer by foreclosure or trustee's sale

DA sale that closes within 30 days of listing

Explanation

Foreclosure and trustee-sale transfers are among the recognized exemptions, since the seller in that situation typically isn't the prior owner with knowledge of the property's condition. Buyer representation, sale price, and how quickly a deal closes have no bearing on whether the disclosure requirement applies.

Question 7 of 10

Real Property & OwnershipMedium

Under the Texas 'rule of capture,' how is percolating groundwater generally treated?

AA landowner may generally capture it below their land

BAll groundwater is owned and allocated by the state

CIt's treated identically to surface water rights

DIt automatically belongs to a downstream landowner

Explanation

Under Texas's rule of capture, a landowner generally has the right to pump and use groundwater beneath their own property — it isn't centrally state-owned in the way surface water is regulated, it doesn't automatically flow in ownership to a downstream neighbor, and groundwater and surface water are treated under distinctly different legal frameworks in Texas.

Question 8 of 10

Closing & FinanceMedium

Why is a property survey often obtained before a Texas real estate closing?

ATo determine the property's exact market value

BTo verify the buyer's identity before funding

CTo show boundaries and any encroachments

DTo confirm the mortgage interest rate is accurate

Explanation

A survey shows boundary lines, structures, and any encroachments (like a fence crossing a property line) — it's a factual mapping of the land, not a valuation tool, an identity-verification step, or something that has anything to do with confirming a loan's interest rate.

Question 9 of 10

Agency RelationshipsMedium

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

APuffing is illegal in every state, misrepresentation is not

BMisrepresentation only applies to statements made in writing

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

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

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 10 of 10

Contract Law BasicsMedium

What does the Statute of Frauds generally require for real estate contracts?

AThat they be renewed every 90 days to stay valid

BThat they be reviewed by a judge before signing

CThat they include a handwritten legal description only

DThat they be in writing to be enforceable

Explanation

The Statute of Frauds requires certain contracts — including those for the sale of real estate — to be in writing to be enforceable, precisely because real estate deals are significant enough that a verbal agreement isn't considered reliable proof. It doesn't require judicial pre-review, a handwritten-only format, or periodic renewal.

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